by Brianna Crandall — February 21, 2020 — Facilio Inc., an artificial intelligence (AI)-driven enterprise platform for building operations and maintenance for the real estate industry, recently released an insightful report titled 2020 State of CRE Operations 3.0. Facilio has labeled the new era of data-driven operations and maintenance in commercial real estate as “CRE 3.0,” marked by the three-pronged industry focus on data extraction out of siloed building functions; data aggregation on a portfolio-central platform; and use of modular apps to perform data-driven operations acting on the insight-rich operational data to enable predictive portfolio operations.
Prabhu Ramachandran, founder and CEO, Facilio, remarked:
Buildings are a powerhouse of data. The automation-driven upgrade of commercial real estate assets of a few decades ago — labeled “CRE 1.0” — was focused on embedding buildings with hardware that delivered improved performance and service. “CRE 2.0” was the adoption of point solutions for property management, maintenance, energy savings and tenant engagement, among others. This new decade will see the rise of “CRE 3.0” — an innovative new data-driven model that allows real-time visibility into portfolio operations to optimize asset performance.
The report touches upon the current state of operations and the priorities of commercial real estate (CRE) owners and highlights the growing demand for data-driven operations to drive operational efficiencies and optimization.
Key findings include:
- Huge opportunity for technology to optimize operational spend: The primary frustration faced by CREs today is rising maintenance cost, influenced by automation data silos in operating technology (OT), dealing with dead-end tools for the expansive variety of functions (maintenance management to asset performance to the tenant experience), and limited access to portfolio-wide operational information in real time.
- Maximizing efficiency, energy management and customer experiences is a top CRE priority: Real estate portfolio owners are dealing with inflexible tools to manage primary business outcomes, such as maintenance, asset optimization, and delivering outstanding tenant experiences.
- CREs understand the need to unify and harness operational data at enterprise scale: Currently, management of assets and optimization of processes is limited by the lack of ready access to portfolio-wide operational information in real time.
The CRE 3.0 report also reveals that connected building portfolios and end-to-end process views will start becoming the norm from 2020 onwards. New assets coming to the market, the heightened expectations of tenants and the Millennial workforce, regulatory reforms, and urgency around sustainability initiatives are driving a major transformation in the industry.
As we move into a new decade, it is increasingly clear that technology will have an outsized impact on asset values. CREs need to focus on leveraging technology to boost building performance, secure maximum uptime, and provide seamless tenant experience across portfolios. And this report provides an eye-opening look at the current state as well a vision of the transformational impact of data-driven operations.
The full 2020 State of CRE Operations 3.0 report and analysis are available for free download from the Facilio website.
Headquartered in New York, with offices in Dubai, Chennai and Singapore, Facilio is an IoT- and data-driven enterprise platform for real-time, multi-site facilities operations and maintenance (O&M). Its optimization software combines Internet of Things (IoT), AI and machine learning technologies to provide the construction and commercial real estate businesses unified and predictive command and control across their entire operation.