Smart Buildings: Essential for CRE and Retail Leaders’ Competitiveness

October 25, 2024

As industries continue to evolve at a rapid pace, commercial real estate (CRE) and retail leaders are increasingly recognizing the critical need to adapt to new technological advancements. According to a comprehensive 2023 study by Forrester Consulting commissioned by Johnson Controls, smart buildings have become far more than just a passing trend. They are now essential for creating sustainable, secure, and cost-efficient environments that offer a competitive edge to tenants and property buyers alike. The study sheds light on the pivotal role smart buildings play in modernizing operations and ensuring long-term success in these competitive industries.

The concept of smart buildings centers around the digital transformation of infrastructure. With a growing emphasis on healthier and safer environments, digitalization enables better operational insight and accelerates the pace of technological integration. The Forrester study found that an overwhelming 75% of industry leaders acknowledge the importance of digital transformation within their buildings. This shift not only fosters more efficient operations but also aligns with the increasing demands for improved sustainability and security. Smart buildings offer significant advantages, making them indispensable for maintaining a competitive edge in today’s market.

One of the most compelling aspects of smart buildings is their potential to drive substantial cost reductions and augment sustainability initiatives. The Forrester report reveals that nearly two-thirds of industry leaders view smart buildings as crucial for reducing operational costs and accelerating green initiatives. These advancements contribute to business growth and present a compelling case for widespread adoption. However, despite their benefits, the report identifies a critical gap in the integration of building systems. Alarmingly, only 13% of leaders report having fully integrated systems. This deficiency can result in inefficiencies, diminished customer loyalty, and increased regulatory penalties, highlighting the urgent need for comprehensive integration strategies.

The Need for Expert Integration and Vital Data

As industries evolve rapidly, commercial real estate (CRE) and retail leaders are increasingly aware of the need to adopt new technologies. A 2023 Forrester Consulting study, commissioned by Johnson Controls, reveals that smart buildings are no longer just a trend but essential for creating sustainable, secure, and cost-effective environments. These advanced buildings provide a competitive edge for tenants and property buyers, playing a crucial role in modernizing operations and ensuring long-term success.

Smart buildings focus on the digital transformation of infrastructure, which emphasizes healthier and safer environments. Digitalization offers better operational insights and speeds up technological integration. According to the Forrester study, 75% of industry leaders recognize the importance of digital transformation in their buildings. This shift not only enhances efficiency but also meets rising demands for sustainability and security, making smart buildings vital for competitiveness.

One of the most compelling benefits is their potential to lower costs and boost sustainability efforts. The Forrester report notes that nearly two-thirds of industry leaders see smart buildings as essential for cutting operational costs and advancing green initiatives. Despite these advantages, the study highlights a critical integration gap: only 13% of leaders have fully integrated systems. This shortfall can lead to inefficiencies, reduced customer loyalty, and regulatory issues, underscoring the urgent need for comprehensive integration strategies.

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