In any situation, knowledge is power. In the uncertain times of 2022, you won’t find much assurance about what the future holds. The world of real estate is no exception. Gone are the days where decisions are made solely on intuition. It is time that property owners leverage technology to have a better understanding of their tenant’s occupancy and behavior. Gut instincts are great, but it would be a mistake to use nothing but mere instinct to make large financial decisions.

A mistake that can cost you thousands!

Data is one of the strongest tools businesses can use to understand the entire scope of their operations. It is through data that you verify, understand and quantify a situation. For property owners, data can answer the questions …

When does Building X get the most traffic? 

What entrances are used the most?

How much should I be spending on cleaning services?

When is it time to perform maintenance?

How can I justify increasing rent?

Is my space safe for my tenants?

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Data can be collected automatically through IoT devices. This type of technology stands to add value to a property.

With things like occupancy sensors, anonymous people counting, indoor air quality monitoring, contact tracing, energy monitoring, occupant feedback stations and connected smoke detectors, a property transforms from just a building into a living and breathing organism with patterns, behaviors and capabilities.

Lease retention data

Another strategic advantage IoT offers property owners is having the ability to resolve issues in a building before it happens.

Monitoring your building’s indoor air quality protects the safety and comfort of your tenants. In the wake of COVID-19, questions about the health of indoor spaces are increasingly common. Being armed with insight on the health of your indoor spaces and making changes to your building as needed before the air quality is called into question are invaluable.

Wouldn’t it be great to have an idea if a tenant plans to renew their lease before they give you notice?

Using occupancy sensors, you can monitor how heavily a space is used. If a tenant’s occupancy rate is steadily decreasing month to month, it may be a good indicator that they don’t plan on renewing the space. This will enable you to develop informed leasing strategies and contract negotiations.

Decisions that add value

With data sets at your fingertips, you are capable of making strategic decisions on the types of businesses you lease to. Let’s say you are looking to lease out retail space in your new office building and your occupancy monitor reports that your heaviest foot traffic is between 8 a.m. – 10 a.m. in the west entrance. With this information, it would benefit the property owner to lease to a business that thrives in the morning hours (think coffee shop, breakfast café) instead of a business more likely to thrive in the evening.

Cost savings

Data is crucial to improving efficiencies. With a granular approach to monitoring building performance, property managers can make cost-saving adjustments to their buildings with ease. Every building is unique in its needs and commercial real estate owners would benefit from utilizing Microshare’s EverSmart suite of solutions to bring their buildings to life, maximize their savings opportunities and establish property differentiation.

Charles Paumelle | Chief Product Officer and Co-Founder | CPaumelle@microshare.io