Shedding light on your questions about smart buildings
The way we interact with our built environment is evolving. As organizations increasingly seek to enhance efficiency, sustainability and user experience, understanding the intricacies of smart building technology has become crucial for investors and occupiers alike.
We’ve enlisted the expertise of two JLL Technology Advisors: Michael Ewert, Global Head of Technology Advisory Services and Dr. Matthew Marson, Managing Director – Technology Advisory Services, EMEA to shed light on some FAQs about smart places.
What is a smart building and what are its core objectives?
Michael Ewert (ME): A smart building is an evolved asset that uses technology to create a responsive ecosystem adapting to the needs of its occupants, particularly in hybrid work environments. The ultimate aim is to enhance occupant experience, well-being and productivity, whether they are working onsite or remotely.
Matthew Marson (MM): Originally focused on energy efficiency, smart buildings now prioritize three “E’s”: Experience, Environment and Efficiency. They leverage technology to automate energy consumption reductions, proactively track building assets, adhere to regulations and support sustainability goals.
Why are organizations increasingly investing in smart building technologies?
ME: The primary drivers for investing in smart building technologies fall into three overarching categories: creating equitable and hybrid workplaces, achieving efficiency and savings, and demonstrating measurable Environmental, Social, and Governance (ESG) value. Smart buildings cater to the demands of a modern workforce by offering personalized environments, supporting diverse work styles and seamlessly integrating digital and physical spaces.
MM: They also enable cost savings through optimized energy use and predictive maintenance. And, perhaps most critically, smart technologies provide data for transparent reporting, including measuring against sustainability targets.
What is the difference between IT and OT in the context of smart buildings, and why is understanding this distinction important for tenants?
MM: In smart buildings, Information Technology (IT) generally manages enterprise data and applications (like email, sales tracking, and employee information), typically overseen by an organization’s IT department. Operational Technology (OT), on the other hand, pertains to the hardware and software that control and monitor the physical building (such as sensors or access control systems).
ME: For tenants and occupiers, understanding this distinction is crucial because responsibilities for OT within their leased space might fall to their corporate real estate (CRE) department. Clear understanding and collaboration between IT and CRE are essential for ensuring both data-driven and physical infrastructure needs are met, facilitating cybersecurity, and strategically utilizing building data.
What are “smart-ready” buildings and why should tenants prioritize them?
ME: A “smart-ready” building possesses a foundational set of technologies, such as high-speed connectivity, integrated building management systems and a secure IT/OT integration platform, that enable primary smart building use cases.
MM: As a tenant or occupier, CRE leaders should prioritize smart-ready buildings because they provide a future-focused foundation that allows a company to cater to dynamic work styles and operational efficiencies, regardless of their enterprise tech stack. This framework also ensures the building infrastructure can adapt to future technological innovations, allowing you to reduce the cost of future upgrades, and preventing obsolescence.
How should tenants approach developing a smart building strategy for their leased space?
ME: This is a great question! CRE leaders should begin by clearly defining their desired outcomes and experiences within the smart building, focusing on specific use cases that will support their organizational goals. The strategy should align technology investments with business objectives, prioritizing solutions that address impactful problems. Collaboration with your landlord and a clear understanding of lease agreements are also critical.
MM: Even as a tenant, when developing your strategy, you should consider how smart technologies will improve interactions and operational processes for all stakeholders. Avoid the trap of being swayed by individual gadgets! Your strategy should focus on using technology as an enabler to achieve clear, measurable goals related to operational efficiency, tenant experience and/or sustainability.
What is the role of a Smart Building Manager and why is this role becoming increasingly important?
ME: A Smart Building Manager (SBM) is a technology steward responsible for the administration, maintenance, and enhancement of smart solutions across a property portfolio. Their role is crucial in large smart buildings as they bridge the gap between traditional facilities management (FM) and the specialized technical support required by integrated smart systems. SBMs drive operational efficiencies, improve user experience and ensure smart technologies deliver on their promises by providing technical guidance, coordinating with vendors, mitigating risks, and driving continuous improvement. As smart buildings become more complex, the SBM’s expertise is vital for maximizing the value and performance of these intelligent assets.
How should tenants navigate data management and privacy considerations within a smart building?
MM: Tenants must understand what data is collected within the smart building and for what purposes, ensuring they comply with data privacy regulations like GDPR and CCPA. This requires collaboration with legal, IT and HR departments. Implementing best practices for data security, such as encryption and access controls, is essential to protect tenant and user privacy. Tenants also need to understand and respect user rights regarding their data, obtaining informed consent for data collection and providing options for users to control their personal information. Proactive data management and privacy practices are not just legal obligations but strategic imperatives that build trust and enable user-centric building management.
What is the importance of planning for ongoing support and maintenance of smart building technologies?
ME: As organizations implement new operational technology (OT) systems, planning for ongoing support, licensing and maintenance is critical for the long-term success of smart building initiatives. While upskilling internal teams is important, the complexity of these systems often necessitates engaging third-party support for tasks like network management, software upgrades, and security patches.
MM: Exactly. Whether IT takes on OT support or FM relies on external providers, a proactive support framework is essential to ensure the health, longevity, and security of the OT systems. This planning should occur in the early stages of a smart building project to ensure continuous delivery of intended efficiencies, experiences, and environmental benefits.
Get all the details in our Smart Buildings Handbook for Tenants/Occupiers.
Looking for insights as an investor, owner or landlord? We’ve created a Smart Buildings Handbook for you, too.
More about our smart experts
Michael Ewert, LL.M., is the Global Head of Technology Advisory Services at JLL. He is an accomplished strategist who blends technology and real estate expertise to drive innovation and business-centric solutions. Recognized for navigating complex turnarounds, shape adaptable business models by balancing strategic insight and execution.
Matthew Marson, Ph.D., is the EMEA Managing Director for JLL Technology Advisory Services. As a recognized smart buildings and cities leader, he specializes in leveraging technology to enhance the built environment. Dr. Marson brings extensive experience in developing technology masterplans for iconic projects in the Middle East, and is the author of The Smart Building Advantage which scientifically decodes the value of technology for real estate.
