Your job should be to find how technology can replace you and then seek to advance the initiative to actually do it…
One of the things we should all be considering is how technology will impact our commercial real estate (CRE) portfolios. Technology is a smart way to harness the power of data, analytics, AI, innovation, and, most importantly, automation—so many things can be made better using the innovation of technology. In CRE, these opportunities are like low-hanging fruit—some perfectly suited for your building needs and others completely inappropriate, too costly, not tested, perhaps too “out there”—with lots in between.
We would all proceed if time, knowledge, and resources were infinite, but this allocation is uneven and constrained. Disruption in the CRE space is inevitable and happening right now. Perhaps we should disrupt things ourselves rather than wait to be disrupted by others? Operating on our own timelines and priorities seems better than being forced to act. Perhaps adding some bits of disruption regularly into our lives and work will prepare us to innovate more easily.
Looking at the tasks involved in doing our job is a great place to start. How we organize ourselves to act on the right information, apply appropriate resources to solve problems and follow through to see results is interesting. Artificial intelligence and its variations, such as generative AI, can do amazing things today. Could this replace us? Certainly. Along our journey of exploration, someone or something that can do our job better than us might replace us unless we act intentionally to do better ourselves with the same tools. Disrupt your status quo.
My advice is to start small. Find the tasks in our jobs that are important to your success and are tied to your unique skills, and find technologies that can do it faster, better, and with fewer resources. Ask someone young in your business how that would do your job better using technology. Do a search on the Internet for your unique skills—drawing, analytics, data crunching, assessing risk. Is there an AI tool doing it better? Maybe there is a software program that does it faster and more comprehensively? Perhaps there is an expert out there focusing on a tech-driven niche solution? Investigate, explore, and challenge yourself.
What would have to be true for this approach to work for you? Innovation doesn’t require permission, but requires you to change something. Book time into your schedule to think, be vulnerable to disruption, and find novel ways to replace yourself. Along the way, you will likely be stronger, more valued, and a better contributor to success in your business.
Intelligent Buildings offers CRE technology services that can help you decrease inefficiencies and cyber risk.
Operational technology (OT) asset management has become more than a back-office function—it’s a strategic lever for driving net operating income (NOI), improving tenant experience, and future-proofing portfolios. In this four-part blog series, we’ll break down the key capabilities that matter most and share actionable insights from the field.
Part 1: Efficiency – How streamlined OT asset management reduces costs, downtime, and complexity.
Part 2: AI – Using predictive analytics to move from reactive maintenance to proactive performance optimization.
Part 3: Integration – The power of connecting systems, data, and workflows into a single, reliable source of truth.
Part 4: Simplicity at Scale – How to maintain clarity and control as operations expand across multiple sites.
Why Asset Management Matters More Than Ever
The days of managing OT systems with spreadsheets, guesswork, and isolated platforms are over. Commercial real estate (CRE) leaders who embrace modern asset management strategies are driving measurable results—lower operational costs, improved equipment performance, and better tenant satisfaction.
This series will explore how a data-driven, tech-enabled approach to OT asset management can:
Cut operational costs by identifying and eliminating hidden inefficiencies.
Leverage AI-powered insights to optimize performance and reduce equipment failures.
Simplify system integration without disrupting existing operations.
Scale these efficiencies across entire portfolios with minimal complexity.
PART 1 – Maximizing Efficiency in OT Asset Management
The Efficiency Imperative in OT Asset Management
The commercial real estate landscape is evolving rapidly, requiring asset and portfolio managers to rethink how they manage their OT infrastructure.
With high interest rates, operational costs rising, and investors demanding better NOI performance, efficiency is no longer a luxury—it’s a financial and competitive necessity. Asset managers must optimize OT asset management to drive cost savings, enhance building performance, and future-proof portfolios against economic uncertainty.
This blog will explore how efficiency in OT asset management can drive cost savings, reduce downtime, and enhance building performance.
The Hidden Inefficiencies in OT Asset Management
CRE portfolios are built on complex, aging OT infrastructures that often lack a centralized, real-time view of asset inventory. Many asset and portfolio managers still rely on fragmented systems, manual spreadsheets, and siloed software solutions, leading to untracked equipment failures, higher operational costs, and reactive maintenance strategies. Labor shortages exacerbate the problem—CRE executives also cite a lack of skilled building engineers as a critical challenge, forcing overstretched teams to manage OT assets inefficiently.
Compounding these inefficiencies, third-party property managers frequently miss service-level agreements (SLAs), leaving asset managers without the service quality they’re paying for. Without automation and accountability, buildings operate with hidden inefficiencies that drain resources and degrade asset performance.
At the same time, the industry is flooded with PropTech startups pitching AI-driven decarbonization, predictive maintenance, and ESG reporting solutions. Yet, most of these technologies fail to deliver on their promises because of long implementation timelines and misalignment with existing systems. More often, CRE technology investments take more than 9-12 months to reach full deployment, often resulting in stalled adoption and wasted capital. Adding to the complexity, many IT teams mistakenly apply traditional IT cybersecurity frameworks to OT systems, exposing critical infrastructure like HVAC, elevators, and access control to cyber threats. The rapid rise in ransomware attacks on building systems highlights the urgency of addressing OT security as a distinct challenge rather than an IT afterthought.
With interest rates still high, operational costs rising, and investor pressure mounting on NOI, inefficiencies in OT asset management are no longer just operational hurdles—they’re direct financial risks. The CRE firms that thrive in this environment will be those that adopt automation for real-time asset visibility, implement OT-specific cybersecurity strategies, and demand performance-driven accountability from third-party managers.
Efficiency isn’t just about cost-cutting—it’s about ensuring every asset in the portfolio is optimized for long-term value and resilience.
Strategies to Enhance Efficiency in OT Asset Management
For asset and portfolio managers, having a clear and real-time view of OT assets is essential for operational efficiency and cost control. However, many organizations still rely on outdated spreadsheets and manual tracking, leading to inefficiencies, unexpected downtime, and unnecessary capital expenditures. Automating asset inventory and monitoring through Internet of Things (IoT)-enabled solutions can provide continuous visibility into asset performance without requiring additional headcount. Third-party firms specializing in turnkey OT asset management solutions can help streamline this process by auditing existing infrastructure, deploying sensor-based monitoring, and integrating data into a centralized system—allowing asset managers to make informed, real-time decisions.
The promise of a single pane of glass (SPOG) sounds appealing. Still, most building engineers and operators currently manage multiple platforms, dashboards, and vendor logins, creating data overload instead of actionable insights. Rather than adding another software layer, asset managers should focus on leveraging existing building systems while integrating key PropTech data through strategic application programming interface (API) connections. Middleware platforms and data aggregators can help pull critical insights into a unified interface, eliminating the need to log into multiple dashboards while ensuring that only relevant metrics—such as energy consumption, system performance, and predictive maintenance alerts—are surfaced. This approach allows for smarter, more efficient decision-making without adding unnecessary complexity or cost.
Predictive maintenance has the potential to optimize repair schedules, reduce downtime, and extend asset lifespan, but many solutions in the market require long implementation cycles and uncertain ROI. Asset managers should focus on proven, high-impact AI use cases that can be integrated into existing maintenance workflows to minimize risk. For example, AI-driven fault detection can be applied to HVAC and critical OT assets to identify small issues before they escalate into costly failures. Additionally, service-based maintenance models, where vendors are accountable for performance and uptime, can help shift risk away from the asset owner while ensuring measurable efficiency gains.
By adopting practical automation strategies, consolidating operational data, and applying AI-driven maintenance solutions with a clear return on investment, asset managers can significantly enhance efficiency, reduce operational costs, and improve asset performance without unnecessary complexity.
The Business Case for OT Efficiency
Operational inefficiencies in OT asset management directly impact NOI and long-term asset value. Poorly tracked assets, reactive maintenance, and redundant energy usage inflate costs, while predictive maintenance and real-time monitoring can reduce failures by 30-50%, extend equipment life, and cut energy expenses by 10-20%. Asset managers can reduce operational waste, lower maintenance costs, and drive measurable ROI by shifting from manual oversight to automated, data-driven decision-making.
Beyond cost savings, efficiency is a key risk mitigation tool. As OT cyber threats rise, traditional IT security policies are often insufficient, leaving building systems vulnerable to breaches and operational failures. Adopting Zero-Trust principles—which enforce continuous authentication and network segmentation—helps prevent attacks from spreading and reduces downtime’s financial and reputational risks. Additionally, insurers and corporate tenants increasingly demand OT security and operational resilience, making proactive efficiency strategies a competitive advantage in lease negotiations and asset valuation.
Efficiency isn’t just about cutting costs—it’s about future-proofing. Low-cost strategies, like standardized asset inventories and API-driven data integration, create quick wins without heavy capital investment. At the same time, mid-tier AI-driven fault detection improves uptime and reduces emergency repairs. Larger investments, such as portfolio-wide automation and cloud-enabled monitoring, position assets for long-term resilience. Asset managers can increase NOI today by implementing scalable efficiency solutions while building an adaptive, future-ready portfolio.
Actionable Next Steps for Asset & Portfolio Managers
OT inefficiencies are no longer just an operational burden—they are financial risks that impact NOI, tenant satisfaction, and long-term asset value. To stay competitive, asset and portfolio managers must shift from reactive management to a proactive, data-driven approach that maximizes efficiency, enhances security, and reduces unnecessary costs.
The path forward starts with strategic, incremental improvements that drive measurable impact.
1. Conduct an OT asset inventory assessment to gain visibility into what assets you have, their condition, and how they are managed. Identifying inefficiencies is the first step toward optimizing operations.
2. Invest in centralized asset management strategies that consolidate critical insights, eliminating dashboard fatigue and ensuring asset data is actionable.
3. Implement predictive maintenance and automation to reduce downtime, extend asset lifecycles, and lower operational costs.
4. Collaborate with technology and service providers who understand the intersection of OT, cybersecurity, and real estate operations, ensuring practical and scalable solutions.
By taking these steps, asset managers can reduce costs, mitigate risk, and position their portfolios for long-term success—ensuring their buildings operate smarter, not harder.
Smart building technologies increasingly power Class A commercial real estate (CRE) portfolios, yet many properties still suffer from inefficiencies, hidden costs, and operational risks. Many CRE owners lack an enterprise IT mandate, leaving asset managers and third-party property managers responsible for overseeing building systems, vendor relationships, and security measures without a standardized strategy across their portfolios.
Without centralized oversight, critical inefficiencies arise:
Vendor redundancy—Properties often rely on different contractors for the same services, leading to billing inconsistencies and inflated operational costs.
Reactive maintenance—Many buildings still follow a break-fix model, shortening equipment lifecycles and producing expensive emergency repairs.
Cybersecurity vulnerabilities—Third-party vendors often have unrestricted access to building networks, increasing cyber risk exposure and insurance premiums.
Underutilized building data—Many CRE firms have data-rich but insight-poor operations, missing opportunities to optimize performance and reduce waste.
These inefficiencies aren’t just operational burdens—They directly impact net operating income (NOI). However, a shift toward managed services enables CRE portfolios to eliminate waste, extend asset lifecycles, and scale operational efficiency without additional headcount.
The Hidden Costs of Decentralized CRE Operations
Many CRE owners view their buildings as individual assets rather than part of an interconnected portfolio. While this allows for local decision-making, it creates inefficiencies in vendor management, maintenance strategies, and cybersecurity enforcement, increasing operational costs.
For example, a commercial office portfolio with multiple properties across different markets struggled with vendor inconsistencies and reactive maintenance cycles. Each building relied on different service providers for OT support, leading to billing discrepancies, unpredictable service quality, and gaps in security enforcement.
The financial impact of these inefficiencies is significant. According to the U.S. Department of Energy, predictive maintenance can reduce maintenance costs by 25-30% while cutting equipment downtime by 35-45%, leading to substantial operational savings. Additionally, Schneider Electric reports that preventive maintenance strategies can save 12-18% compared to reactive maintenance models. When applied across a portfolio, these savings translate into $0.50 to $1.00 per square foot in annual savings, directly improving NOI.
After transitioning to a centralized managed services model, the portfolio achieved:
✔ Standardized vendor oversight, reducing contract redundancies and improving service accountability.
✔ Improved response times by streamlining remote access and troubleshooting across all locations.
✔ Better risk mitigation, ensuring all buildings adhered to a consistent cybersecurity and maintenance framework.
This example highlights a common challenge: when CRE portfolios lack a unified OT strategy, costs escalate, operational risks increase, and efficiency opportunities are lost. Asset managers can cut waste, improve system reliability, and ultimately enhance NOI by centralizing building operations through a managed services approach.
Optimizing Staffing Without Increasing Costs
One of the biggest challenges in CRE operations is staffing constraints. Building engineers and property managers are stretched thin, managing tenant needs, vendor coordination, and system troubleshooting—all while lacking a unified platform for secure remote access and system monitoring.
Common inefficiencies in decentralized staffing models:
Onsite teams handle vendor access manually, leading to delays and security risks.
Engineers troubleshoot system issues instead of focusing on tenant satisfaction and long-term asset performance.
Third-party vendors have inconsistent security standards, exposing buildings to potential breaches and compliance failures.
Managed services offload these burdens by providing centralized vendor oversight, secure remote access, and continuous system monitoring—allowing in-house teams to focus on higher-value responsibilities.
📌 Case Study: A multi-market REIT transitioned from property-managed vendor access to a portfolio-wide managed services model, improving consistency in remote access, vendor oversight, and cybersecurity compliance.
The results:
✔ Faster vendor onboarding reduced delays and improved service response times across multiple properties.
✔ Optimized staffing allocation allowed on-site teams to focus on tenant operations rather than manual system oversight.
✔ Strengthened security compliance by implementing centralized access policies and proactive monitoring, mitigating vendor-related cyber risks.
The lesson? Managed services don’t replace teams—They empower them to work smarter.
Extending Asset Lifecycles with Predictive Maintenance
Many CRE portfolios still operate on a reactive maintenance model, where issues are fixed only after they become failures. This leads to increased downtime, higher repair costs, and premature asset replacements.
Key financial risks of reactive maintenance:
Emergency repairs increase annual operational expense (OpEx) by 15-30%, costing up to $1.00 per square foot annually.
Poor maintenance tracking shortens asset lifecycles by 20-40%, forcing premature capital expenditures.
HVAC and system inefficiencies increase energy waste by 10-20%, reducing NOI.
Predictive maintenance powered by real-time asset monitoring can prevent costly failures, improve asset longevity, and optimize repair schedules, all while reducing the burden on on-site staff.
📌Case Study: A CRE portfolio implemented managed services for remote system monitoring and risk detection, enabling early identification of OT network issues before they caused operational disruptions.
✔ Improved asset reliability by proactively addressing system vulnerabilities across multiple buildings.
✔ Reduced emergency repair incidents by shifting from a reactive maintenance model to a proactive, monitored approach.
✔ Enhanced operational continuity, ensuring building systems remained online and tenants experienced fewer service disruptions.
By replacing a reactive approach with predictive monitoring, asset managers can extend the life of critical systems while reducing OpEx.
How Managed Services Directly Boost NOI
For Class A CRE owners without an enterprise IT mandate, inefficient operational management drains NOI. By adopting a managed services model, asset managers can:
What happens when transit-oriented development (TOD), vertical growth, commercial real estate (CRE) technology, and bold vision come together?
What if we stopped viewing technology as an add-on and started embracing it as a core driver of productivity, cost efficiency, and elevated tenant experiences?
Did Beyond Bricks Charlotte 2025 signal a shift in how we approach CRE in Charlotte? Watch this 30-second clip and decide for yourself. 🎥👇
At Beyond Bricks, over 100 leaders from across Charlotte’s CRE ecosystem gathered to explore these questions—not in theory, but through real-world examples that are already shaping the future.
🚆 TOD is fueling urban expansion—connecting people, businesses, and opportunities in ways we’ve never seen before.
🏙 Verticality is redefining how we design, build, and manage spaces—maximizing value per square foot but also increasing complexity.
💡 CRE tech is no longer optional—it’s the key to unlocking higher productivity, lower operating costs, and superior tenant experiences.
This forum, which took place at 110 East, the Most Intelligent Building in North America, showcased what’s possible when vision, risk-taking, and collaboration converge. But this event was about more than just one building—it was about raising awareness and sparking action among Charlotte’s decision-makers while raising over $25,000 for GREAT cause, Stacks+Joules!
We believe this forum was an inflection point in the Queen City—a moment when Charlotte’s leaders, investors, and operators took a step back and saw the bigger picture:
🏗️ Smart buildings are not the future. They are the present.
🔑 The path to higher NOI is smarter operations, not just higher rents.
🌆 Urban growth without CRE innovation is a missed opportunity.
In today’s rapidly evolving commercial real estate (CRE) landscape, technology is no longer a mere operational tool but a strategic asset. Yet, many firms find themselves ensnared in short-term thinking, addressing immediate issues while neglecting long-term technological advancements. This oversight can lead to outdated systems, increased cybersecurity risks, and missed opportunities for innovation.
The Short-Term Trap: Why Real Estate Firms Struggle
Several factors contribute to this short-term focus:
Market Pressures: Asset classes like office and retail are showing early signs of recovery, as tenants are returning to the table and beginning to think about future stability and long-term needs. While not an earth-shattering shift, the market is no longer frozen in fear. Businesses are looking ahead with a longer perspective, which means increased movement in the CRE space.
Reactive Industry Culture: Traditionally, CRE has been slow to change, with a tendency to address problems as they arise rather than proactively planning for future technological needs. It also doesn’t help that technology has often been viewed as complicated, with a lack of clear accountability for innovation. Varied technology expertise and inconsistent implementation skills have frequently led to orphaned ownership of innovation, keeping it beyond traditional focus areas.
Leadership Overload: Executives are often consumed by pressing challenges, such as shifting tenant demands, ESG compliance, and evolving financial conditions. The recent drop in interest rates is unlocking new investment opportunities and improving financial conditions, making capital deployment more feasible. However, this shift also introduces distractions, as leadership focuses on repositioning assets rather than structured long-term technology planning.
The Tipping Point: Moving Beyond the Status Quo
While it is essential to have structured frameworks for planning, the first step toward meaningful change is motivation. Without a compelling reason to move beyond the status quo, even the best strategies will sit unused.
Technology adoption in CRE often stalls because decision-makers don’t see an immediate urgency. However, ignoring innovation today means assets risk falling behind, operational inefficiencies becoming entrenched, and cybersecurity vulnerabilities remaining unchecked.
So, what drives action? It may be competitive pressure, evolving tenant demands, regulatory shifts, or the realization that inaction has consequences. Even small efforts—such as assessing how technology could improve asset performance or thinking through future capabilities—can be the first steps toward long-term success.
Are you prepared for the changes ahead? Waiting too long can mean falling behind. Leaders who embrace this shift will future-proof their assets and careers alike. Taking the time to envision the role of technology in long-term asset success or identifying early opportunities to integrate innovation can build momentum toward meaningful progress.
Ultimately, it is up to owners, portfolio managers, and property managers to stretch beyond familiar ways of thinking. By taking an active role in shaping a technology strategy, they can position their assets, teams, and investments for resilience and success.
Frameworks and strategies are valuable, but they alone are not enough to drive real change. The key to advancing a CRE technology strategy is the motivation to act. Leaders must feel compelled enough—motivated by risk, opportunity, or competitive necessity—to break free from inertia.
For technology to become a core enabler of success, decision-makers must ask: What will happen if we don’t evolve? Without movement, CRE assets risk becoming inefficient, insecure, and uncompetitive. Small steps, such as brainstorming future capabilities or aligning technology with long-term asset goals, can spark progress.
Owners, portfolio managers, and property managers must stretch beyond their immediate comfort zones to drive meaningful transformation. By making strategic technology decisions today, they can ensure long-term resilience, protect asset value, and equip their teams with the tools to navigate an increasingly digital landscape.
Real-World Examples: Technology as a Strategic Asset
Forward-thinking CRE firms are already leveraging technology to position their assets and businesses for long-term success. Here are a few examples:
Boston Properties (BXP) has strategically integrated technology to enhance tenant experiences and sustainability. A key example is their partnership with Attune to implement real-time indoor air quality (IAQ) monitoring across their portfolio. This initiative supports BXP’s healthy building strategy, ensuring optimal conditions for occupants and improving operational efficiency through real-time environmental data.
Blackstone has strategically invested in data centers, recognizing the rising demand for digital infrastructure and artificial intelligence-driven services. In 2021, they acquired QTS Realty Trust for $10 billion, underscoring the growing importance of AI-ready real estate. More recently, in 2024, Blackstone expanded its digital infrastructure portfolio by acquiring AirTrunk, a major data center operator in the Asia-Pacific region, for approximately $16 billion. This move further solidifies Blackstone’s commitment to supporting AI and cloud computing growth.
Stiles Corporation (Stiles), in partnership with Shorenstein Properties, leveraged Intelligent Buildings’ IntelliNet Managed Services to transform their 110 East project in Charlotte, NC, into a smart building showcase. By introducing advanced cybersecurity measures and optimizing network infrastructure, the project not only improved operational efficiency—saving $24,000 annually—but also earned the title of “Most Intelligent Office Building” at RealComm | IBCon 2024. Stiles’ success exemplifies how managed services can position assets as innovation leaders. The 110 East project will also serve as the venue for the upcoming Beyond Bricks event, further reinforcing its role as a hub for real estate innovation.
Introducing the Three Horizons Model
To navigate these challenges, the Three Horizons Model (Baghai, Coley & White) offers a structured approach:
Horizon 1: Focus on optimizing current operations by enhancing existing technologies and processes.
Horizon 2: Expand and evolve by integrating emerging technologies and scaling successful pilots.
Horizon 3: Innovate for the future by investing in cutting-edge solutions and reimagining business models.
Executing Strategy with the Play to Win Framework
Within each horizon, the Play to Win framework (Lafley & Martin) provides a practical method for strategic decision-making:
Winning Aspiration: Define what success looks like.
Where to Play: Identify target markets, segments, or technologies.
How to Win: Determine how to differentiate from competitors.
Capabilities Needed: Assess the resources and expertise required.
Management Systems: Establish metrics to measure and sustain success.
Applying These Frameworks in Practice
Consider a CRE firm aiming to enhance its technology strategy:
Horizon 1 Application: Implement a managed cybersecurity service to protect current assets.
Horizon 2 Application: Pilot energy-efficient technologies in select properties, with plans to scale upon success.
Horizon 3 Application: Invest in research and development for AI-driven building automation to future-proof assets.
By applying the Play to Win framework within each horizon, the firm can make informed decisions, allocate resources effectively, and build the necessary capabilities to achieve its strategic goals.
Conclusion
Overcoming the short-term trap requires a deliberate shift in mindset. By embracing the Three Horizons Model and the Play to Win framework, CRE leaders can move beyond immediate concerns, strategically plan for the future, and ensure their firms remain competitive in an increasingly technology-driven market.
About Us: Intelligent Buildings LLC
Intelligent Buildings is a team of CRE technology specialists, founded in 2004 with a mission to simplify the complex technology challenges within commercial real estate buildings. We focus on three core services: assessing your building technology to give you greater understanding and visibility of your capabilities, providing strategic advice to empower you to make smart decisions, and supporting your buildings connectivity with our 24/7 IntelliNet managed services. Our proactive approach to building technology empowers you to create an elite experience, deliver better performance outcomes, and increase your bottom line—so you can have power over your portfolio.
With expertise, experience, and specialized tools, Intelligent Buildings helps clients address the challenges and opportunities of implementing a robust technology strategy. Learn more at intelligentbuildings.com.
Realcomm’s Beyond Bricks 2025: Shaping the Future of Real Estate
Join us on February 13, 2025 at 110 East—recognized as the Most Intelligent Office Building in North America in 2024—for an exclusive educational session hosted by Realcomm. This event will bring together industry leaders to explore the intersection of transit-oriented development, PropTech, and the future of urban real estate. Discover how Charlotte’s evolving light rail system is reshaping tenant experience and influencing commercial real estate decisions. Delve into the role of PropTech in enhancing operational performance, sustainability, and tenant retention through cutting-edge technologies. From smart automation and connected building systems to innovative design, you’ll gain actionable insights on creating more intelligent, sustainable, and tenant-centric spaces. Don’t miss this opportunity to stay ahead in the rapidly evolving CRE landscape and understand the pivotal role that transit-oriented developments and technology will play in shaping the future of urban development.
For more information and registration, visit Beyond Bricks.
As the new year begins, many of us reflect on how to improve our lives—better health, less stress, smarter habits. Yet research shows that only 10% of people stick to their resolutions. Why? Because success requires intentionality, focus, and clear steps.
This truth doesn’t just apply to individuals; it’s equally relevant in the business world. For real estate owners, 2025 presents an opportunity to reset and resolve to meet the evolving needs of tenants, address market challenges, and position assets for success. The question is: Will you be among the 10% who succeed?
The Economic Landscape: A Tale of Two Cities
The real estate market is evolving rapidly. Economic conditions are favorable—interest rates are stabilizing, the cost of capital is declining, and cap rate compression is creating more competition for high-quality assets.
At the same time, there’s a glaring discrepancy: while overall vacancy rates remain high, demand for A/AAA office spaces—well-located, amenity-rich, and aligned with tenant needs—is surging. Supply is constrained, and tenants are struggling to find space that meets their expectations.
As reported in The Wall Street Journal, this paradox illustrates how the bifurcation of the market favors quality assets. Additionally, CBRE’s observations at the Toronto Real Estate Forum highlight that while sublet availability is declining, demand for highly amenitized and strategically located office properties continues to rise.
I
n Toronto, The Globe & Mail reports that the city’s office market anticipates significant lease deals in 2025, with large firms prioritizing sustainability and employee experiences. According to Nick Kordic, VP of Leasing at Oxford Properties, “The focus on quality extends beyond location and aesthetics. Large firms are committed to sustainability and to employee experiences in the building that include modern amenities and engaging, flexible workspaces.” Supporting this trend, Oxford Properties recently completed an expansion and renewal of a 300,000-square-foot lease with EY in a high-quality asset, further emphasizing the demand for well-located, adaptable environments that prioritize sustainability and modern tenant needs.
Supporting Stats: For example, Class A office properties in major urban centers have seen occupancy levels rebound significantly faster than lower-tier properties, with vacancy rates often 10-15% lower. Additionally, tenants are willing to pay premiums of 15-20% for spaces that offer high-quality amenities and robust operational technology, further illustrating the “best vs. the rest” dynamic.
Resolving to Invest with Intentionality
In 2025, the smartest owners will resolve to act decisively. Here’s why:
The Cost of Inaction: Tenant dissatisfaction, increased turnover, and stagnant rents will plague those who fail to adapt.
The Lessons from Resolutions: Like personal goals, success in real estate requires focus, accountability, and alignment with broader strategies.
The Opportunity: By meeting tenant needs through targeted investments, owners can increase occupancy, strengthen relationships, and enhance asset value.
What Tenants Want Today
To close the gap between tenant expectations and current offerings, owners must focus on key areas:
Amenities that Enhance Operations: High-functioning lobbies, gyms, conferencing spaces, food services, and flexible hoteling areas.
Technology Integration: Building-wide Wi-Fi, virtual access cards, mobile apps for tenant convenience, and ubiquitous cell coverage.
Wellness and Sustainability: Consistent heating and cooling, clean air, recycling programs, and community engagement initiatives.
Cybersecurity: Robust protections for building systems to ensure tenant safety and business continuity.
Anecdote: A landlord I recently spoke with shared that their CIO, responsible for corporate security, has been hearing more from leasing teams about the importance of building safety and consistency. The CIO noted an increasing dialogue on operational technology (OT), focusing on ensuring tenant investments are not jeopardized by poorly managed systems. These conversations reflect a growing demand for landlords to prioritize secure, reliable building environments as a core component of tenant satisfaction and retention.
These elements aren’t just nice-to-haves; they’re essential to attracting and retaining tenants who value spaces that support productivity, collaboration, and wellness. CBRE’s “best vs. the rest” framework underscores that tenant preferences are rapidly reshaping expectations around modern office spaces, with a premium placed on well-equipped, secure, and user-friendly properties.
A Strategy for Action
Here’s how owners can act with intentionality and set their assets apart:
Assess Your Building’s Foundation: Work with property managers to evaluate physical, digital, system, and operational elements.
Map the Technology Ecosystem: Identify all systems, networks, software, and hardware, and assess how they interconnect.
Align Capabilities with Needs: Evaluate how these elements support tenant requirements, internal goals, and capital strategies.
Define and Align Your Vision: Ensure your vision aligns with capabilities and investments and clearly communicates a competitive value proposition.
Synchronize Leasing and Operations: Match leasing objectives with operational realities to avoid overpromising or underdelivering.
Prioritize Cybersecurity: Protect tenants and building systems from risks with proactive, reliable measures.
Collaborate with a Guide: Engage experts to help maintain focus and accountability, ensuring your strategy aligns with market trends.
Intelligent Buildings: A Guide for Sophisticated Owners
For owners and managers seeking to bring this strategy to life, Intelligent Buildings offers a proven platform to address these challenges, mainly related to technology and smart building strategy and managed services around cyber security. Here’s how:
For the Advanced Manager: Securing the Foundation
Sophisticated asset managers often grapple with justifying the return on investment (ROI) of improvements to key stakeholders. Partnering with Intelligent Buildings provides an excellent way to isolate and explore ROI related to efficiencies and technology investments. This analysis can be a valuable input to securing capital necessary for unlocking investments that speed up leasing or maintain higher renewal rates, ultimately creating economic value.
For the Owner Ready to Build a Vision: Defining the Path Forward
For those who are just starting, Intelligent Buildings’ Advisory Services can help:
Formulate a Strategic Thesis: Develop a clear vision for aligning tenant needs, building technology capabilities, and capital strategies.
Structure the Journey: Create a roadmap for intentional investments that maximize value and attract tenants.
Set the Stage for Action: Build a foundation that ensures future initiatives unfold in a structured, deliberate manner.
For the Forward-Thinking Owner / Manager: Combine Strategy and Action
For property managers, the real hero in a complex space is one who recognizes what they don’t know and aligns rapidly with a guide who can focus them cost-effectively. Intelligent Buildings equips property managers with inventory tools and proven cybersecurity solutions that ensure critical systems are managed effectively. Starting with expert advice ensures managers are armed with the proper tools and strategies to align operational success with tenant needs.
Wrapping It All Together
Just as successful resolutions require intentionality, clarity, and follow-through, so does real estate investment. Don’t become a statistic of failed New Year’s resolutions. The smartest owners will:
Understand Tenant Needs: Use technology and dialogue to close the gap between expectations and offerings.
Invest in Quality Systems: Ensure the building’s foundation supports tenant satisfaction and operational efficiency.
Partner with Experts: Work with Intelligent Buildings to stay ahead of market trends related to technology and secure a competitive edge executing a plan.
In 2025, resolve to act with purpose. By aligning your assets with tenant needs and leveraging the tools and expertise of Intelligent Buildings, you can transform your properties and achieve your economic goals. The time to act is now.
When I first began exploring smart building technology at Oxford Properties, I faced a dilemma that’s common in commercial real estate (CRE): Should corporate IT be involved in managing operational technology (OT)? At the time, I was working closely with Cisco Systems and Intelligent Buildings (IB) to assess their capabilities against a spider map of OT competencies. My manager, head of operations for Canada, advised keeping IT out of the conversation. He feared their involvement would lead to a loss of control over our direction, as IT’s expertise in networks and standards might overshadow our focus on building systems. Looking back, I see both the wisdom and the missed opportunities of that decision.
Understanding the Nuances: IT vs. OT
At first glance, informational technology (IT) and operational technology (OT) might seem like two sides of the same technological coin. Both involve systems, data, and networks, but their purposes and functions are fundamentally different. IT focuses on managing and securing data and communications within an organization—think email servers, financial systems, and cloud-based software. IT is designed to handle high volumes of data, prioritize cybersecurity, and enable collaboration across corporate functions.
On the other hand, OT is rooted in the physical operations of a building or facility. It oversees systems like HVAC, lighting, elevators, security access, and life safety technologies. Unlike IT systems, OT devices are often purpose-built, operate continuously, and are designed for longevity—some systems remain in use for decades without updates. OT prioritizes uptime, reliability, and operational safety, as even a minor system failure can have real-world consequences, such as tenant discomfort, building inefficiencies, or safety risks.
The differences extend to cybersecurity and system design. IT networks are often governed by strict standards, with regular updates to prevent vulnerabilities. In contrast, OT networks tend to lag in security updates due to their continuous operational demands, leaving them exposed to unique risks. Moreover, while IT systems rely on well-defined protocols and centralized management, OT systems often lack standardization and must operate across a mix of legacy and modern technologies. These disparities create challenges in integrating IT and OT, particularly in real estate, where property managers and owners often rely on both domains without fully understanding how to align them effectively.
Reflection on the Real Estate Industry
Today, the relationship between IT and OT varies significantly across organizations. In some firms, corporate IT has specific resources dedicated to supporting building operations, while in others, IT is completely absent from property technology decisions, leaving property teams to manage systems on an asset-by-asset basis. Still others use a centralized property management resource to bridge IT and OT functions. These inconsistencies slow the adoption of best practices, increase operational risks, and impede the efficient use of technology to enhance tenant experiences.
For example, corporate IT teams often don’t understand how real estate assets generate revenue. Their focus on cost containment can overlook the broader financial impact of tenant satisfaction, lease retention, and operational efficiencies. Conversely, property teams sometimes assume IT tools can be applied directly to OT environments, leading to mismanagement and inefficiencies. The result is a fragmented approach that leaves organizations vulnerable to cybersecurity threats and operational disruptions.
The Risks of Misalignment
When IT and OT functions operate in silos, the consequences can be significant:
Cybersecurity Vulnerabilities: OT systems are often left unprotected against modern threats because they’re not designed with cybersecurity in mind.
Inefficient Integration: Poorly aligned IT and OT systems fail to leverage data for predictive maintenance or tenant insights.
Operational Disruptions: Misaligned systems can cause delays, miscommunication, and even system failures.
Missed Opportunities: Without a unified strategy, organizations struggle to use technology to create tenant experiences that drive higher rents, lease expansions, and greater asset value.
Strategic Alignment: The Key to Success
My experience at Oxford Properties taught me that the best outcomes come from blending IT’s expertise with OT’s specialized focus. When we eventually involved IT in our discussions, their knowledge of network architecture and cybersecurity reshaped our strategy, allowing us to scale solutions more effectively and securely. This collaboration highlighted the potential for IT and OT to work together to:
Drive Efficiency: Use data to optimize energy consumption, streamline maintenance, and reduce costs.
Enhance Tenant Experience: Leverage smart technologies to improve comfort and convenience, fostering tenant loyalty.
Maximize Asset Value: Align technology with business objectives to boost revenue and property competitiveness.
How Intelligent Buildings Can Help
Navigating the IT-OT divide is challenging, but it’s a space where Intelligent Buildings excels. Through advisory services, IB helps property managers and owners assess their technology landscape, set strategies, and implement solutions tailored to OT environments. One of our key offerings, IntelliNet, provides managed cybersecurity services designed specifically for OT systems. IntelliNet’s real-time inventory tools, rapid onboarding, and scalable capabilities make it a powerful ally in protecting and optimizing building operations.
Conclusion
The future of real estate lies in how well we manage the intersection of IT and OT. Understanding their differences and aligning their functions isn’t just an operational necessity—it’s a strategic advantage. By leveraging technology to unlock efficiency, enhance tenant experiences, and drive asset value, property managers can position themselves as leaders in an evolving industry. If you’re ready to explore how Intelligent Buildings can help you navigate this landscape, let’s start the conversation.
As we approach the end of the year, it’s a natural time for reflection and planning, especially for commercial real estate (CRE) executives, managers, and operators navigating today’s complex challenges. Protecting building assets and systems from cyber threats has become a critical priority for the industry, driven by the increasing frequency and sophistication of attacks. The end of the year is a great time to evaluate your organization’s cybersecurity strategies and ensure readiness for cyber threats in 2025.
This article explores critical cybersecurity topics, including the importance of revisiting IT policies to ensure they align with current operational procedures and adapting to and implementing ever-changing privacy regulations. We’ll provide actionable insights to strengthen your organization’s defenses. We’ll also explore the implications of artificial intelligence (AI) and the governance of data usage and privacy, the strategic role of cyber insurance, and how fostering a culture of preparedness can help your organization stay ahead of future threats.
This discussion addresses cybersecurity from two critical perspectives: Executive Leadership and Real Estate Operations. Both are essential for success. While leadership defines the strategy and sets the vision, operational teams execute these strategies, measure outcomes, and drive operational excellence. By integrating these perspectives, your organization can build a cohesive approach to addressing today’s cybersecurity challenges, ensuring resilience and long-term growth.
Implementing Robust Policies
Executive Leadership: Cybersecurity policies have become a cornerstone for safeguarding CRE assets. However, establishing robust IT policies presents significant challenges. Many organizations need to work on consistent standards across operating systems, leading to vulnerabilities in password protection and irregular backup practices. These gaps are compounded by the lack of comprehensive disaster recovery plans tailored for cyber incidents. To meet the growing complexity of the cyber landscape, executives must prioritize policies that ensure compliance with domestic and international standards. This includes integrating encryption strategies to protect sensitive information and adopting business continuity plans across diverse building portfolios. The ability to anticipate and align with evolving government regulations is essential to future-proof operations and mitigate risks effectively.
Real Estate Operations: Enforcing a standardized IT framework is foundational to cybersecurity in the CRE industry. Organizations should adopt consistent protocols for system backups, recovery plans, and data security across all sites. These measures ensure uniform protection and simplify the process of managing diverse portfolios. Additionally, leveraging policy monitoring tools can help track legal and cyber insurance requirements compliance. Clear accountability structures and regular policy reviews strengthen organizations’ resilience against cyber threats.
Strengthening Privacy
Executive Leadership: Data privacy is a growing concern, mainly as CRE operations handle vast amounts of operational and tenant data. The proper compliance framework—GDPR, CCPA, or another model—is crucial for maintaining trust and regulatory alignment. Operational networks, often overlooked, contain sensitive information related to building management systems. Protecting this operational data is as vital as safeguarding personally identifiable information (PII). Another critical challenge is addressing data crossover points where operational and informational networks converge. These intersections are potential hotspots for cyber vulnerabilities, requiring careful segmentation and robust monitoring to ensure privacy and security.
Real Estate Operations: Organizations should implement network segmentation to isolate operational technology (OT) networks from traditional IT systems and enhance privacy controls. This minimizes crossover risks, ensuring that vulnerabilities in one domain do not compromise the other. Equally critical is identifying the data being collected and stored. Although this data is classified as operational data, it still may contain elements of PII. Knowing what data your systems have and how it is used will allow you to prioritize operational data security. Regular audits and real-time monitoring tools can provide organizations with the visibility needed to proactively address potential threats.
Optimizing Cyber Insurance Strategies
Executive Leadership: Cyber insurance has become a critical component of risk management strategies for CRE executives. Insuring properties against cyberattacks helps prevent financial losses and reinforces tenants’ trust. However, underinsurance—or worse, lack of coverage—can jeopardize portfolio stability. Beyond direct monetary risks, cyber incidents can lead to operational disruptions and long-term reputational harm, particularly when tenant services are affected. Executives must balance comprehensive coverage with proactive measures to mitigate risks, ensuring their insurance policies remain a vital safety net in an unpredictable landscape.
Real Estate Operations: Conducting periodic cyber risk assessments is an industry best practice for determining appropriate insurance coverage. These evaluations identify vulnerabilities and quantify risks, enabling CRE executives to negotiate more favorable policy terms. Properties can analyze the audit results to proactively manage threats, such as enforcing policy with both users and vendors, better managing remote access to the systems, establishing data accountability and, most importantly, staff and vendor training. By reducing the likelihood of incidents, organizations can position themselves as lower-risk clients to insurers, potentially lowering premiums and increasing coverage options.
Combatting Future Threats
Executive Leadership: The rapid evolution of threats, including those targeting IoT devices and ransomware, demands constant vigilance. CRE operators must establish routine protocols to update hardware, firmware, and software. Keeping up security updates can expose vulnerabilities that sophisticated attackers quickly exploit. Advanced threats, such as ransomware targeting building systems, highlight the need for rigorous patching schedules and proactive monitoring practices. Staying ahead of these challenges is not just about technology but about embedding a culture of preparedness into the organization.
Real Estate Operations: CRE operators must invest in routine maintenance programs to stay ahead of emerging threats. These programs should include regular patch updates, system audits, and proactive threat monitoring. Adopting a zero-trust framework for internet connectivity and remote access to IoT devices can mitigate risks associated with these increasingly prevalent systems. Continuous inventory scanning further ensures that all networked devices are accounted for and protected.
AI and Building Technology Evolution
Executive Leadership: AI offers significant opportunities but introduces risks when poorly integrated into CRE operations. Vendor platforms utilizing AI may misuse data without proper oversight, leading to compliance and reputational challenges. Executives must define use cases for AI adoption and ensure its deployment aligns with operational goals and regulatory frameworks. Vendor-driven AI solutions require scrutiny; contractual safeguards should specify data usage and retention policies to protect tenants and operators. Establishing governance frameworks for AI will ensure these technologies enhance efficiency without compromising security.
Real Estate Operations: Integrating AI into building management systems requires a deliberate and controlled approach. Organizations should establish clear governance frameworks to define acceptable AI uses and ensure alignment with operational objectives and privacy laws. Collaborating with vendors to include robust AI usage clauses in contracts is essential for protecting data integrity and tenant trust. Discussions with the vendors should require vendors to disclose where and how data is used and if there are privacy controls when data is stored. Regular reviews of AI deployments, informed by feedback from technical teams and tenants, help balance innovation and security.
Did you know that smart building technologies can reduce energy costs by up to 30%? The commercial real estate (CRE) industry is on the brink of a smart revolution, where Internet of Things (IoT) isn’t just a luxury—it’s the new norm. Traditionally, commercial buildings operated with relatively static infrastructure, offering limited automation and connectivity. However, with the rise of smart devices, data analytics, and cloud-based management systems, CRE is becoming more efficient, sustainable, and responsive to the needs of tenants and property managers alike. Here’s a closer look at how IoT and interconnected systems are reshaping commercial real estate.
1. Maximizing Efficiency Through Smart Building Systems
IoT sensors and interconnected systems allow property managers to monitor and control energy usage, lighting, and HVAC (heating, ventilation, and air conditioning) systems in real time. These technologies analyze occupancy patterns, weather conditions, and time-of-day usage to optimize energy consumption, reducing operational costs and lowering carbon footprints.
For example, IoT-enabled thermostats can adjust temperatures in different areas of a building based on occupancy, while smart lighting systems dim or switch off lights in unoccupied spaces. These advancements can reduce energy costs significantly, benefiting both building owners and the environment. As sustainability becomes a higher priority for governments and businesses, smart systems are no longer optional—they’re essential.
2. Redefining the Tenant Experience
A significant shift in CRE is the focus on providing a better tenant experience. IoT enables tenant-centric applications such as personalized climate control, enhanced security, and seamless building access. Smart access control systems let tenants enter facilities using smartphones or keycards, eliminating the need for physical keys. Occupancy sensors and indoor navigation systems help tenants locate available shared spaces, such as conference rooms, more efficiently.
Additionally, IoT systems enable predictive maintenance, identifying potential issues before they escalate. For instance, sensors can alert property managers if an HVAC unit needs repair, allowing maintenance to be scheduled proactively. The result? A seamless tenant experience that boosts retention and satisfaction.
3. Unlocking the Power of Data
In commercial real estate, data is now king. IoT technology allows CRE owners and managers to collect vast amounts of data on building performance, occupancy patterns, tenant preferences, and maintenance needs. These insights empower strategic decision-making and enhance property value.
For example, analyzing which spaces are used most frequently enables property managers to optimize layouts, add amenities, or adjust leasing terms to meet tenant needs. Historical and real-time data also improve financial forecasting, helping managers control operating expenses and set optimal rental rates. This competitive edge ensures smarter building operations and investment decisions.
4. Reinventing Security for a Connected World
Security has always been a top priority in commercial real estate, and IoT is modernizing it. IoT-enabled security cameras, motion detectors, and access control systems provide real-time monitoring and alerts, enhancing tenant safety. These systems can detect unusual activity, such as unauthorized access, and notify security personnel instantly. Many also integrate with mobile devices, giving property managers remote access and control over security operations.
Beyond physical security, IoT addresses cybersecurity in increasingly interconnected environments. IoT security solutions monitor network activity for unusual patterns, flagging potential threats to prevent breaches. With robust cybersecurity measures in place, IoT-enabled buildings strike a balance between innovation and safety.
5. What’s Next for Smart Buildings?
As IoT technology advances, the potential for interconnected systems in CRE will only grow. Next-generation smart buildings could include artificial intelligence (AI)-driven automation, virtual reality (VR) integrations for remote property tours, and blockchain for secure transactions. The expansion of 5G networks will enable IoT devices to process data faster and more efficiently, further enhancing building capabilities.
Incorporating IoT and interconnected systems in CRE is no longer optional—it’s essential to stay competitive. From reducing costs and enhancing tenant satisfaction to providing valuable data insights and bolstering security, the advantages are compelling. For CRE owners, investors, and managers, embracing this technology is an investment in the future—a future where buildings are dynamic, responsive environments that add value to the people and companies they serve.
Overcoming Challenges for a Smarter Future
While the benefits of IoT are clear, implementing these systems comes with challenges. Although upfront costs can be significant, they can be carefully planned and managed. With expert guidance focused on outcomes, priorities, and specific use cases, foundational investments can be optimized for maximum impact. Pairing these investments with appropriate cybersecurity measures ensures both immediate value and long-term success. By taking a strategic approach, CRE stakeholders can navigate these challenges and unlock the full potential of smart building technologies.
Call to Action: Shape the Future of CRE
The time to invest in IoT and interconnected systems is now. CRE professionals who embrace these advancements will not only future-proof their portfolios but also create dynamic spaces where innovation thrives. Ready to start your IoT journey? Explore the latest smart building technologies today.
How AI Changed My Work – Part 2 – Post Toronto Real Estate Forum
Last week, I shared my article about how AI is transforming real estate and my journey using tools like ChatGPT. This week, at the Toronto Real Estate Forum, Ajay Agrawal’s discussion on the first day of the forum validated my early conclusions about AI’s transformative potential. His insights reinforced what I’ve observed through my own limited use—and what many others are now discovering. As I chatted with attendees, it became clear that more people in our industry are starting to experiment with AI. This was amazing to hear and further validated my intuition.
Ajay’s talk was inspiring, particularly his explanation of how AI has decoupled prediction from judgment. Human judgment remains critical, and AI will find its rightful place and function over time. But make no mistake: AI is coming faster, it’s smarter, and it’s going to change everything.
This year’s forum featured at least three sessions (one on the main stage and two breakouts) focused on AI. Some, like Ajay’s main stage talk, were inspiring. Others, however, felt frustrating—taking a 30,000-foot view that overcomplicated how to get started with AI rapidly. One breakout, hosted by Thano Lambrinos from QuadReal, hit the mark by showcasing practical AI applications for real estate. Thano’s session, which included insights from Joseph Martino of Primaris REIT, demonstrated how AI is already making an impact in the industry.
Thano also wowed the crowd by using Notebook LM to turn a document into a fully immersive podcast experience – cheap and convincing AI trick Thano! The result? A truly amazing podcast that sounded like it was recorded live. This kind of creative, practical use of AI underscores just how transformative it can be when applied thoughtfully. Imagine using this for training, case studies for web sites, or even streaming.
Here are two ways to build rapid adoption of AI in real estate
Education and Training: Roll out AI training to a broad team to teach them the power of AI. This training should equip them to understand the role of personas, crafting effective queries, and the importance of training AI by teaching it context. Empowering teams with these foundational skills helps them unlock the full potential of AI tools in their roles.
Pilots and Experimentation: Equip a diverse group of people across roles to tackle analytical tasks tied to real problems that take too much time. For instance, in acquisitions, you could upload all the leases and use AI to query a simple descriptive hot button list, such as “leases that have termination clauses” or “leases that have CAM and Tax caps.” This allows teams to rapidly sort and identify critical items before evaluating specific outliers in more detail.
The challenge isn’t just learning AI; it’s scaling its use meaningfully across processes and systems. It’s easy enough to turn on subscriptions, but embedding AI into workflows and making it an integral part of decision-making takes effort. However, here’s the key: don’t let the fear of scale or data cleanliness hold you back from experiencing what AI can already do.
Here’s my takeaway
Don’t delay experimentation—use initial tests to uncover AI’s potential and build momentum.
Don’t worry (too much) about how clean your data is. AI can often interpret and predict valuable insights even from imperfect data. Figure out cleansing later.
Talk to peers and colleagues—they’re already using it. Find out how, and don’t look back. Don’t let your own hesitastion stop you one more minute!
AI is here, it’s exciting, and it’s going to blow your mind when you figure out how its capabilities can improve your productivity.
As I continue to explore this space, I’ve also been listening to Co-Intelligence by Ethan Mollick. It’s a fascinating and useful read as I shape my opinions on AI’s value, potential and limitations. It is also easy to read, approachable and worth exploring.
If you haven’t yet, check out my original article here: My LinkedIn Post.
What’s your take on AI in real estate? How are you or your organization starting to integrate it? Let’s keep the conversation going.
