The Internet of Things (IoT) has made steady advances into commercial real estate sector for years and this technology is evolving quickly. Lighting and energy demand response controls are proliferating for commercial facilities, adding even more value to building environments, workplace experience and energy efficiency goals.

While enhancing building sustainability through LEED Certification is an admirable goal for building stewardship, a newer, emerging global standard for the modern workplace, WELL Building Standard™, is poised to raise the bar.

The International WELL Building Institute (IWBI) is leading a global movement to transform buildings and communities to help people thrive. IWBI’s WELL Building Standard is a leading global rating system and the first to be focused exclusively on the ways that buildings, and everything in them, can improve the occupant’s comfort, drive better choices, and enhance health and wellness. The WELL v2™ pilot is a newly launched version of the WELL Building Standard, and the WELL Community Standard™ pilot is a district scale rating system that sets a new global benchmark for healthy communities.

Focused on enhancing the comfort and improving the health and wellness of its occupants, Well Building Standard relies heavily on IoT for sensors and communication hardware to remotely monitor the quality of a building’s environment – air, water, light, and noise.

Whether or not a commercial building manager participates in the WELL Building Standard, those that are considering investing in smart technology for their facility are in good company. Recent research shows that the global smart building market is expected to grow from an estimated US$7.42 billion in 2017 to nearly US$32 billion by 2022. And a recent survey of 20 countries found that 57 percent of US organizations and 59 percent of global organizations plan to increase their investments in smart building measures related to energy efficiency this year.

How does building optimization translate to real-world results? Benefits of smart building IoT technology includes:

Cost-Savings

Keeping building operations costs in check is a challenge for every facilities manager. While spending on new technology might seem counterintuitive to saving money, cost savings will be actualized over the long term.

Power-hungry machinery, inefficient lights and equipment, and proper time of use can all be addressed—if the FM is vigilant about real time energy usage. A building enabled with technology provides granular data regarding every pump, motor, compressor, boiler, light, etc., so that it is possible to see where a building’s energy usage is concentrated. With greater visibility into operations and equipment, it is possible to pinpoint inefficient pieces of equipment or wasteful usage patterns and make deliberate improvements to reduce energy consumption and costs overall.

Wouldn’t it be time efficient to fix things before they break? The data gathered from smart building technology can help predict when something’s going to fail. Predictive maintenance provides a way to avoid an expensive emergency technician visit and the costs associated with downtime.

Utility companies charge more for power at certain times of the day than others — usually the times when everyone else is also demanding it. Knowing the energy usage of all equipment at all times throughout the day can help FMs plan ahead to avoid those high-demand times and charges. Smart building technology can help with that, enabling the FM to shift the power demand in their favor, and reducing the energy bill dramatically.

Happier & more productive tenants

Smart building benefits are not limited to cost savings; they also extend to people. Optimizing the human experience is important for attracting and retaining tenants and can boost productivity and satisfaction among employees. Here’s how:

Studies have shown that, as air quality goes down, so does productivity. Smart buildings offer the ability to track indoor air quality—CO2, dust particles, volatile organic compounds, humidity level, and more—and make improvements toward healthier working and living. Lost productivity is expensive – another study showed that, from 2000 to 2008, improvements in air quality nationwide are estimated to have saved manufacturers US$20 billion annually from productivity loss.

A 2012 study found that only about 40 percent of US workers were satisfied with their office temperatures; design standards call for a rate closer to 80 percent. Another study shows 53 percent of employees say they’re less productive when the office is cold. The trend today is more modern, livable workspaces; smart buildings make it possible to enhance the human experience and cut costs at the same time.

Enhanced sustainability

Optimizing energy and resource use is a concern faced by many facilities managers, who are sometimes tasked with meeting certain objectives related to sustainability. Four in five U.S. firms are currently putting sustainability strategies in place for a variety of reasons, ranging from revenue growth to cutting costs to keeping pace with competitors. One firm’s efforts to reduce its environmental impact and improve efficiency reduced its annual operating costs by US$1.5 million. Technology makes it possible for buildings to operate at optimum energy levels and reduce their carbon footprint — making them both smart and sustainable.

Increase building’s competitive edge

Thanks to smart building benefits, CRE value is now about more than just location. The presence of smart technology is also becoming a market differentiator. Not only are prospective buyers interested in the bottom-line benefits connected to energy use and maintenance, but also in the ways data allows them to connect with their tenants and strengthen tenant engagement. Technology also makes potential problems and issues easier to identify, diagnose and manage — another plus.

Top Ways Facility Managers Save Money

Make the leap to LED

Even though the number of LED installations is steadily increasing, adoption is still at only 12.6 percent. But it’s an excellent way to lower the facility’s electric bill: On average, LED lights use at least 75 percent less energy than incandescent lighting and, according to Energy Manager Today, have the potential to produce a lifetime return on investment of 411 percent for the average office building. And they are available for all types of fixtures, including shop lights, office light panels and more. Switching out old bulbs for LEDs can save cut electric bills in half and should be at the top of the list for facilities management cost saving initiatives.

To maximize savings in lighting, it is also recommended to install a lighting control system to automatically adjust lighting levels. These types of lighting systems allow complete control and automation of lighting based on set schedules, occupancy sensors, vacancy sensors, natural light sensors, and dimming control, and are available for both new construction and retrofit applications.

Seal the air ducts

Air ducts distribute air from the HVAC equipment to various areas inside the building. Ducts experience stress and pressure that can cause wear and tear over time, causing air to leak from the system. Sealing and insulating ducts properly can help reduce up to 20 percent of a cooling system’s energy consumption.

Utilize variable frequency drives on equipment

A motor running at partial speed is more energy efficient than one running at full speed; that means significant savings can be had simply by operating those motors more efficiently. One way to do that is with the use of a variable frequency drive, a type of motor controller that varies the frequency and voltage supplied to an electric motor. VFDs can be used to control the speed of HVAC blower fans, pumps, compressors or anything else. Fans and pumps often operate at partial load; a VFD can change the speed or torque of the motor to control the output of the system, resulting in increased efficiency and energy savings.

Cost cutting

One way to reduce costs is to send multiple facilities services out to bid each year. Economies of scale can be achieved to secure optimal prices on electrical, mechanical, maintenance and more.

Comparing energy rates can produce facilities management cost savings. In areas where it is possible to choose among a variety of energy providers, it is important to compare different providers’ plans, rates and special conditions. The more research done, the better the chances of closing an affordable and stable deal provides a predictable budget, protecting the organization from volatility and unexpected expenses.

In some areas, utility companies offer demand response programs, which involves turning off the electricity or lowering the load at peak utility usage times to take advantage of a better rate.

Get a baseline of current energy consumption

Before doing any of the above, it’s wise to establish a baseline of the building’s current energy performance and consumption. Doing so will help better understand the building’s energy use and provide a point of reference to evaluate the impact of future energy-saving efforts.

Today’s property managers need to be able to react quickly to issues, which is why it is important to have connected devices like water and electrical sensors which can automatically alert the manager when there’s a problem. Intelligent building solutions first arrived in the commercial real estate market as tools to improve specific facility systems such as physical security, HVAC and lighting, which began connecting devices and then collecting and analyzing data.

Continually improving intelligent building technologies dramatically enhance the operations of equipment and provide energy efficiency. The data collected from IoT devices has become a distinguishing factor when it comes to attracting new tenants and keeping legacy tenants’ content. IoT empowers building owners with information about foot-traffic, occupancy rates, and tenant and visitor flow which can be used to market the properties to prospective tenants and better compete in the marketplace.