Increasing commercial property value typically means expensive renovations and enhanced marketing efforts. Smart building technology brings in other options by bringing in cost savings and high value for tenants. Retrofitted Smart Building Technology can mean for example:
- Savings in heating and cooling between 3-10% (Energy Efficiency)
- Space optimization of 20-30%. (Occupancy Monitoring)
- Improved Employee Performance (Air Quality)
- Insurance cost savings (preventive monitoring of accidents such as leaks)
- Facility Maintenance cost savings (15-20% of worker’s time per month)
All these improvements can be achieved by investing in a simple smart building starter kit with ten (10) sensors and a cloud monitoring system. You will recover your investment in a month.
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Increasing a property value with technology
Let´s first forget the technology, and analyze, how a commercial property value can be increased in general. There are three obvious and recognized ways:
Improve the property: Improving the property can make it more attractive to potential buyers or tenants, and therefore increase its value. This could include upgrades to the building’s facade, landscaping, and interior. This might be a good idea, but many times renovation is too expensive if you compare it to possible improvements.
Increase occupancy and rental income: A property’s value is very much based on its potential rental income. By attracting and retaining tenants, you can increase the property’s cash flow and value. If you’re able to attract longer leases by offering better facilities, your property value increases, right?
Reduce operating expenses: By reducing the property’s operating expenses, you can increase its net income, which in turn increases its value. This could involve implementing energy-efficient upgrades or negotiating better deals with service providers . You could negotiate more favourable service terms when services provided are no longer time or resource-based but rather data-driven. Could Building technology reduce your operating expenses?
These are the three most important ways to improve your commercial property value. Can you achieve all these objectives with smart building technology? Yes, you can!
Improving your property with smart building technology – Is it even possible?
Increasing property value with smart building technology is actually very simple and affordable. This is a project that can be done in a couple of months, with an investment of a few thousand dollars (approximately 15.000 square meters, or 160.000 square feet).
With a very small investment, your commercial property or warehouse will become a Smart Building in a few months’ time!
With smart building technology, we refer to the use of advanced technologies and systems such as:
- Occupancy monitoring (optimize required space)
- Indoor air monitoring
- Energy consumption monitoring.
- Fire & water leak monitoring
- Cloud monitoring and real-time alarms
By installing and integrating these technologies into a building, property owners can improve the overall functionality, efficiency, and comfort of the space, which increases its attractiveness and value.
Tenants are willing to sign longer leases when their sustainability criteria are met with the spaces they lease.
Smart energy management systems can also help reduce energy consumption and costs, which can be a significant selling point for environmentally conscious buyers or investors.
Moreover, smart building technology can improve the safety and security of the property by monitoring and controlling access to the building and detecting and alerting the occupants of potential hazards, such as fire or water leaks.
This can help reduce the risk of property damage or loss, which can increase its value and appeal to potential buyers or tenants.
In summary, implementing smart building technology can enhance the functionality, efficiency, comfort, and security of a property, which can increase its value and make it more attractive to potential buyers or tenants.
Increase occupancy rates with Building Technologies
Occupancy rates improve by marketing and selling and renting your property. With building technology, your marketing and sales efforts against rough competition get easier.
You have your real estate data sheet, images, 3D images, and so on, but so do your competitors in the same area.
Smart building is a healthy, efficient building with a perfect working environment inside, and you can show Haltian dashboards to back you up.
You can show real-time data from office humidity conditions, overall occupancy rates, meeting room occupancy rates, parking occupancy rates, energy efficiency, consumption, and a lot more.
Added value to your tenants:
- Monitor office occupancy rates, and increase efficiency.
- Monitor indoor air conditions and make sure the work environment is perfect at every moment. Employee efficiency increases dramatically
- Perfect humidity
- Perfect temperature
- Perfect VOC rates
- Perfect occupancy rates for efficient working
Your investment in transforming your normal “commercial property” into a “Smart Commercial Property”, is a fraction of the investment in eg. facade renovation.
Reduce commercial real estate operating expenses
Yes, commercial real estate operating expenses can be saved with Haltian smart building technology. We help to reduce your operating expenses in several ways, such as:
- Energy Efficiency: Haltian Smart building systems can monitor energy usage and identify inefficiencies, allowing property managers to adjust building systems and reduce energy consumption. This can help lower utility bills, which can be a significant expense for commercial real estate.
- Predictive Maintenance: Our technology can monitor equipment performance and detect potential issues before they become major problems. This can help property managers schedule maintenance and repairs more efficiently, reducing the need for costly emergency repairs and minimizing downtime.
- Space Utilization: Our technology can monitor space utilization and occupancy levels, allowing property managers to optimize space usage and reduce wasted space. This can help reduce real estate costs and improve overall efficiency.
Just to give you an example, with smart control of temperature you can save 3-10% in energy consumption. The same goes for heating and cooling expenses. For an average Warehouse building, this can mean thousands of dollars per year.
Smart Technology investment is recovered in less than a year – only by controlling the temperature.
Another example could be water leakage or sprinkler system water pressure monitoring. By acknowledging a problem in time, you don’t only save tens of thousands of repairs, but several months of downtime. With only ten smart and strategically located sensors, you have your property secured with a fraction of the price of expensive insurance. If you have a custom-made insurance on your property, it’s more than probable you get good discounts by installing smart technology on your property.
One real estate investor calculated 28h/week saved working time per month by installing sensors and monitoring systems on their 10 premises.
Overall, Haltian technology can help commercial property owners and managers reduce operating expenses by improving energy efficiency, reducing maintenance costs, automating tasks, and optimizing space utilization. By implementing smart building systems, property owners can save money on operating expenses, improve their bottom line, and enhance the value of your property.
Property tax savings between 30 and 50% (US only)
On August 16, 2022, President Biden signed the Inflation Reduction Act into law, marking the most significant action Congress has taken on clean energy and climate change in the nation’s history. This might result as very significant property tax savings by installing smart building technologies. (Inflation Reduction Act Guidebook)
Get started – and get amazed
As mentioned we have available a very affordable startup package. You can already get started with 10 sensors in a month and immediately see the value and cost savings.
We do have thousands of commercial buildings in our monitoring, and most of them started with the Startup package.
Describe shortly your premises where you would like to test, and we send you a Startup package proposal with its benefits.