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How Smart Technology Can Cut Costs In An Era Of Energy Scarcity

Mar 31, 2025 - forbes.com
The commercial real estate (CRE) industry is undergoing a transformation driven by tenant expectations for enhanced experiences and operational efficiency. According to surveys by CBRE and JLL, a significant majority of corporate occupiers plan to renew leases rather than relocate, prompting building owners to upgrade their assets. This shift is leading to increased investment in technology, with over 80% of real estate leaders planning to boost their tech budgets to prioritize AI, automation, and smart building technologies. These technologies are essential for optimizing building performance, reducing energy costs, and improving tenant satisfaction, especially as energy use accounts for a significant portion of operating costs.

AI and machine learning are pivotal in streamlining operations and reducing costs through predictive maintenance and energy management. IoT and sensor technologies provide real-time insights for cost optimization, while smart building management systems centralize efficiency across various systems. Despite the financial benefits, barriers such as upfront investment, legacy system integration, and technical expertise gaps remain challenges. However, overcoming these obstacles is crucial for digital transformation, which is now a strategic imperative for building owners to remain competitive and meet rising tenant demands.

Key takeaways:

  • AI and machine learning are essential for reducing costs and improving efficiency in commercial real estate by enabling predictive maintenance and optimizing energy use.
  • Energy management systems and IoT sensors provide real-time data that can lead to significant energy savings and operational efficiency.
  • Smart Building Management Systems centralize control of various building systems, allowing for streamlined maintenance and proactive management.
  • Overcoming barriers to digital transformation, such as upfront investment and technical expertise gaps, is crucial for maximizing the benefits of smart technology in commercial real estate.
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