Facilio Inc., unified IoT, AI and ML-enabled data-driven enterprise platform for Facilities Management, released an insightful report titled ‘2020 State of CRE Operations 3.0’. The global benchmarking study uncovers gaps & trends in CRE operations, citing Tenant experience, Energy management & Data-driven operations as top priorities for commercial real estate owners in 2020.
In the report, Facilio has labeled the new era of data-driven operations & maintenance in commercial real estate as ‘CRE 3.0’. This is marked by the 3-pronged industry approach on:
- Data extraction out of siloed building functions
- Data aggregation on a portfolio-central platform
- Usage of modular apps to perform data-driven operations acting on the insight-rich operational data to enable predictive portfolio operations.
“Buildings are a powerhouse of data. The automation driven upgrade of commercial real estate assets, a few decades ago which was labeled as CRE 1.0, focused on embedding buildings with hardware that delivered improved services and enhanced performance. The recent adoption of appropriate technologies labeled as CRE 2.0, consisted of CaFM (computer assisted Facility Management) and other software suites, designed to act as point solutions for property management, maintenance, energy management, occupant applications, etc. Now with the rise of CRE3.0 – an innovative new data-driven model in commercial real estate operations, which is making it possible to optimize asset performance and achieve centralized and real-time management, at an enterprise scale”, says Prabhu Ramachandran, Founder & CEO, Facilio Inc.
The report touches upon the current state of operations and the priorities of CRE owners across the US, Middle East and India markets, and highlights the growing demand for data-driven operations to drive operational efficiencies and optimization. It broadly identifies the opportunities and challenges for commercial real estate owners as:
- 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 a coherent end-to-end view of workflows and processes is set to become the norm in 2020, and onwards. In the context of the Middle East, a rise in the number of properties coming to market, the emergence of new segments, regulatory reforms, a Smart City vision and discerning customers are driving a major transformation in the industry. “As we move into a new decade of change and evolution, it is increasingly clear that 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.