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What Is The Business Case
For a Smart(er) Building?
Susan ClarkePrincipal Analyst
Yahoo
"Some of the best decisions and insights come from hallway and
cafeteria discussions, meeting new people and impromptu team
meetings.”
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Verdantix is an independent research and consulting firm with expertise in real estate and smart building technologies.
WeWorkbiggest tenant in London
There are many
signals interest in
smarter buildings
is growing across
the ecosystem $4bnin proptech investment in 2018
Smart Building Showbigger in 2019!
71% of occupiers see smart buildings as relevant to their firm
$5bnin contech investment in 2018
New Smart Building Teams across the ecosystem
What business case do investors, landlords and occupiers look for?
01What makes up the business case for an occupier?02What does a numbers-based analysis look like? 03
Agenda
What business case do investors, landlords and occupiers look for?
01What makes up the business case for an occupier?02What does a numbers-based analysis look like? 03
Agenda
Higher quality tenants
Higher rents
Operating cost efficiency
Capex efficiency 27%
30%
34%
49%
Investors See Smart Buildings As An Opportunity To Find Better Tenants
Investors Survey
N=100Investors
2018 Verdantix survey
25%
26%
28%
34%
N=101Asset managers
2019 Verdantix survey
Asset Managers See Smart Buildings As An Opportunity To Bolster Operating Income of Buildings
Operational efficiency
Charge higher rents
Negotiate longer leases
Quicker to find tenants
Asset Managers Survey
UKUS 45%
% of corporatesprepared to pay a premium for a
smart building fitout
N=304Corporate real estate and facilities
2019 Verdantix survey
48%
Singapore
90%
Corporate Survey
Corporate Occupiers Want Smart Buildings To Deliver Operational Efficiency And Occupant Productivity
Operational efficiency
Gains in occupant productivity
Higher resale value
Differentiator to attract talent
Relevant for flagship sites 52%
66%
71%
79%
84%
N=304Corporates
2019 Verdantix survey
Corporate Survey
What business case do investors, landlords and occupiers look for?01What makes up the business case for an occupier?02What does a numbers-based analysis look like? 03
Agenda
The 3:30:300 Rule From JLL Is Great Starting Point For Thinking About The Value From A Smarter Building
Potential impact ($)
SpaceEfficiency
30
Employee Productivity
300
Barriers
EnergyEfficiency
3
Measurability of impact
Space Management Is A High Return – But Also A Challenging Activity To Pursue
Potential impact ($)
SpaceEfficiency
30
Employee Productivity
300
Barriers
EnergyEfficiency
3
Measurability of impact
Medium-high
High
Low-Medium
Employee Productivity Is The Holy Grail In Smart Buildings Today – But It Is Difficult To Measure
Potential impact ($)
SpaceEfficiency
30
Employee Productivity
300
Barriers
EnergyEfficiency
3
Measurability of impact
Medium-high
High
Low-Medium
High
Low
High
What business case do investors, landlords and occupiers look for?01What makes up the business case for an occupier?02What does a numbers-based analysis look like?03
Agenda
Verdantix has done lots of thinking about the case for a smart(er) building!
VALU
E
R&D Launch Growth Mature DeclineTECHNOLOGY PHASE
Virtual Workplace Assistant
Predictive Maintenance Analytics
Self-learning Facility Processes
Edge AnalyticsIoT Platforms
Advanced Energy Analytics
Micro-BMS
Daylight Tracing Controls
Boiler Controls
Remote Monitoring/Analytics
CHP Controls
BMS
Patc
hyC
onvi
ncin
gPr
omis
ing
Personalized Spaces/ Hot Desking
RT Space Management
Multi-protocol Box
Building Energy Management
SoftwareBIM
Automatic Monitoring and
Targeting
FOM Software
IWMS
Crowdsourcing Data Capture Software
Wellbeing Data Capture Software
Micro-grids Management
Embedded FDD
CMMS
Tech Roadmap for Facilities Optimization Software
Office fit out for
agile working and
employee engagement
Consolidate eight floors into six with better
space management
Reducereactive maintenance
spend by 20%
Reduce energy usagespend by cutting waste
Hypothetical insurance firm –
Rented London Office
Aggregate Investment And Savings Delivered Across Five Years- Hypothetical Insurance Firm in Prime London
-4,000,000
-3,000,000
-2,000,000
-1,000,000
-
1,000,000
2,000,000
3,000,000
Software & office fit-out
Occupancy saving
Net benefit
Energy saving
Maintenance saving
There is a business case for all buildings to be smart(er) #2
Space management is re-invigorating the business case for a smarter building#3
Today investors, landlords and occupiers are all exploring the case for a smart
building #1
Continue the conversation at Smart Building Technologies Europe
Summit 2019. Register today.
Susan [email protected]
We look forward to seeing you next year at ExCeL London
