The Biden administration has pledged to reduce the carbon footprint caused by US buildings by 50% by the year 2035. While the administration hasn’t announced a concrete plan on how they intend to do so, digital services that help businesses monitor their carbon emissions is already proving to show success for the commercial real estate sector.
For example, Carbon Lighthouse is a startup with over $67 million in funding that uses artificial intelligence to lower building emissions in commercial real estate. Their new Efficiency Production service allows building owners to directly monitor and measure carbon emissions in certain structures. This technology is thought to be extremely beneficial for older buildings that may be falling behind on meeting new climate goals.
The 2021 Deloitte Commercial Real Estate Outlook Report shows data that proves the Covid-19 pandemic has also made a major systemic impact on commercial real estate for 2021 that will last the whole year. John D’Angelo is a US Real Estate Leader at Deloitte Consulting who helped write the report. He claimed the impact of the pandemic on commercial real estate is causing the industry to rely much more on technology.
“As commercial real estate companies work to understand and respond to emerging behavior patterns, create safe building spaces, improve operational efficiency and identify asset- and portfolio-level risks and opportunities. We see the rise of digital twins, direct digital engagement, data and analytics, robotic press automation and digital maturity to drive commercial real estate in 2021 and beyond,” D’Angelo explained.
Jim Berry is the Vice Chairman and US Real Estate Leader at Deloitte, who also recently spoke with the media regarding the pandemics creation of unique obstacles for the industry to get through: “It is important to recognize that while the pandemic served as an accelerant in the market, it did not change the trends that were already occurring.”
“In previous commercial real estate outlooks, we had pointed to a changing dynamic and need for the industry to seize better opportunities to utilize new and emerging technologies and data analytics to drive a different value proposition that focuses on tenant and end-user experience. Today, we continue to see – and what you can expect down the road – is a disruption in the value proposition of commercial real estate,” said Berry.
“As memorable as 2020 events have been, 2021 and beyond will be telling, as certain commercial real estate companies begin to step into opportunities to better align their operations with those of the occupier and end-user.”
Berry believes that this newfound focus on these technologies will help advance development and shift the way the industry works overall for the better. The digitization of carbon emissions and other information regarding climate is essential for these businesses to maintain a greener footprint.
“We will see commercial real estate businesses reevaluating the value proposition of properties by emphasizing experiential value and repositioning assets such as transforming the talent function – job roles, processes, and culture – to prepare for the future of work and balancing business recovery, seizing new opportunities and tenant and employee engagement. This will likely require a combination of elements, including breaking down functional silos, enhancing leadership and organizational agility, increasing collaboration and engaging in transparent and ethical decision-making.”
Berry believes that as the pandemic comes to an end, all the trends that were existing before it hit will still be around, but much more advanced, which will hopefully be beneficial to both the real estate industry overall in America, as well as the planet.
Eric Mastrota is a Contributing Editor at The National Digest based in New York. A graduate of SUNY New Paltz, he reports on world news, culture, and lifestyle. You can reach him at firstname.lastname@example.org.