Los Angeles has long been on the cutting edge of innovation, making for one of the most dynamic commercial real estate markets in the country (and maybe the world!).
But today, a new type of transformation is reshaping the city’s commercial landscape, and property owners, management companies, and investors need to take note.
We’re talking about smart building technology. IoT, connected systems, and automation are changing how properties are managed, introducing new efficiencies that help meet sustainability goals, reduce costs, improve tenant retention, and increase asset value.
Today, we’re going to look at the smart building trend and how it’s impacting commercial real estate, building management, and the tenant experience.
What is Smart Building Technology, and Why Does it Matter in LA?
Smart buildings leverage integrated systems, sensors, and automation tools (hardware and software) to optimize and automate building performance.
Essentially, smart buildings can manage just about everything the building needs to accomplish, from regulating climate control and lighting systems to managing access and collecting usage data to inform maintenance and structural improvements.
Running a building more efficiently is always the goal for any property manager and building owner. Keeping energy costs to a minimum and preserving the useful life of HVAC and other systems can increase profits, reduce overhead, and minimize wasted effort while delivering pinpoint accurate metrics that would otherwise be a guessing game.
Cloud-based smart building control systems serve as a hub, enabling property managers to view data from a single dashboard without necessarily being on site. For companies managing multiple properties or vast complexes, like college campuses, medical centers, factories, or correctional facilities, this enables strategic oversight without adding headcount.
All things considered, the benefits are significant. And as technology advances, we can expect more meaningful improvements to the toolkit.
SmartLA 2028 and Renewable Energy Plans
As for why smart buildings matter so much in LA, we must consider that we live in a progressive city that values innovation and sustainability.
In 2020, the city of Los Angeles handed down a smart building initiative aimed at modernizing urban infrastructure ahead of the 2028 Olympic Games. SmartLA 2028 focuses on sustainability, traffic management, and energy efficiency, with 28 key traffic and infrastructure projects aimed at creating a more connected, sustainable city.
Beyond the smart city plans, updated LA building codes set the bar pretty high for energy efficiency, prompting owners to invest more strategically in digital systems to help them meet these mandates. The city is aiming for 100% renewable energy by 2045, which will entail replacing gas furnaces with heat pumps and prioritizing electrification through solar energy, among other things.
The local tech sector is also a catalyst, as Los Angeles is home to many leading smart-building technology companies, making the process more accessible while keeping it local.
Core Features of Smart Buildings in Los Angeles
Of all the possible smart building technologies, a few tend to be most critical for commercial properties.
- Energy management systems. A combination of sensors and automation can help to optimize energy use, partly by detecting occupancy and partly by time of day and expected use.
For example, sensors can detect human presence in a space and activate HVAC systems and lighting accordingly to optimize energy use. Many buildings also integrate solar panels, further reducing costs.
- Security and access can be controlled using biometric data (like facial recognition) or NFC-enabled fobs to optimize and automate access. The smart building dashboard enables security personnel to monitor who comes and goes remotely, and the collected data can help track access in the event of an incident.
- IoT sensors can be used for various purposes. In the parking garage or gateways to detect vehicle presence and ensure safety, on machinery to monitor performance and enable predictive maintenance, and to monitor occupancy throughout the building to optimize air quality and comfort.
- Integrated communication systems enable tenants to submit maintenance requests, reserve amenities, and receive timely alerts about events and emergencies.
The benefits of smart tech integration extend to both building management and tenants. Having a connected system allows for more efficient use of staff time and deeper insights into where attention is required.
For example, property managers can gain detailed insights into how spaces are used. This information can inform space planning, maintenance schedules, and resource allocation.
From a tenant’s standpoint, the ability to control their environment via a smartphone or a hub in their unit ensures comfort, safety, and convenience. And, as we all know, a happy tenant is more likely to renew, bringing long-term value to the building.
Local Code Compliance
Given that sustainability is a major concern for the city, compliance with modern codes is mandatory. Smart building technology makes it easier for properties to meet these standards as they’ll know precisely where to focus their attention.
Smart systems can track energy usage and generate compliance reports in real time, further reducing administrative burden.
More efficient buildings may also qualify for green building status, boosting marketability and even qualifying for government rebates and incentives.
Challenges and Considerations for Property Managers
Understandably, new technology will require updated skill sets. Choosing technologies that will offer the most value and return on investment is the first step. Ensuring systems are properly integrated and maintained will help to maximize value and efficiency.
While the initial costs can be considerable, the long-term advantages should far outweigh any caveats. Keep in mind that as the technology matures, smart buildings will be preferred by tenants, will increase in value, and lead the market in just about every way.
By its very nature, Los Angeles is innovative and competitive. Smart building tech is evolving fast, but it’s not enough to have the technology; you also need property managers who understand how to use it to its fullest advantage.
Speak to the experts at Belwood Properties today, and let’s talk tech.
