What is the general perception of sustainability among regional real estate stakeholders?
There is no denying that sustainability is being heard within conversations across the real estate industry. A solution however is many times absent from these talks and most are left with a feeling that sustainability is a difficult, expensive task best left to only the largest property investors.
However, real technological magic like artificial intelligence (AI) and machine learning, working in tandem with the massive amounts of data being achieved by now affordable sensors with easy to deploy IoT networks has completely changed sustainability conversations.
And we are witnessing an uptake of IoT and AI-based solutions aimed at integrating building systems, enabling data-driven operations, and deriving insights on energy consumption, building a stronger business case for sustainability.
What, according to you, is the single biggest roadblock to large-scale sustainable transformation? How to address this challenge?
We feel a lack of education and dispelling myths created by the past are the largest barriers to the adoption of technology for sustainable transformation. In a marketplace formerly dominated by OEM’s, property owners have long been promised “savings” while being given tools that required far more cost and internal bandwidth than many were aware of upfront and it resulted in many software technologies remaining underutilised or inefficient.
Further, with real estate being capital-intensive, there is a deep-seated aversion to digital transformation based on a perpetuated belief that it is a costly affair. Many are not privy to the potential ROI and the multiple other unquantifiable, positive outcomes they stand to achieve with digital transformation.
To address this challenge, we launched the Sustainability Finance Model in partnership with large European investment groups, to help fully fund the retrofitting and BAS upgrading of existing buildings. As the upgrades entail zero capital expenditure (capex), stakeholders will be more incentivised to embrace sustainable transformations.
Why do old buildings and systems need to be updated/retrofitted with IoT and AI-based solutions? What can upgrades achieve that is not achievable already?
Legacy building management systems (BMS) were not built to address modern-day occupancy levels, indoor environmental quality (IEQ), amenities, etc. Additionally, they require a large number of skilled manpower to operate; function in silos, so owners/operators are without a holistic view of their portfolios; and mostly entail a capex intensive overhaul of the entire hardware to address any inefficiencies.
Instead, IoT and AI-based smart retrofits can integrate existing systems, centralise the operations, bring greater visibility into electromechanical performances, reduce dependencies on manpower, and provide insights pertaining to inefficient processes, faulty equipment, and excessive energy usage.
Further, the data-driven AI/ML approach is adaptive; not disruptive. IoT also enhances the systems’ programmability and interoperability, thereby upholding their ‘right to repair’ thereon. Hence we call this the ‘Android Approach’ to buildings.
What are the achievable outcomes associated with the adoption of IoT and AI-based solutions? How can they rationalise the ROI?
Multiple projects of Netix.ai demonstrate financial ROIs like reduced operating costs around energy, equipment lifetime, and on-premises resources needed. Additionally, one of the less tangible ROI’s that takes a few months to begin experiencing is the reduction in stress and anxiety on your buildings operational team.
Beyond that there is a social ROI that will allow any user of these technologies to market their definitive effort towards sustainable operation and even provides businesses with access to the proof around their investments.
Netix.ai provides dashboarding that can be in the lobby of any building as a testament to this social awareness as well as providing you with the sensors (data) you need to give real evidence.
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