An Initiative by Concert Technologies
From Legacy Systems to IoT-Enabled Buildings: CRE Best Practices for Integration
Many CRE ownership groups are implementing smart building technologies to improve efficiency, gain operational insights, and enhance the tenant experience. According to Forrester Research's The Impact of IoT on Real Estate: 2024 Trends and Insights, IoT devices contribute to operational cost savings of 10-15% in commercial real estate, while properties with integrated IoT technologies often experience valuation increases of 7-10%. Implementing these smart building technologies positions commercial office properties as modern, attractive spaces for tenants seeking advanced amenities, sustainability features, and enhanced workplace environments.
CRE owners and property managers often face challenges when integrating siloed building systems. Legacy systems—whether HVAC, lighting, access control, or energy management—typically rely on proprietary protocols that limit interoperability and prevent systems from ‘speaking’ to devices from different manufacturers. While they provide robust security, they limit flexibility and scalability. Retrofitting older buildings to support new technologies often require costly customized solutions to achieve interoperability.
To address these issues, many ownership groups are adopting IoT-enabled devices with open, scalable architecture. Open protocols enable siloed systems to communicate through a shared language, simplifying data sharing and integration. Open protocols offer greater adaptability but may introduce security risks. Despite these advantages, most manufacturers still favor proprietary protocols, posing ongoing challenges for system-wide integration of legacy systems.
So how do you determine which IoT devices will yield the best return on investment (ROI) for a commercial real estate (CRE) ownership group when trying to determine how to converge legacy systems in an existing building? A clear strategy and structured approach are crucial.
Here are some starting points and best practices we utilize through our Tech Ready Program to help CRE groups make smart decisions:
1. Begin with a Needs Assessment
Conducting a comprehensive baseline assessment of the buildings infrastructure to see what you currently have and what you can support in the future. This comprehensive assessment will help determine your buildings integration needs as we assess the current technology and identify opportunities for system upgrades. Start by identifying areas where IoT could reduce operational costs, enhance energy efficiency, or improve tenant experiences. Ensure the IoT solutions you select can integrate well with existing systems and have the analytics tools necessary to translate data into actionable insights.
2. Pilot Testing:
Test selected IoT solutions in a limited capacity before large-scale deployment. This can help CRE groups gauge the feasibility, performance, and potential ROI of different IoT devices without significant upfront investment. Pilot programs also allow for gathering initial performance data, making adjustments before a full rollout.
Connect With Us
Contact A TRB Rep
3. Evaluate Long-Term Maintenance and Scalability:
IoT projects require ongoing maintenance and periodic updates. Choosing devices and platforms that are both scalable and offer robust security allows for future technology integration with minimal disruptions. Additionally, consider partnering with a full-service IoT partner who can manage the project end-to-end, from deployment to continuous support, which can simplify operations and improve ROI in the long run as they maintain up-to-date documentation and provide ongoing infrastructure maintenance, ensuring that new IoT devices can be integrated quickly and troubleshooting is efficient.
4. The Physical Impact on Infrastructure:
The installation and integration of IoT devices can significantly impact the physical infrastructure of commercial office buildings by necessitating changes to both the building's layout and its underlying systems. IoT devices require the installation of a complex network of wiring, communication equipment, and power sources. This often means retrofitting existing spaces with new conduits, cable trays, and server rooms to accommodate these devices. Depending on the scope of the IoT deployment, additional electrical circuits, data points, or even upgrades to the building's connectivity infrastructure may be required to support the increased demand. Furthermore, the integration of these systems may involve upgrading existing building management systems (BMS) to process and manage the vast amounts of data generated by IoT devices. Over time, buildings may need to adopt a more flexible infrastructure to accommodate future IoT advancements, making infrastructure planning an essential component of modern CRE development and renovation. It’s imperative to have the right partners in place to document and maintain this ever-changing infrastructure and to also help advise on best steps moving forward. A quality smart building partner can also help provide building management with access to other proven partners and technologies to ensure best-in-class connectivity.
As CRE ownership groups navigate the difficulties of system integration, our Tech Ready approach ensures their properties are optimized for current and future technologies, creating a competitive edge that enhances tenant satisfaction, operational efficiency, and long-term property value. With a smart building strategy that tackles interoperability challenges and embraces scalable, secure, and future-proof solutions, CRE ownership can capitalize on the full potential of their smart building investments.
The Tech Ready Buildings Difference
For new equipment installations or to upgrade your existing technology, we’ve got you covered. Completing over 650,000 technology installations, Concert Technologies’ Tech Ready Buildings initiative has the experience of working with the industry’s top providers. We will actively support the integration of new digital technologies and leverage on-going connectivity automation to enhance building performance and occupant experience, Making Your Building Smarter Today Than Yesterday. As a Trech Ready Building, you receive a comprehensive solution that ensures your building’s connectivity today and for years to come.