For years, location, location, location has been the golden rule of commercial real estate. It’s become one, if not the, biggest factor by which a property’s value is determined.

Here at LMG we think it’s high time those rules were rewritten… and we’re not alone. In its latest 2020 Commercial Real Estate Outlook, envisioning building needs for the next decade, “Big Four” professional services consultancy Deloitte predicts that the most successful commercial real estate companies will start following the mantra: location, experience, analytics. We’re inclined to agree.

Obviously, location still matters. People will always want spaces that are close to their customers, their employees, and/or their supply chains, with good transport links.

However, the latest in digital technology, IoT-based applications and converged deployment models are now creating very real and tangible new ways for the commercial real estate sector to create more value in the property, for its tenants, as well as creating brand new sources of ongoing revenue.

Ubiquitous connectivity

Globalisation, the rise of remote work and increased coworking are forcing building infrastructure and technology to evolve. In order to thrive in this changing landscape, buildings must derive value from digitally connected spaces that put the needs of users front and centre.

Automated devices driven by ubiquitous connectivity create opportunities to transform buildings – whether they be campuses, offices, retail stores, hotels, hospitals or datacentres – into cost-efficient, responsive environments that deliver great experiences for the people who occupy them.

But don’t just take our word for it. There’s plenty of research that shows that buyers and tenants will pay a premium for ‘smart buildings’ that offer connected services.

A study by The Center for Real Estate of the Massachusetts Institute of Technology (referenced by PwC) suggests buyers and tenants will pay an 8.2% premium in rent and a 23.7% premium in transaction price for fully digitised buildings and personalised occupant experiences.

The European Commission’s Macroeconomic and Other Benefits of Energy Efficiency report also found a smart, higher-performing building can conservatively as much as 11.8% in lease value — and ultimately yield between 5% to 35% higher sale values.

LMG – a trusted partner

Here at LMG we have the knowledge, experience and unique, silo-free converged deployment model to guide our customers through the ever-tightening relationship between an organisation, its buildings and its people.

LMG’s solutions can enhance the workplace experience for staff and visitors through services such as way-finding and virtual concierges. At the same time, our powerful analytics engine provides key business intelligence that allows organisations to continually align workspace and business needs – helping reduce occupancy overheads, improve talent retention and optimise business productivity.

LMG believes the future for ‘smart buildings’ lies in solutions that benefit both owners and occupants.

So, if you’re looking for a trusted partner that could deploy and manage the whole of your property’s services to unlock the maximum value of your building, why not give us a call?