In today’s competitive real estate market, data is king. But, if you’re not utilizing the Internet of Things (IoT) and analytics to run your business more efficiently, you’re missing out on a major opportunity. Unfortunately, only 25% of real estate companies in a recent KPMG study had a well-established data strategy to capture and analyze the right datasets. This means 75% of companies are not leveraging the power of IoT and analytics and are potentially giving their competitors a leg up.
IoT connects devices to the internet, making them smarter. As a result, IoT can help real estate companies make better decisions, improve efficiency, and compete effectively in an increasingly cut-throat market.
In this article, we’ll discuss five practical ways to use IoT and analytics in real estate.
Optimized Space Usage
In most situations, the cost of rent is one of the most significant and biggest expenses associated with real estate. With IoT sensors and systems, you can see and analyze the foot traffic to your premises. You can tell whether you have rented optimal rent space and scale up or down accordingly with this information. There are different sensors and gadgets you can use to collect this information and feed it into an analytics system. They include:
- Swipe Cards: IoT sensors can be built into swipe cards, which means you’ll have IoT data from visitors as they enter and leave your premises.
- Camera Systems: IoT cameras can be placed in key locations to monitor the number of visitors.
- Beacons: IoT sensors are unobtrusive and easy to install, making them ideal for capturing visitor information without interfering with their experience in your space.
- Wi-Fi Systems: Wi-Fi can also help you track people by monitoring how many devices connect to a network in real time. These insights into device usage are crucial for business spaces because they’ll tell you whether there are too few or too many individuals for optimal use.
- Desk Sensors: IoT sensors can be placed on desks to monitor the number of visitors at different workspaces. This IoT data will give you insights into how many people are in your space when they’re there and what times during the day are most popular for individuals to visit.
In addition to helping you optimize space usage, these sensors and systems also help you reduce the cost of building maintenance by automatically turning on and off AC and lighting and adjusting janitor cleaning schedules.
Also read: How IoT is Shaping ITSM Strategies
Predictive Analytics and Preventative Maintenance
Real estate professionals should use IoT technology and analytics to monitor critical building assets and equipment, such as air conditioning, elevators, and lighting systems, to prevent breakdowns and improve efficiency.
For example, with big data analytics software, you can generate reports that show which assets are showing signs of wear or need maintenance and the most effective time for repairs. These predictive reports might even predict when an asset will fail, so those in charge have enough time to replace it before any problems occur.
One of the most popular uses is to install sensors near or on the equipment and trigger a basic logic when the system should send out an alert. Specific usage examples in this regard include:
- Temperature and Humidity Sensors: These can be placed in server rooms and other areas containing equipment sensitive to environmental extremes.
- Leak Detection Sensors: These can be installed on boilers, storage tanks, and pumps to prevent water damage.
- Strain Gauges: Different types of strain gauges can be used to monitor equipment health, such as elevators and cranes, so they don’t needlessly break down or cause accidents.
- Tilt and Shock Detection Sensors: These are useful for monitoring production machines, so they don’t tip over or get into an accident.
To achieve its full potential, predictive maintenance must collect and analyze sensor data to assess the influence of this on possible failure rates and make use of the findings for improved preventative maintenance and repair planning.
Building Energy Consumption
In addition to helping you plan your building maintenance tasks more efficiently, IoT technology also assists property owners in saving money by allowing them access to real-time information about their buildings’ energy use. With this insight into your business’s usage patterns, you’ll be able to see where there may be issues like air conditioning system overloads or malfunctioning equipment that could result in excessive energy use.
Predictive analytics software can also tell you which devices are using the most electricity so that you’re not wasting money on things like running lights during off-hours or allowing air conditioners to cool empty spaces.
Also read: Why You Should Hire a Chief Data Officer
Building Maintenance and Operations
With IoT technology, property managers now have access to real-time information about how their buildings are operating daily from anywhere in the world through a secure portal on their computers or mobile devices. This level of insight is unprecedented for those who manage commercial properties because it allows them to respond quickly when something goes wrong with little disruption to tenants’ businesses. In addition, this data helps decision-makers run more efficient operations while cutting costs simultaneously—a winning situation all around.
In addition to helping you make business operations more efficient, IoT technology can also help real estate professionals create a better employee experience by improving the working environment. Some examples of how this is done include:
- Ambiance: Natural light is the most desired element in a work environment, yet only 47% of employees enjoy natural light at work. With sensors that can detect temperature and humidity, you’ll be able to provide the perfect ambience for your employees no matter where they are. Noise and light levels can also be adjusted to eliminate distractions.
- Air Quality: It’s a known fact that poorly controlled HVAC systems negatively affect employee morale and productivity. According to the World Green Building Council, better air quality leads to an 11% increase in productivity. IoT sensors can help you maintain optimal air quality conditions in the workplace without ever disrupting employees’ work or comfort.
- Space Design: IoT sensors can also help you identify underutilized spaces in your building. With this information, you can conduct an audit to assess which areas are underutilized and which sites are being overused. Armed with this data, you can make better decisions about how to allocate space for employees.
- Feedback Sensors: Another way IoT sensors can help create a better employee experience is by giving employees the ability to provide feedback about their work. With this information, you can make changes to your building layout, equipment, and office supplies.
How to Start Using IoT and Analytics in Real Estate
Begin by determining your areas of highest priority and identify the IoT technologies that can solve your problems.
There are several manufacturers of various types of sensors on the market. It’s critical that all sensors are connected to your building using the same nomenclature and that you’re given access to data in the form of an API. This will allow you to gather all of the data together and then set alerts, connect with Building Management Systems (BMS), and analyze the data with capable business intelligence software.