IoT in Commercial Real Estate: Use Cases and Solutions
To meet the dynamic needs of customers and businesses, the real estate industry is using cutting-edge technologies. The Internet of Things has proven to be an effective solution for property managers, tenants, and building owners. IoT solutions deliver business value, differentiate companies from their competitors, and offer new revenue streams
IoT and commercial real estate defined
Before we start talking about the relationship between the Internet of Things and commercial real estate, we need to explain these two concepts.
The Internet of Things, or IoT, refers to physical devices that connect to the internet and can identify themselves with other devices. Thus, they create a network of smart devices that can communicate with each other.
The goal of IoT is to provide fast communication and maximum automation of various processes. In this way, the Internet of Things helps people and organizations save time and money while reducing overall operating costs.
Commercial property is used solely for business or work purposes and includes all types of business centers, from the smallest thrift stores to the largest shopping malls.
Why use IoT in real estate?
The term “Internet of Things” was invented in 1999 by British technologist Kevin Ashton. In some industries, IoT technology has been adopted faster than in others, and in real estate the adoption has been relatively slow. However, over the past few years, some trends have intensified; it’s time to realize why.
The main driver of successful IoT implementation is the further development of machine learning and artificial intelligence (AI).
Development is key here, because it’s one thing to deploy a fleet of interconnected devices like smart thermostats and quite another to let the back end synthesize data, make decisions, and act — which is the role of AI.
There are two key reasons why we are moving to more widespread adoption and application of Internet of Things technologies:
- The proliferation of 5G will continue to increase the overall capacity of systems, allowing for more devices and wider adoption.
- Continuously improving security in IoT systems will enable more people and organizations to trust these systems in the future. However, much work remains in this area, which is partly the reason for the delay in adoption.
Ultimately, IoT is about connecting a large number of devices to the physical world, making the real estate industry an ideal candidate for this technology. Here are two ways the real estate industry is leveraging the power of the Internet of Things.
IoT trends for real estate applications
According to Statista, from 2015 to 2025, the number of connected devices installed worldwide will grow fivefold.
This is not surprising, since IoT technology can be expected wherever people live and work. Think, for example, of things like the emergence of smart home tech solutions. People are equipping their homes so they can control all their smart devices from their phones.
With IoT devices, people can turn lights on and off without even touching a switch or unlock the front door without a key. In general, this makes life simple not only for ordinary people but for commercial enterprises.
The real estate industry is taking advantage of most of the benefits of the Internet of Things. For example, real estate companies can now use different types of mobile real estate applications to see in real time who is trying to view the properties they’re selling, for instance. By integrating smart locks into applications, you can even open the door of a property if someone wants to see it. Likewise, the rental agency can get locked out when a potential tenant leaves, again via a handy phone app.
Benefits of IoT-based apps for the real estate market
Now that you know what the Internet of Things is, let’s take a closer look at why real estate companies continue to adopt IoT technology.
Companies are moving to the Internet of Things for a variety of reasons. In the case of real estate, these reasons include a desire to automate tasks for real estate agents and to streamline property management, selling, and buying.
If you’re in the B2C real estate business, another reason to start using Internet of Things technologies might be to be seen as a pioneer by potential customers. People are impressed by new and evolving technologies, and this is even more the case when they see that your company has adopted these technologies while others have not.
Here are the top reasons to consider developing an IoT application for your real estate business.
Improve productivity with IoT optimization
If you eliminate the possibility of human error, you reduce the likelihood that something will go wrong with your business.
Improve product and service quality
You will have a better chance of impressing potential clients with high-quality services provided through a real estate app.
Increase the reliability of operations
You can simplify the process of mapping properties to other areas of your business model.
Reduce product costs
You can reduce the cost of renting a property if you can use an app instead of a lodging agent. By streamlining the processes you depend on every day, you free up time for your employees which they can then devote to other areas of your business.
Increase customer satisfaction and engagement
By introducing IoT technology, you will be able to reach more customers faster. You will also get more positive feedback from customers. Having smart solutions to meet market needs will save you money and time but also demonstrate to your customers that you are at the forefront of technology. And all of this will increase your brand awareness.
Real estate challenges and how IoT technology may help
IoT applications help solve a number of problems facing real estate companies today.
COVID-19 response
Unexpected events such as the current pandemic jeopardize many industries. Real estate is no exception. Social distancing changed the way people interact with physical space, and the coronavirus outbreak has upended the traditional way of doing business in the real estate sector.
To respond to the current COVID-19 threat, real estate companies are implementing cutting-edge technologies, including IoT real estate technologies. IoT applications can help with tracking social distancing and masking compliance in real estate offices. IoT sensors can also monitor and report indoor air quality.
Lack of affordable housing
Another major problem for real estate is affordable housing. According to CNBC, the housing shortage in the United States is the most severe ever recorded. As tens of thousands of people under the age of 40 struggle with debt and rising healthcare costs, even reasonably priced real estate becomes less affordable for them.
If you want to learn more about how you can power your real estate business with IoT, read the full article here.
