Technology To Improve Sustainability Can Be Installed In All Properties, Not Just New Builds

Today, many developers are installing technology in new developments that can improve sustainability. In particular, they are investing in solutions that help occupiers reduce carbon emissions and cut down on waste. 

But how should the owner of an existing building implement this kind of new technology? Retrofitting can be costly, and the building might lack the necessary infrastructure to support these solutions. 

Bisnow spoke to Retransform Product Manager Anamaria Spulber about where owners of existing properties should begin their sustainable tech journey.

Bisnow: What are the main challenges a property owner of an older building faces in terms of technology?

Spulber: Two key challenges are embodied carbon and carbon dioxide budgets. Soon, buildings that are not working to reduce carbon may violate laws or lose permits. In a few years’ time, every building will have a carbon budget, which is likely to decrease over the years until we reach carbon neutrality by 2050. 

A building’s embodied carbon is fixed at the point of construction, but a property owner can avoid incurring extra costs in five or 10 years’ time as carbon policies tighten by future-proofing a building now. This is where technology comes in.

If a property owner doesn’t act soon, they might face a lower valuation. In extreme situations, a building may become obsolete because it doesn’t face the minimum sustainability standards. It may also become more expensive to operate, which leads to lower profitability.

Bisnow: Is the property industry aware of how technology can improve sustainability? 

Spulber: There are different levels of awareness or understanding of the different technologies out there and their potential to help. However, the adoption curve is relatively low across property owners. 

Generally, there’s a risk aversion to new technology. At the same time, the construction sector's economic instability and fragmented workforce hinder innovation and change. Data silos halt the integration of specialized knowledge and the comparison of green and traditional materials. 

The continued evolution of technology will enhance the value proposition of smart buildings for real estate stakeholders. For example, Internet of Things device prices have declined massively over the last five years while their accuracy and sensitivity have been enhanced for a wider range of appliances. We are seeing improved speed and accuracy of 3D model data capture, and it’s easier to implement digital twins. 

Bisnow: How should a property owner create a strategy to update a building?

Spulber: A good place to start is to understand upcoming regulations. Energy-efficiency policies could require building renovation passports, mandated emissions reporting, carbon taxes, fines and even building closures. 

Next, they should look at green construction. This includes minimizing material volumes through optimized design and construction processes and using low-carbon or recycled materials such as biocement. 

They could consider strategies such as circular principles. Retrofitting and repurposing existing assets can save up to 95% of embodied carbon emissions compared to buying new products. 

They should also keep in mind that when it comes to technology, there are always more systems arriving. These include energy management systems, solar-plus-storage solutions, grid interactivity, distributed energy resources management systems and solutions to create digital twins.

Bisnow: How does data come into this strategy?

Spulber: Data, when used effectively within a proptech strategy, improves efficiency, enhances customer experiences and mitigates risks. To optimize any operations and move towards net-zero requires good data. 

Building owners need to understand data holistically, seeing how a building’s operational functions are intertwined. This includes how occupants are using the space and the impact of their behavior.

Bisnow: How can effective data use improve building performance and management?

Spulber: Proptech platforms use data to optimize property management operations. This includes tracking maintenance schedules, energy consumption and tenant satisfaction. IoT devices provide real-time data on energy usage, security and maintenance needs, enabling proactive management.

Data analytics can assess risks associated with real estate investments, such as credit risk for tenants or market volatility. This helps investors and lenders make informed decisions. It can also ensure compliance with local regulations and industry standards by tracking property transaction records, lease agreements and zoning laws.

Bisnow: What are the simplest technologies that a property owner could consider first?

Spulber: Solutions that enhance efficiency and security can be easily implemented. These include smart lighting, thermostats, access control, energy monitoring and IoT sensors. 

Solutions that improve tenant experience can also be fairly simple, such as tenant-focused apps, voice assistants and waste management solutions. Careful consideration of building infrastructure, budget and tenant preferences, along with phased implementation, ensures a seamless transition to a technologically advanced building environment.

Bisnow: What are the main hurdles that a property owner might come across with updating technology?

Spulber: The largest hurdle is understanding that while retrofitting comes at a cost, in the long term, they will reap the benefits. They need to take a long-term view, but the incentives aren’t always clear.

Property owners also face barriers such as low bandwidth and poor connectivity, the difficulty of integrating outdated systems with modern technology, tenant acceptance and education, and complicated vendor selection. To overcome these hurdles, they need to assess their technology needs, plan a clear road map, work with experienced professionals and communicate effectively with tenants.

Bisnow: Is technology more accessible now that much of it is cloud-based?

Spulber: Cloud-based technology has greatly improved accessibility by reducing costs, enabling scalability and providing convenient anytime, anywhere access to software and data. It simplifies updates and maintenance, fosters collaboration, enhances security, offers disaster recovery options and provides diverse services. 

The global reach of cloud providers ensures optimal performance for users around the world. However, organizations should prioritize data security and choose cloud services that align with their specific needs and compliance requirements.

This article was produced in collaboration between Retransform and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.