Smart Buildings Offer Competitive Edge for CRE and Retail Leaders

As the commercial real estate sector faces unprecedented challenges, the movement toward smarter buildings is top of mind. Building on a 2023 commissioned study conducted by Forrester Consulting on behalf of Johnson Controls, a recently released spotlight report, “Cracking The Smart Buildings Code: A Spotlight On Retail And Commercial Real Estate,” revealed that investments in smart buildings are essential for leaders aiming to enhance sustainability, security, and save money.

“Smart buildings are not just a trend; there is growing recognition they are a necessity for modern commercial real estate,” said Vijay Sankaran, vice president and chief technology officer at Johnson Controls. “This report highlights the urgent need for integrated systems and expert partners to navigate the complexities of today’s commercial real estate market to achieve long-term success.”

Building Digitalization a Critical Differentiator

The digitalization of buildings provides an immense opportunity to gain a clearer picture of the operation of facilities to create sustainable, healthy, and safe environments—a critical differentiator for both commercial real estate tenants and buyers. Notably, 75% of commercial real estate and retail leaders say smart buildings are important to accelerating their digital transformation efforts. Nearly two-thirds of leaders indicate smart buildings are important for reducing costs, accelerating sustainability initiatives, and driving business growth. These results reveal that retail and commercial real estate leaders are seeking outcomes that have a positive impact for building owners, occupants, and the bottom line.

Additional key findings include:

Competitive Differentiator. Investing in smart buildings is a competitive differentiator. Smart buildings not only help commercial real estate and retail leaders attain sustainable, secure, and efficient outcomes, but they also competitively differentiate their facilities in the market.
Integration Gaps. Only 13% of commercial real estate and retail leaders say they have fully integrated building systems, leading to inefficiencies and increased risks. This lack of integrated data and insight is reducing operating efficiencies (62%), reducing customer loyalty (59%), and increasing regulatory penalties (57%).
Vital Insights. Building data is crucial for decision-making across various departments, including security, sustainability, and facilities management, and many leaders recognize the current risks they face by having limited data.
Partner Expertise. Leaders seek partners with advanced technology, integration capabilities, and industry experience to drive smart building initiatives.

To learn more, visit: http://www.johnsoncontrols.com/OpenBlue.