Smart buildings present an obvious sector of the market in which Internet of Things (IoT) enabled services can generate efficiencies, improved user experiences and profits. Much of the early focus has been on utilizing IoT applications to generate savings in utility consumption but this is now widening to encompass applications that support the new ways that people use the buildings they live and work in. Popular applications include room and desk sharing, individual environmental control, predictive maintenance and many others.
Costs associated with traditional workplaces have typically followed the 3:30:300 model set out by real estate firm JLL which outlines operating costs of US$3 for utilities, US$30 for rent and US$300 for employee compensation per square foot. Naturally, the actual cost of this varies from market-to-market but the ratio generally holds true. The traditional view has been that you can’t influence rent or employee compensation and that utility costs are the only area with room for maneuver. Historically, these are the easy wins with IoT-enabled sensors and meters being used to monitor and manage power, heat, cooling and lighting-related energy consumption more efficiently.