Smart Buildings : How IoT is Benefiting Commercial Real Estate Sector

Smart Buildings : How IoT is Benefiting Commercial Real Estate Sector

The Internet of Things (IoT) is changing the way we live and work, transforming many walks of life and making a huge impact on businesses. IoT uses one common internet protocol to connect systems like heating, ventilation and air conditioning (HVAC), lighting, security, and refrigeration, transforming your building’s systems and leading to better outcomes for owners, managers, and occupants.

It is disrupting the commercial real estate (CRE) sector, helping create value for customers and allowing this sector to find new sources of revenue. CRE industry is using building management system to increase the efficiency of the building performance and enhance user experience. Building management ensures better utilization of energy, occupant satisfaction, improved tenant relationships, security and facility management.

Smart buildings are network-enabled building management systems that help in automation of building operations. Smart buildings use technology and data to manage energy, resources, and services in a better way. They improve people’s experience, creating an environment that is efficient and productive.

ISS, a facilities management company, for example, will use IBM’s Watson in more than 25,000 buildings to assess readings from sensors on windows, doors, chairs, ACs, etc. This will help the company in enhancing employee productivity, reducing absenteeism and making a better impression on visitors. Global smart building market size is expected to reach $36 billion by 2020.

CRE firms are adopting smart building technologies to ensure that buildings run at maximum efficiency and make strategic decisions based on actionable insights. Below is the rundown of top ten benefits of smart buildings for the commercial real estate sector.


Smart buildings can lead to increased worker productivity and satisfaction by controlling heating, cooling, lighting, and ventilation.


Building owners can save costs through operational efficiency achieved through smart buildings. These buildings can also help in lowering labor costs. They ensure happy tenants, higher occupancy, enhanced comfort, and streamlined operations.

3.Data Gathering

Through IoT, it has become possible to track information, and measure and collect data in inaccessible areas within the commercial building. With the data generated by smart buildings, CRE owners can differentiate themselves through their excellent services to the tenants to transform their experience, along with fulfilling the unmet demands of consumers.

4.Data Analysis

Smart buildings don’t only have data transfer capabilities, but also powerful data analysis capabilities to take smart actions like tracking motion, air pressure, temperature, water flow, etc.

5.Energy Efficiency

The biggest impact that IoT has on buildings is energy efficiency and reduced harmful waste in the environment. It provides complete energy automation for a building and takes into consideration weather forecasts to save real-time energy costs.


Smart buildings enable building operators to reduce resource consumption, comply with sustainability standards and adjust business processes. By getting real-time information, issues can be fixed quickly, and performance can be managed effectively.


Smart buildings can ensure the security of occupants. It can detect smoke, ask occupants to evacuate the building, contact the right authorities and minimize the spread of risk. You can integrate security systems to make the access control and video surveillance system work simultaneously to secure buildings.

8.Space Utilization

Space utilization becomes easy with smart buildings. Various types of sensors like RFID tags, infrared motion detectors, and beacons can provide information regarding the space occupied. By analyzing the data, it is possible to detect patterns in usage for effective utilization of space.

9.Predictive maintenance

Smart buildings can enable predictive maintenance. They can easily predict in advance a repair or maintenance issue, allowing building managers to take corrective action before the issue arises. Smart buildings can also give the exact time when maintenance is needed, helping prevent downtime.

10.Occupant Satisfaction

Smart buildings ensure personalized comfort and personal assistance, adapting to the occupants of a room based on their likes, dislikes, and activities. They ensure thermal comfort, apt lighting for the occupants’ activities and control of lighting and air distribution for occupants, leading to their satisfaction.

Ending words

The benefits of smart buildings extend beyond energy and maintenance savings, helping create engaging experiences for building owners, operators, and occupants.

To start with, you can install sensors to control energy and utilities. Setup connected system alerts and controls on elevators and escalators, including integrating security systems. You have to connect devices and sensors, transform complex building data into valuable insights and then apply those insights to improve business processes.

Nidhi is working as a content and brand strategist at ProDesigns – a graphic design company, recommending strategies to meet customers’ goals and deliver a superior user experience. She provides content leadership, ensuring that a consistent brand message is delivered to the audience.

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