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  • Sean Cragin

Commercial Real Estate capitalizing on Smart Building automation.

The demand by tenets and potential buyers for smart buildings has grown over the years and is expected to grow even more. MIT Center for Real Estate researcher Alfredo Keitaro Bando Hano (2018) found that properties with smart building attributes attracted rents that commanded a 37% premium compared to non-smart building properties. Smart building technology is perfect for an investment property to increase property value and increase interest in potential clients.

Smart Buildings are not just for new or newer buildings. We can automate any building no matter the age or size. Very little retrofitting is required to automate it. Most retrofitting is low cost and requires very little downtime to implement. The size of a building does not affect automation technologies, all of our devices are connected devices, meaning all devices communicate with each other. When one device is out of reach of a hub, it communicates with other nearby devices and connects to the hub. Each device has multiple redundant connection points to the hub to stay connected.

Our system is versatile and can be expanded to fit tenets or buyer's needs and grow as our world advances. Expanding automation is economical for new tenets and new building owners. Cost to add on to existing systems can cost new occupants $0.01 to $1.00 depending on desired upgrades. Our system is future proof that grows as technology advances. We can adapt to any new protocol or technology that comes our way.

By automating HVAC control systems increases building performance by delivering air to areas that are in use. Smart building solutions can remove repetitive tasks like checking if lights are left on or if doors are open. The system also does not require a human to monitor or to control it. Saving time for potential occupants is a great selling point.

The 3-30-300 Rule, and how it is used to cut costs and raise productivity.

"JLL, a professional services firm specializing in real estate and investment management, has developed a framework that illustrates the exponential value of a holistic approach to a smart building strategy. The 3-30-300 principle uses the average order of magnitude between a company’s costs for utilities, rent, and payroll. The industry has been quick to refer to this rule of thumb when considering human capital and the relationship between sustainability and productivity. 



On an annual basis, a typical organization spends per square foot: $3 on utilities, $30 on the cost of the space, and $300 on payroll and expenses associated with the occupants. Using the 3-30-300 model, JLL claims the greatest financial savings from greening a workplace may not be in energy but in productivity. For example, where a 10% increase in energy efficiency would yield $0.30 savings per square foot and a 10% decrease in rent would save $3.00 per square foot, a 10% gain in productivity is worth $30 per square foot." Quoted from Osram on "How to Calculate the Value Proposition of Smart Buildings"



Smart Building is a great investment for any commercial real estate brokers or building owners that are looking for an edge over other commercial properties on the market.




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