The global benchmarking study uncovers gaps & trends in CRE operations, citing Tenant experience, Energy management & Data-driven operations as top priorities for commercial real estate owners in 2020
77% CRE owners cite tenant experience as a priority, allocate 39% operational spend for the same
Energy ROI takes precedence, driving 65% of OPex towards data-driven energy enhancements
40% of tech investment being directed into DATA: centralization, IoT-driven predictive analytics & portfolio-wide intelligence
Report finds 60% of maintenance spend is on hard services, with at least 20% savings anticipated by combining predictive analysis with automated resolution
New York, February 12th, 2020
Facilio Inc., the world’s first unified IoT, AI and ML enabled data-driven enterprise platform for Building Operation and Maintenance, recently released an insightful report titled ‘2020 State of CRE Operations 3.0’. Facilio has labeled the new era of data-driven operations & maintenance in commercial real estate as ‘CRE 3.0’, marked by the 3-pronged industry focus on data extraction out of siloed building functions; data aggregation on a portfolio-central platform; as well as use of modular apps to perform data-driven operations acting on the insight-rich operational data to enable predictive portfolio operations.
“Buildings are a powerhouse of data. The automation driven upgrade of commercial real estate assets, of a few decades ago – labeled CRE 1.0 – was focused on embedding buildings with hardware that delivered improved services and enhanced performance. CRE 2.0, the recent adoption of appropriate technologies, consisted of CaFM and other software suites, designed to act as point solutions for property management, maintenance, energy management, occupant applications, etc. This new decade will see the rise of CRE3.0 - an innovative new data-driven model in commercial real estate operations, that is now making it possible to optimize asset performance and achieve centralized and real-time management, at an enterprise scale”, says Prabhu Ramachandran, Founder & CEO, Facilio Inc.
The report touches upon the current state of operations and the priorities of CRE owners across the US, Middle East and India markets, and highlights the growing demand for data-driven operations to drive operational efficiencies and optimization. It broadly identifies the opportunities and challenges for commercial real estate owners as:
Huge opportunity for technology to optimize operational spend:
The primary frustration faced by CRE’s today is rising maintenance cost, influenced by automation data silos in operating technology (OT), dealing with dead-end tools for the expansive variety of functions (maintenance management to asset performance to the tenant experience), and limited access to portfolio-wide operational information in real-time.
Maximizing efficiency, energy management and customer experiences is a top CRE priority:
Real estate portfolio owners are dealing with inflexible tools to manage primary business outcomes, such as maintenance, asset optimization, and delivering outstanding tenant experiences.
CRE’s understand the need to unify and harness operational data at enterprise scale:
Currently, management of assets and optimization of processes is limited by the lack of ready access to portfolio-wide operational information in real-time.
The CRE 3.0 report also reveals that Connected Building portfolios and a coherent end-to-end view of workflows and processes is set to become the norm in 2020, and onwards. In the context of the Middle East, a rise in the number of properties coming to market, the emergence of new segments, regulatory reforms, a Smart City vision and discerning customers are driving a major transformation in the industry. “As we move into a new decade of change and evolution, it is increasingly clear that CREs need to focus on leveraging technology to boost building performance, secure maximum uptime, and provide seamless tenant experience across portfolios. And this report provides an eye-opening look at the current state as well a vision of the transformational impact of data-driven operations”, concludes Prabhu.
About the Report: 2020 State of CRE Operations 3.0 :
You can download the full report and analysis here.
Headquartered in New York (USA), with operations in UAE and India, Facilio is the world’s first and only IoT and data-driven enterprise platform for real-time, multi-site Facilities Building Operations & Maintenance (O&M). Its optimization software combines IoT, AI and Machine Learning technologies to provide the construction and commercial real estate businesses unified and predictive command and control, across their entire operation.
For more information please visit https://facilio.com/