Why Proptech Is More Important Than Ever

The commercial real estate industry is changing direction. In previous decades we saw irregular progress of technological advancement but after the pandemic, we are now witnessing a disruptive shift in demand for buildings to use technology. Technology can enhance the tenant experience, strengthen management and optimize the space and resources within. Where smart technologies were once a nice-to-have feature for modern buildings, today they are critical for addressing prominent marketplace issues facing property managers and owners. 

Climate Change 

On average, 30% of the energy used in commercial buildings today is wasted. Before the pandemic, commercial buildings consumed 13.6 quadrillion BTUs of electricity and generated 826 million metric tons of carbon dioxide emissions. While 2020 saw the most drastic declines in energy usage since 2012, the long-term outlook projects that commercial buildings will increasingly contribute to global carbon emissions for decades to come. Smart buildings are the only realistic solution to changing that trajectory for the better. 

PropTech conserves energy by automatically adjusting the lighting, temperature, and ventilation based on the requirements at a particular time. The research suggests the energy expenditure accounts for almost 19% of the total operational cost of a building. For most of the small-scale and medium-size companies, a 10% reduction in energy can positively impact their profitability by 1.5%.

Hybrid Workplaces 

Employees may finally return to the office this year, but likely not full time. Most workers say they want to collaborate with colleagues in the office sometimes and work remotely at other times—although not if the experience is going to be frustrating due to poor scheduling and disorganized workflow.    

Hybrid workplaces come with a host of complex issues around facilities management. Space management technology is essential for a successful hybrid workplace, allowing employers to process real-time data, automate tasks and provide a superior employee experience.  

This could include anything from contact tracing, cloud productivity tools, planning software or Space management technology.

Smart Buildings 

Energy-efficient properties or smart buildings are the structure that uses technology to automate a building’s operations including lighting, heating, and security. Smart buildings increase efficiency to minimize energy waste. 

Long after the current pandemic ceases to dominate our everyday lives, the advantages that smart building technologies provide to our work environments will continue to improve our day-to-day experiences. Buildings that invest in creating the best tenant experiences today will surely have a competitive advantage for years to come.

To learn more about LeasePilot and get the latest on commercial real estate trends