A report titled ‘2020 State of CRE Operations 3.0’ by Facilio – a unified IoT, AI and ML-driven platform for facilities management, highlights the gaps and trends in Commercial Real Estate industry (CRE) operations.
The report cites Tenant experience, energy management and data-driven operations as top priorities for commercial real estate owners in 2020. It also provides predictions on the sustained interest in contemporary management models.
The report touches upon the current state of operations and the priorities of CRE owners across the US, Middle East and India markets, and highlights the growing demand for data-driven operations to drive operational efficiencies and optimisation.
Key findings of the report:
Optimal Asset Management With Automated Predictive Maintenance
According to the study, 60% of maintenance cost is spent on hard services. This can be reduced by 20% by leveraging real-time IoT data for predictive maintenance. This will also ensure a unified digital record of inventory, purchase history, renewals, continuously analyse the asset conditions, detect the faults and diagnose them.
Satisfactory customer experience is not just the major concern of online shopping, telecom sectors or corporates but also is at the Centre for real estate industry. 77% of building owners prioritize tenant experience and allocate 39% of their operational findings towards the same. This can be accomplished through a dedicated tenant portal where occupants can communicate their grievances and workplace apps where employees can digitally connect to their physical workplace and personalise their experience within the building.
Driving Energy Efficiency and Sustainability Through Predictive Maintenance
Buildings account for 70% of the world’s electricity consumption and according to the report, CREs are willing to allot 65% OpEx of their budget towards energy enhancements. Piecemeal tools that offer building or system-level energy solutions have lost sheen, as they’ve been ineffective in meeting the sustainability goals of an enterprise. As the governments across the world, also strive to bring climate change into control, the onus might be placed on the shoulders of building managers/owners to ensure their facilities comply with government’s policies on this regard.
Centralization Of Data: One-Stop Solution For Modern CREs
The first step to smart buildings is centralising operational data that can be used for tenant engagement, maintenance, sustainability, asset performance and so on. The industry was sluggish in evolving from paper managed maintenance to a software-driven approach. However, the need and the urge among owners to centralise their data is growing fast. The report says that 40% of tech investments are directed towards data centralisation.
“Buildings are a powerhouse of data. The automation driven upgrade of commercial real estate assets, a few decades ago which was labelled as CRE 1.0, focused on embedding buildings with hardware that delivered improved services and enhanced performance. The recent adoption of appropriate technologies labelled as CRE 2.0, consisted of CaFM (computer-assisted Facility Management) and other software suites, designed to act as point solutions for property management, maintenance, energy management, occupant applications, etc. Now with the rise of CRE3.0 – an innovative new data-driven model in commercial real estate operations, which is making it possible to optimize asset performance and achieve centralised and real-time management, at an enterprise scale”, says Prabhu Ramachandran, Founder & CEO, Facilio Inc.
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Vishal Chawla is a senior tech journalist at Analytics India Magazine and writes about AI, data analytics, cybersecurity, cloud computing, and blockchain. Vishal also hosts AIM's video podcast called Simulated Reality- featuring tech leaders, AI experts, and innovative startups of India.