The global benchmarking study uncovers gaps & trends in commercial office operations, citing tenant experience, sustainability & data-driven operations as top priorities for owners in 2020.
NEW YORK, 02 – 14 – 2020 Facilio Inc., an AI-driven enterprise platform for Building Operations and Maintenance platform for the real estate industry, recently released an insightful report titled ‘2020 State of CRE Operations 3.0.’ Facilio has labeled the new era of data-driven operations & maintenance in commercial real estate as ‘CRE 3.0,’ marked by the 3-pronged industry focus on data extraction out of siloed building functions; data aggregation on a portfolio-central platform; as well as use of modular apps to perform data-driven operations acting on the insight-rich operational data to enable predictive portfolio operations.
- 77% CRE owners cite tenant experience as a priority, allocate 39% operational spend for the same
- Energy ROI takes precedence, driving 65% of OPex towards data-driven energy enhancements
- 40% of tech investment being directed into DATA: centralization, IoT-driven predictive analytics & portfolio-wide intelligence
- Report finds 60% of maintenance spend is on hard services, with at least 20% savings anticipated by combining predictive analysis with automated resolution
“Buildings are a powerhouse of data. The automation driven upgrade of commercial real estate assets, of a few decades ago – labeled CRE 1.0 – was focused on embedding buildings with hardware that delivered improved performance and service. CRE 2.0 was the adoption of point solutions for property management, maintenance, energy savings and tenant engagement among others. This new decade will see the rise of CRE 3.0 – an innovative new data-driven model that allows real-time visibility into portfolio operations to optimize asset performance,” says Prabhu Ramachandran, Founder & CEO, Facilio Inc.
The report highlights the growing demand for data-driven operations & identifies opportunities and priorities for commercial real estate owners. Key findings include:
- Huge opportunity for technology to optimize operational spend: The primary frustration faced by CRE’s today is rising maintenance cost, influenced by automation data silos in operating technology (OT), dealing with dead-end tools for the expansive variety of functions (maintenance management to asset performance to the tenant experience), and limited access to portfolio-wide operational information in real-time.
- Maximizing efficiency, energy management and customer experiences is a top CRE priority: Real estate portfolio owners are dealing with inflexible tools to manage primary business outcomes, such as maintenance, asset optimization, and delivering outstanding tenant experiences.
- CRE’s understand the need to unify and harness operational data at enterprise scale: Currently, management of assets and optimization of processes is limited by the lack of ready access to portfolio-wide operational information in real-time.
The CRE 3.0 report also reveals that Connected Building portfolios and end-to-end process views will start becoming the norm from 2020 onwards. New assets coming to the market, the heightened expectations of tenants & the millennial workforce, regulatory reforms, urgency around sustainability initiatives are driving a major transformation in the industry. “As we move into a new decade, it is increasingly clear that technology will have an outsized impact on asset values. CREs need to focus on leveraging technology to boost building performance, secure maximum uptime, and provide seamless tenant experience across portfolios. And this report provides an eye-opening look at the current state as well a vision of the transformational impact of data-driven operations,” concludes Prabhu.