Against the backdrop of New York Climate Week 2024, the movement toward smarter buildings is taking center stage as the commercial real estate sector faces unprecedented challenges. Building on a 2023 commissioned study conducted by Forrester Consulting on behalf of Johnson Controls, a recently released spotlight report, “Cracking The Smart Buildings Code: A Spotlight On Retail And Commercial Real Estate,” reveals that investments in smart buildings are essential for leaders aiming to enhance sustainability, security, and save money.
“Smart buildings are not just a trend; there is growing recognition they are a necessity for modern commercial real estate,” said Vijay Sankaran, vice president and Chief Technology Officer, Johnson Controls. “This report highlights the urgent need for integrated systems and expert partners to navigate the complexities of today’s commercial real estate market to achieve long-term success.”
The digitalization of buildings provides an opportunity to gain a clearer picture of the operation of facilities to create sustainable, healthy, and safe environments. Notably, 75% of retail and commercial real estate leaders say smart buildings are important to accelerating their digital transformation efforts. Nearly two-thirds indicate smart buildings are important for reducing costs, accelerating sustainability initiatives, and driving business growth. These results reveal that retail and commercial real estate leaders are seeking outcomes that have a positive impact for building owners, occupants and the bottom line.
Additional key findings include:
- Competitive Differentiator: Investing in smart buildings is a competitive differentiator. Smart buildings not only help retail and commercial real estate leaders attain sustainable, secure, and efficient outcomes, but they also competitively differentiate their facilities in the market.
- Integration Gaps: Only 13% of retail and commercial real estate leaders say they have fully integrated building systems, leading to inefficiencies and increased risks. This lack of integrated data and insight is reducing operating efficiencies (62%), reducing customer loyalty (59%), and increasing regulatory penalties (57%).
- Vital Insights: Building data is crucial for decision-making across various departments, including security, sustainability, and facilities management, and many leaders recognize the current risks they face by having limited data.
- Partner Expertise: Leaders seek partners with advanced technology, integration capabilities, and industry experience to drive smart building initiatives.
“As a leader in the smart buildings industry, we have a comprehensive understanding of how connected, data-driven solutions provide deeper insights into a building’s performance and how we can optimize equipment performance and enable proactive services,” said Julie Brandt, president of Building Solutions North America at Johnson Controls. “This report confirms what we’re already hearing from our customers, that smart buildings are foundational to the design, operation, and maintenance of indoor environments, ultimately driving value.”
“This report confirms what we’re already hearing from our customers, that smart buildings are foundational to the design, operation, and maintenance of indoor environments, ultimately driving value.”
— Julie Brandt, President, Building Solutions North America, Johnson Controls
Johnson Controls offers a portfolio of solutions for a variety of industries. At the center of its smart building strategy is OpenBlue, an ecosystem of connected technologies, expertise, and services. It combines data from across a building’s systems and uses advanced digital experiences augmented with AI to provide actionable insights and controls to save energy and reduce emissions. It also simplifies carbon disclosure reporting and regulatory compliance with building performance standards.
