what is the building? - smart buildings show · smart buildings as relevant to their firm $5bn in...

What Is The Business Case

For a Smart(er) Building?

Susan ClarkePrincipal Analyst

Yahoo

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Verdantix is an independent research and consulting firm with expertise in real estate and smart building technologies.

WeWorkbiggest tenant in London

There are many

signals interest in

smarter buildings

is growing across

the ecosystem $4bnin proptech investment in 2018

Smart Building Showbigger in 2019!

71% of occupiers see smart buildings as relevant to their firm

$5bnin contech investment in 2018

New Smart Building Teams across the ecosystem

What business case do investors, landlords and occupiers look for?

01What makes up the business case for an occupier?02What does a numbers-based analysis look like? 03

Agenda

What business case do investors, landlords and occupiers look for?

01What makes up the business case for an occupier?02What does a numbers-based analysis look like? 03

Agenda

Higher quality tenants

Higher rents

Operating cost efficiency

Capex efficiency 27%

30%

34%

49%

Investors See Smart Buildings As An Opportunity To Find Better Tenants

Investors Survey

N=100Investors

2018 Verdantix survey

25%

26%

28%

34%

N=101Asset managers

2019 Verdantix survey

Asset Managers See Smart Buildings As An Opportunity To Bolster Operating Income of Buildings

Operational efficiency

Charge higher rents

Negotiate longer leases

Quicker to find tenants

Asset Managers Survey

UKUS 45%

% of corporatesprepared to pay a premium for a

smart building fitout

N=304Corporate real estate and facilities

2019 Verdantix survey

48%

Singapore

90%

Corporate Survey

Corporate Occupiers Want Smart Buildings To Deliver Operational Efficiency And Occupant Productivity

Operational efficiency

Gains in occupant productivity

Higher resale value

Differentiator to attract talent

Relevant for flagship sites 52%

66%

71%

79%

84%

N=304Corporates

2019 Verdantix survey

Corporate Survey

What business case do investors, landlords and occupiers look for?01What makes up the business case for an occupier?02What does a numbers-based analysis look like? 03

Agenda

The 3:30:300 Rule From JLL Is Great Starting Point For Thinking About The Value From A Smarter Building

Potential impact ($)

SpaceEfficiency

30

Employee Productivity

300

Barriers

EnergyEfficiency

3

Measurability of impact

Space Management Is A High Return – But Also A Challenging Activity To Pursue

Potential impact ($)

SpaceEfficiency

30

Employee Productivity

300

Barriers

EnergyEfficiency

3

Measurability of impact

Medium-high

High

Low-Medium

Employee Productivity Is The Holy Grail In Smart Buildings Today – But It Is Difficult To Measure

Potential impact ($)

SpaceEfficiency

30

Employee Productivity

300

Barriers

EnergyEfficiency

3

Measurability of impact

Medium-high

High

Low-Medium

High

Low

High

What business case do investors, landlords and occupiers look for?01What makes up the business case for an occupier?02What does a numbers-based analysis look like?03

Agenda

Verdantix has done lots of thinking about the case for a smart(er) building!

VALU

E

R&D Launch Growth Mature DeclineTECHNOLOGY PHASE

Virtual Workplace Assistant

Predictive Maintenance Analytics

Self-learning Facility Processes

Edge AnalyticsIoT Platforms

Advanced Energy Analytics

Micro-BMS

Daylight Tracing Controls

Boiler Controls

Remote Monitoring/Analytics

CHP Controls

BMS

Patc

hyC

onvi

ncin

gPr

omis

ing

Personalized Spaces/ Hot Desking

RT Space Management

Multi-protocol Box

Building Energy Management

SoftwareBIM

Automatic Monitoring and

Targeting

FOM Software

IWMS

Crowdsourcing Data Capture Software

Wellbeing Data Capture Software

Micro-grids Management

Embedded FDD

CMMS

Tech Roadmap for Facilities Optimization Software

Office fit out for

agile working and

employee engagement

Consolidate eight floors into six with better

space management

Reducereactive maintenance

spend by 20%

Reduce energy usagespend by cutting waste

Hypothetical insurance firm –

Rented London Office

Aggregate Investment And Savings Delivered Across Five Years- Hypothetical Insurance Firm in Prime London

-4,000,000

-3,000,000

-2,000,000

-1,000,000

-

1,000,000

2,000,000

3,000,000

Software & office fit-out

Occupancy saving

Net benefit

Energy saving

Maintenance saving

There is a business case for all buildings to be smart(er) #2

Space management is re-invigorating the business case for a smarter building#3

Today investors, landlords and occupiers are all exploring the case for a smart

building #1

Continue the conversation at Smart Building Technologies Europe

Summit 2019. Register today.

Susan Clarkesclarke@verdantix.com

We look forward to seeing you next year at ExCeL London