While the idea of intelligent buildings has been around for decades, the practice of making buildings with these qualities has recently become much more vital for both investors and commercial property managers.
Initially, the idea revolved around properties that were equipped with heating, ventilation and air conditioning systems with electronic controls during the 1970s, according to the National Association of Realtors. However, this picked up into the 1980s and 1990s as lighting and security systems improved. Now, as web connectivity has grown, these intelligent buildings have taken on a completely new meaning.
Intelligent buildings have significant benefits for the cost of construction and operation. Much of this is due to not only the continued demand from tenants to have the most modern buildings possible, but also because the properties can save money on energy. Costs to continually update the building over the years can be significant, but making improvements in space efficiency and energy usage can be quite manageable.
When looking at the United States, some cities have already seen significant demand for these properties. NAR’s Intelligent Building Demand Index showed that San Jose was the top metropolitan statistical area in the country for intelligent building demand, with an index value of 98.4. Following was Cedar Rapids, Iowa, which had a total of 85.2 and Boulder-Longmont, Colorado, which was at 76.4. Albuquerque finished in fourth spot, with 63.6, while Raleigh-Durham-Chapel Hill had a score of 59.9 in fifth.
At present, investors do not specifically single out these types of properties, but NAR adds that those who do take advantage may be able to have a significant step on these technologically superior properties. By monitoring what tenants want, investors will get a better idea of how viable these properties are in their local market.
