Smart City [Part 2 of 2]
Building the bridge between real estate and tech.
The total value of real estate in the United States is conservatively estimated at $30 trillion — ten times that of the U.S. healthcare industry.
The emerging smart cities industry sits at the crossroads of real estate and technology, and has the potential to reduce the operational costs of every U.S. building by up to 30%. Smart cities tech increases the efficiency of the built world by lengthening the life of buildings and capital items, which decreases costs and improves environmental viability.
These efficiencies help the bottom line in a way never before possible.
“Coming from a background in analysis of owner-operated buildings, utility expenses were one part of the financial statement that we were never able to touch.”
— Stephen Porter, Principal of Real Estate at Kiddar Capital
Kiddar Capital, founded by real estate veteran Todd Hitt, is at the forefront of smart cities tech. The firm’s real estate and construction network is unmatched on the east coast, and the Kiddar team is rooted in the tech and real estate worlds. Kiddar has $800M in real estate and $35M invested in tech and innovation. The combination of these industries is game-changing.
Real estate has been slow to adapt new technologies, which makes smart cities uncharted territory with few standards and even fewer models of success. Nothing has been well-defined, and Kiddar’s mixed DNA positions the firm to pioneer the field. Having the best construction and real estate professionals in Kiddar’s office every day gives them an incredible advantage and unique perspective on smart city investments.
“We have the DNA of technologists and real estate professionals. We’re a hybrid that offers something really unique to the ecosystem.”
— Cheryl Foil, Principal of Technology and Innovation at Kiddar Capital
Until recently, environmental real estate technology has focused on the residential sector with programs like water-use reduction and recycling. High upfront costs meant that commercial real estate was slower to adapt these programs. Now, the initial expenditure is heavily reduced. Devices are becoming cheaper every day, and data can be captured and managed effortlessly. The unit economics provide a compelling case for widespread adoption.
“Whether it’s an office building, a retail space, or a home, people want to see technology implemented in the space. They want built structures that are innovative and resilient.”
— Stephen Porter
Smarter cities are the future of the real estate industry. They offer added value to everyone involved — the tech not only creates things of value, but builds them to last. Smart city efficiencies has the ability to make environmentally friendly buildings equally as affordable or even cheaper to operate than normal structures. It’s only a matter of time before efficient, economical, smart buildings and infrastructure are the norm rather than the exception.