While three-quarters of property professionals expect to achieve financial gain from the smart revolution, less than a quarter have taken significant action already, according to new research undertaken by Charles Russell Speechlys.
In the firm’s report, “The New Real: unlocking new gains through smart buildings”, unveiled last night at a launch party overlooking London from Landing Forty Two at the Leadenhall Building, EC3, it concludes that Britain is a decade away from a smart building revolution that will generate new revenue streams for business.
Analysis: The smart road to 2026 >>
Four major obstacles mean progress will falter unless the property sector can better quantify the commercial benefits of smart technology and manage new areas of risk, according to the report. Those obstacles are: valuing and quantifying the future of smart buildings; developing new partnerships and collaborations with technology businesses; managing obsolescence of existing building stock; and managing data privacy and cyber security risk.
The report states that for 40% of those interviewed, the opening of new revenue streams will be one of the most significant gains from smart buildings over the next ten years. However, while 72% expect to achieve financial gain from using data collected by the built environment, a quarter are yet to take any form of action to adapt to the development trend and just 14% claim to have taken “significant” action. The majority (61%) are either only just now considering what they might do, or taking small steps.
Commenting on the research findings, James Carter, managing partner of Charles Russell Speechlys, said: “Whether you are an owner or occupier, a builder or developer, or a technology provider, the built environment offers real opportunities for the forward thinking. In this report, we have explored the gains on offer and how they are likely to be exploited in the coming years. Through a combination of deep sector expertise and clear legal insight, the report analyses the gains and opportunities and shows where some of the key legal pressure points lie.”
Writing this week for Estates Gazette, CRS’s head of real estate Mark Smith and joint head of construction, engineering and projects, David Savage, offer an in-depth look at the report’s findings and the legal challenges raised by the rise of smart buildings.
• To send feedback, e-mail jess.harrold@estatesgazette.com or tweet @jessharrold or @estatesgazette
