As every decade passes, the real estate industry changes so fast-paced that instantaneous, intersectional effects reflect everywhere. During such a dynamic period, it becomes increasingly pertinent to not only adapt but to comprehensively equip yourself with innovation in technology. Needless to say, this is to improve operational efficiency as well as tenant satisfaction, when talking in border terms.
One of these tech tools is something that’s been gaining a lot of traction – IoT i.e. Internet of Things. If you’ve heard about this before then we’re gonna have a more extensive discussion about it, and if not, we’ve still got you covered!
We will be exploring more about what IoT in Real Estate is and further elaborate on some fruitful tips that you can leverage as a real estate professional with the Internet of Things in real estate. Read on!
IoT in a Nutshell
IoT is essentially the amalgamation of a multitude of devices, systems/setups and buildings with the aim of making real estate management more efficient. The landscape of real estate is transforming thanks to the Internet of Things in Real Estate, enabling companies to sharpen their competitive edge and streamline costs.
Through IoT-powered interconnected physical devices, real estate professionals can enhance the home-hunting journey, locate buyers for unoccupied properties, and attain their financial objectives with precision.
Why IoT When Other Resources Really Work Just Fine?!
Well, we do have a compelling one-word answer – Competition.
In the freshest insights unveiled by the IoT Analytics “Spring 2023 State of IoT” report, a compelling narrative emerges. It reveals a staggering 18% surge in global IoT connections throughout the year 2022, catapulting the tally to an impressive 14.3 billion active IoT endpoints.
As we advance more and more towards optimizing with the most out of every technology available, IoT in real estate doesn’t stay behind. Hence, the IoT landscape shows only an exponential anticipatory growth in 2023. There is currently an astounding count of 16.7 billion actively connected endpoints as the above report suggests a 16% expansion, globally.
More than 15 billion IoT devices are embedded in everyday objects – right from your TV, dishwasher, washing machines, cars, and many more. Additionally, according to Statista, this figure is projected to ascend even higher, scaling the majestic peak of 29 billion by the year 2030.
To Delve Deeper, Why Do We Need IoT in Real Estate Then?
According to a Deloitte survey conducted in 10 countries that consisted of 750 CRE owners/operators, developers, brokers, and investors, 29% of them stated that tenant risk is one of the major challenges that the CRE industry faces.
Here are some ways IoT is being used in commercial real estate. Let’s take it step-by-step:
1. Smart Building Management: IoT sensors and devices can be used to monitor and control various aspects of building operations, such as lighting, temperature, energy consumption and real-time energy monitoring. This results in cost savings and improved energy efficiency for operations in commercial real estate.
2. Tenant Experience: IoT in real estate can be used to enhance the tenant experience by providing smart amenities such as automated lighting, temperature control, and security systems. Utilizing this aspect can help you avail increased tenant satisfaction and retention.
3. Predictive Maintenance: IoT sensors can be used to monitor equipment and systems in real time, allowing for predictive maintenance and reducing downtime, thereby improving operational efficiency and escalating cost savings.
According to the same survey, only 8% of professionals submitted that they do not inculcate IoT sensors in their business. That evidently says a lot about what your current competition might be doing right.
4. Space Utilization: IoT sensors can be used to monitor space utilization, allowing property managers to optimize space usage and reduce costs. As per Gartner’s findings, IoT for real estate has the potential to reduce expenses related to energy consumption, spatial management, and building maintenance by as much as 30%.
IoT-Powered Predictive Analytics and Preventive Maintenance
IoT in real estate analytics is a harmonious union, especially when it comes to preventive maintenance. This synergy yields a remarkable array of advantages, including:
Vigilant Equipment and Asset Monitoring: IoT empowers the constant surveillance of critical equipment and assets within a building, providing real-time insights into their operational status.
Prolonged Equipment Lifespan: By proactively identifying potential issues, IoT aids in extending the lifespan of essential equipment, thereby reducing the need for premature replacements.
Timely Failure Tracking: The system is adept at tracking and flagging failures, from malfunctioning elevators to HVAC system irregularities, enabling swift interventions to mitigate disruptions.
Minimized Equipment Failures: Through predictive analytics, IoT for real estate helps minimize unexpected equipment breakdowns, ensuring uninterrupted building operations.
Optimal Utilization of Maintenance Teams: IoT data enables the optimal deployment of maintenance teams, ensuring that resources are allocated efficiently to address priority issues.
Enhanced Operator Safety: IoT’s proactive monitoring enhances operator safety by preemptively addressing potential hazards and safety concerns.
Proactive Alerts: Commercial real estate professionals receive timely notifications when major equipment is on the verge of failure, allowing for proactive maintenance and cost savings.
Streamlined Automation: By automating manual tasks, IoT eliminates the need for resource-intensive manual labor, effectively reducing avoidable high repair costs.
Limitations and Concerns of Using Internet of Things in Real Estate
The main parameters to take into account are preventative measures against data exploitation. The datasets in real estate documents and reports do contain sensitive financial information that might be prone to attacks. Hence, data protection and privacy must be non-negotiable always and every time.
Per Fortune Business Insights, the IoT market is poised for an electrifying increase, forecasted to surge at an annual growth rate of 26%. By the year 2029, it is projected to bask in the amount to a nearly 2.5 trillion USD valuation, marking a monumental milestone in its evolution. Talking about smart industries, which include the real estate market, it is projected that the usage of IoT for real estate in operational purposes shall make a sustainable impact on their productivity, growth and profitability, thereby accelerating market growth.
An important point to note is that multifamily housing such as flats, villas, condos, high-rise apartments, terraced dwellings, etc. are projected to hold a greater market share and even register high CAGR when adapted to IoT technology. This is of course because of the advantage of high network connectivity among the system via IoT services.
Monk Tech Labs is a leading provider of property management software that leverages IoT to optimize operations and improve your tenant satisfaction. Our software helps streamline rental operations, allowing property managers to efficiently manage their properties and boost occupancy rates. It offers features such as automated workflows, custom apps for tenants, and shared amenities monetization. This platform transforms property management by providing a single dashboard for managing various aspects of property operations, including maintenance, tenant communication, and financial management.
IoT is a powerful tool that can help improve operational efficiency and tenant satisfaction in commercial real estate. With the help of Monk Tech Labs’ TheOfficeMonk, as a property manager you can leverage IoT to optimize your operations and provide a better experience for your tenants. Let’s talk!
1. KPMG International. (2022). Real Estate Innovations Overview. Real Estate Innovations Overview
4. Statista: IoT connected devices worldwide 2019-2030 | Statista
9. Fortune Business Insights: Internet of Things [IoT] Market Size, Share & Growth by 2030