By Bill Douglas, CEO, OpticWise, Inc.
Ever heard the saying, “Strong foundations make for strong buildings?” This couldn’t be more true in today’s commercial real estate (CRE) world. As Proptech and IoT continue to take the industry by storm, building future success depends on the architecture of three key elements:
● the foundation: Digital Infrastructure
● the materials: Data
● the blueprint: Artificial Intelligence
The strength of these elements is the driving force that is reshaping the industry, making it smarter, more efficient, and more valuable. Ready for today, future-proofed for tomorrow.
The Value of Data-Driven Digital Infrastructure in CRE
CRE Digital infrastructure is the backbone of modern CRE operations, but its true potential is unlocked when driven by data. Just as the nervous system is the lifeline of a body, digital infrastructure is the lifeline of a building: the communication and control network. It connects every part, from the HVAC to the lighting, and feeds this information back to storage for the brain (AI).
A study by JLL found that smart buildings — those incorporating true, homogeneous digital infrastructures — experience up to 40% improvement in building performance, including better energy management, reduced downtime, and optimized tenant satisfaction. This makes smart buildings evolve from just a network into a powerhouse that drives:
Enhanced Tenant Experiences: Data-powered systems create a level of once-impossible personalization. They improve energy usage, connectivity, and amenities to create comfortable spaces that tenants enjoy. By adjusting things like temperature and lighting based on real-time data, buildings keep tenants happy, leading to longer leases and fewer vacancies.
Operational Efficiency: Real-time data acts as a building’s control center, helping to spot problems early and keep everything running smoothly. This means fewer breakdowns, less downtime, and more consistent service for tenants.
Future-Proofing Assets: Like updating your phone, data helps buildings stay flexible and ready for new technologies and market changes. This gives CRE owners a competitive advantage by ensuring buildings remain valuable and relevant, without costly upgrades down the line.
By focusing on owning and controlling their property’s data, owners aren’t just staying afloat — they’re riding the wave of progress.
The Role of Data in AI-Driven Actionable Intelligence
Imagine you’re a ship captain navigating an ocean of data. Alone, the ocean is overwhelming, but with AI as your compass, you can steer toward opportunities and avoid storms. Here is how AI can use a sea of data to change the game:
Predictive Maintenance: AI acts like a weather radar for your equipment, detecting early warning signs and helping you make repairs before the storm hits.
Market Analysis: AI scans the waters (market trends) to give you real-time insights into prices, leasing, and investment opportunities allowing you to chart the most profitable course.
Space Optimization: By analyzing occupancy patterns, AI ensures every square foot of your building is working hard and harmoniously to make your property more profitable.
At the core of AI’s power is its ability to turn raw data like a great body of water into actionable intelligence — transforming the mass into clear directions like streams, making it easier for property owners to make smart and strategic decisions. According to a survey by Deloitte done in 2020, almost 70% of commercial real estate executives plan to invest in AI and machine learning technologies over the next 3 to 5 years, underlining the growing importance of integrating AI into the CRE space to enhance building management.
Owning and Controlling Data: The Key to Success
It’s like owning the deed to prime real estate — yours, and whoever controls the data has the keys to the future — you. While cutting-edge technologies such as digital infrastructure and artificial intelligence (AI) are essential for success, the true power lies in owning and controlling the data that fuels these systems. For Commercial Real Estate (CRE) stakeholders, retaining control over data is a strategic advantage that offers several benefits:
- Ensure Security and Compliance: Think of data as the treasure locked in a vault. You wouldn’t leave that vault unprotected, and the same goes for sensitive information. By controlling data, CRE owners can enforce robust security measures and ensure compliance with regulations, preventing costly breaches or legal issues. This level of control provides peace of mind, knowing that data is protected against cyber threats and mishandling.
- Customize Solutions: No two properties are the same, and neither should the tools used to manage them. By owning the data, CRE stakeholders can tailor digital solutions and AI applications to meet the unique needs of each property. Whether it’s optimizing energy consumption, improving tenant engagement, or streamlining maintenance, having direct access to data allows for customized, flexible strategies rather than relying on generic, one-size-fits-all solutions that may not fully address specific challenges.
- Maintain Long-Term Control: Technology is constantly evolving, and it’s crucial to stay ahead of trends. When CRE owners control their data, they can make informed decisions about investments and upgrades, ensuring they are never left behind by new developments. Owning their data enables long-term control and scalability, allowing property owners to pivot or adjust strategies as new opportunities arise without being restricted by third-party data access or changing platforms.
According to a 2020 report by McKinsey, data-driven organizations are 23 times more likely to acquire customers, six times more likely to retain customers, and 19 times more likely to be profitable. This highlights how crucial data is in driving both operational efficiency and profitability. In short, owning and controlling data empowers CRE stakeholders to safeguard their assets and also unlock tailored solutions that enhance efficiency, security, and profitability. Owning and controlling data & digital infrastructures is literally the “cornerstone of success” in the modern real estate landscape.
Unlocking the Future of CRE
In the world of CRE, data is the key to unlocking the future. By tapping into the power of digital infrastructure and AI, data-driven property owners can enhance tenant experiences, streamline operations, and make smarter decisions that shape the landscape for years to come. Those who take control of their data won’t just stay ahead — they’ll set new standards for success in the industry. When you embrace data, you’re not just building structures — you’re building the future of your
commercial real estate portfolio.
For over three decades, Bill Douglas, CEO of Golden-based OpticWise Inc., has been at the forefront of using technology to solve complex business problems. His relationships and entrepreneurial experiences guide OpticWise through rapid growth while promoting technology changes that impact the commercial real estate markets.