Smart Buildings Keep Getting Smarter continued
More Challenges
In addition to convincing owners that the smart technology investment will pay off financially , facilities managers and occupants need training and support in using the smart building features .
" If you put something sophisticated in and don ' t have the engineer that can monitor it , it can be a problem ," says Erdely .
There ' s also the rapid advancement of technology . " If you look at the AI space , that world is flying so rapidly ," says Gould . " There ' s some fear of adoption because the technology is moving quickly ."
" There are no LEED-certified buildings in the Rio Grande Valley market , so we will be the first ," says Galvan . The remaining two-thirds of the building will be marketed as multi-tenant .
" Sustainability is a hot topic in office leasing . It ' s popular , and people want to be associated with it ," notes Galvan . " Modifying our office building to pursue LEED certification should help us with leasing activity . Being the first in the market should give us an edge . Hopefully , the investment draws increased rental rates ."
Building Standards Driving Smart Tech
Building energy codes for new construction and Building Performance Standards ( BPS ) for existing buildings are becoming key to climate policies in many U . S . cities . The policies are intended to reduce the carbon footprint by requiring buildings to meet certain standards .
" Benchmarking laws are driving building owners to do work on their buildings ," Gould says . Fifty-five jurisdictions in the U . S . currently have BPSs .
Additionally , utility incentives and tax benefits are available for smart technology , including retrofit financing for the Inflation Reduction Act and C-PACE ( Commercial Property Assessed Clean Energy ).
Retrofit Examples
The new owner of Warner View Corporate Center in Woodland Hills , CA ., invested $ 1.5 million in energy-efficient building improvements , including LED lighting , HVAC upgrades , EV charging stations , wireless thermostats , occupancy sensors , evaporative cooling HVAC rooftop units , solar window film , and an energy monitoring system .
With an initial baseline ENERGY STAR Score of 26 ( out of 100 ), the owner hired consultant Green Econome to help lower its operating expenses . Priorities included auditing and identifying inefficiencies and selecting methods covered by utility incentives and financing to offset project costs .
Erdely explains that the owner was " very gung-ho about doing everything to make it sustainable ," and the building ' s ENERGY STAR Score increased to 96 after the project .
Rio Grande Valley Building Lands Large Lease
In another example , Galvan ' s company , Coldwell Banker Commercial Rio Grande Valley , recently signed a big lease with the U . S . Citizenship and Immigration Services ( USCIS ) to occupy one-third of a 60,000-sf , Class A multitenant office building in the Rio Grande Valley market .
Coldwell Banker is making major modifications to the existing building to earn LEED certification .
" The USCIS has requirements in its tenancy that the landlord make modifications to the building and its infrastructure — everything from thermostats and new HVAC units to windows ," says Galvan .
The conversion has a price tag of $ 2.5 million to $ 3 million .
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Enroll in courses to gain the knowledge needed for successful smart technology integration in commercial real estate :
Real Estate Development : Environmental Factors This course covers environmental factors in real estate development , including sustainability certifications and environmental assessments . Participants will learn to evaluate surface , sub-surface , atmospheric , and cultural restrictions on a property ' s environmental impact .
Real Estate Risk Analysis The Real Estate Risk Analysis course equips professionals with the skills to define , quantify , and mitigate risks associated with real estate investments . Participants will engage in case studies and use risk models to evaluate the probability of achieving investment goals . The course emphasizes environmental factors , such as energy efficiency and sustainable practices , which align with reducing carbon footprints and enhancing building performance through smart technologies .
Surviving Volatile Markets : Mitigating Lease Risk This course focuses on analyzing leases and the true cost of occupancy from both tenant and landlord perspectives to address tenant defaults . Participants will examine subleases , lease buyouts , and market trends to develop strategic solutions that benefit clients in commercial real estate . Smart technology , as emphasized in the article , plays a crucial role in mitigating operational and financial risks , including lease risks , by offering real-time data on energy efficiency , safety , and building performance .
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