NEW YORK, New York, United States, 25 September, 2024: The commercial real estate sector faces unprecedented challenges, and against the backdrop of the New York Climate Week 2024, the movement toward smarter buildings is top of the mind, according to Johnson Controls (JCI). The company announced its recently released spotlight report, “Cracking The Smart Buildings Code: A Spotlight On Retail And Commercial Real Estate,” building on a 2023 commissioned study conducted by Forrester Consulting on behalf of JCI. The report reveals that investments in smart buildings are essential for leaders aiming to enhance sustainability and security and to save money, JCI said.

Vijay Sankaran, Vice President and Chief Technology Officer, JCI said: “Smart buildings are not just a trend; there is growing recognition they are a necessity for modern commercial real estate. This report highlights the urgent need for integrated systems and expert partners to navigate the complexities of today’s commercial real estate market to achieve long-term success.”

JCI said the digitalisation of buildings provides an immense opportunity to gain a clearer picture of the operation of facilities to create sustainable, healthy and safe environments – a critical differentiator for both commercial real estate tenants and buyers. Johnson Controls said 75% of commercial real estate and retail leaders say smart buildings are important to accelerating their digital transformation efforts. Nearly two-thirds of leaders, JCI said, indicate smart buildings are important for reducing costs, accelerating sustainability initiatives and driving business growth. JCI said these results reveal that retail and commercial real estate leaders are seeking outcomes that have a positive impact for building owners, occupants and the bottom line.

According to JCI, additional key findings include:

• Competitive Differentiator: Investing in smart buildings is a competitive differentiator, as smart buildings not only help commercial real estate and retail leaders attain sustainable, secure and efficient outcomes, but they also competitively differentiate their facilities in the market.
• Integration Gaps: Only 13% of commercial real estate and retail leaders say they have fully integrated building systems, leading to inefficiencies and increased risks. This lack of integrated data and insight is reducing operating efficiencies (62%), reducing customer loyalty (59%) and increasing regulatory penalties (57%).
• Vital Insights: Building data is crucial for decision-making across various departments, including security, sustainability and facilities management, and many leaders recognise the current risks they face by having limited data.
• Partner Expertise: Leaders seek partners with advanced technology, integration capabilities and industry experience to drive smart building initiatives.

JCI said it is optimised to be the comprehensive solutions provider for commercial buildings, as a one-stop-shop for leaders looking for a partner with the technology and industry experience to drive meaningful outcomes. Julie Brandt, President of Building Solutions North America, JCI, said: “As a leader in the smart buildings industry, we have a comprehensive understanding of how connected, data-driven solutions provide deeper insights into a building’s performance and how we can optimize equipment performance and enable proactive services. This report confirms what we’re already hearing from our customers – that smart buildings are foundational to the design, operation, and maintenance of indoor environments, ultimately driving value.”