IoT in real estate: a smart building explained simply

When is a building actually smart? That question sounds simple, but the answer is not. An automatic door, a smart thermostat or an app on a phone does not yet make a building a smart building. Individual conveniences are something different from a building that genuinely works together with itself and its users.

For property owners, landlords, agents and tenants, the term IoT is being used more and more often, without it always being clear what it actually means. In this article we explain it calmly, without technical jargon, and show why a building's digital infrastructure matters so much in this respect.

IoT explained simply

IoT stands for Internet of Things. Simply put: devices and sensors in a building that are digitally connected to each other or to a central system, that collect data and, based on that data, share information or enable actions.

Let's make it concrete. A traditional lamp turns on when someone presses a button. A smart installation can use a sensor to detect that someone enters a space, switch on the lighting and record how often that space is actually used. That is IoT in practice: the device does not just do something, it notices something and passes that information on.

What can IoT do in an office?

The applications are more familiar than you might think. A selection of what has now become common:

• sensors that measure how many people are in a meeting room;
• lighting that automatically responds to occupancy;
• climate systems that respond to occupancy;
• temperature and air quality sensors;
• smart access systems and digitally reservable parking spaces;
• charging stations that share their load with each other;
• elevators that report fault information;
• sensors that signal water leaks;
• energy and consumption meters and systems that report maintenance needs;
• workstations that can be booked through an app.

The building, so to speak, starts collecting information about itself. And that information can then be used to manage the building more efficiently, comfortably and intelligently.

A practical example

Take an ordinary working day. In the morning, an employee drives to the office and books a parking space via an app. His access pass or smartphone grants entry to the building. A workstation has been reserved. Sensors detect that the floor is in use, and lighting and climate control respond accordingly.

A meeting room that is not in use does not need to be fully climate controlled in the meantime. And while all this is happening, building systems are gathering information about energy use, occupancy and performance. All these separate digital interactions together form part of the IoT ecosystem of a smart building.

A building does not become smart because of the devices installed in it, but because of what it does with the information it collects.

But where does all that data go?

This is where the important link comes in. All those sensors and devices generate and send data. A single sensor does not amount to much. But a modern building can ultimately contain hundreds or thousands of connected devices. That raises a logical question: can the building's digital infrastructure reliably support all that smart technology?

IoT can depend on, among other things, reliable connectivity, internal network provisions, wifi or other wireless protocols, cabling, telecom and technical rooms, sufficient capacity, availability and continuity, network segmentation and cybersecurity, and proper management and monitoring.

The comparison is simple: IoT makes a building smart, but the digital infrastructure is what allows that smartness to function. Anyone wanting to know more about the role of wireless coverage in this can find an explanation of wifi coverage in buildings.

From energy consumption to data consumption

Real estate professionals are used to talking about energy use. How much electricity does the building use? How much energy do the installations consume? How can we reduce that consumption? A smart building, however, also generates digital traffic.

Sensors measure, cameras transmit data, access systems communicate, building apps connect and installations exchange information. At the same time, tenants use cloud applications, video calls, mobile devices and, increasingly, AI. As a result, a modern building is increasingly dealing with data consumption alongside energy consumption.

This does not mean that every IoT device uses enormous amounts of data. Many sensors actually transmit very small amounts of information. The relevant point is this: the more a building's functions become digitally dependent, the more important the quality and reliability of the underlying digital infrastructure becomes.

IoT and AI: when the building starts learning

The difference between IoT and AI is easy to explain. IoT collects information. AI can help recognize patterns in that information and derive predictions or decisions from it.

Sensors can, for example, measure for years when certain parts of a building are being used. AI can analyze that data and help predict when spaces will be busy, when installations need maintenance, or how energy use can be managed more efficiently. In short: IoT gives a building eyes and ears, AI can help it understand what it observes with them.

Exaggerated claims about fully autonomous buildings are out of place here. Many applications are still under development, and human oversight, cybersecurity, privacy and sound data management remain important. The relationship between AI and real estate is a field that is very much in motion.

Is every building a smart building?

A building can contain dozens of smart devices without those systems being properly integrated. It is therefore useful to distinguish between three concepts:

• connected devices: individual devices that are digitally connected;
• IoT: devices and sensors that collect and exchange data;
• smart building: a building in which digital systems and data are deployed purposefully to improve performance, management or user experience.

Existing systems such as SmartScore look specifically at the technological capabilities and user functionality of smart office buildings. The IT-Label does not aim to replace such systems. The question the IT-Label asks lies more at the foundation: what digital infrastructure is present, and what digital delivery level does the user actually receive?

The link to the IT-Label

The IT-Label translates a building's digital quality into a series of classifications, from IT1+ PREMIUM with a fully digital ecosystem, through IT1 HIGH PERFORMANCE, IT2 PLUG & PLAY and IT3 READY, to IT4 CORE with mainly a digital connection point and IT5 SHELL, where the digital setup is largely left to the user. An overview can be found at the IT-Label classification.

IoT does not automatically mean a building receives a higher IT-Label. The IT-Label takes a broader look at the digital infrastructure and the digital delivery level. Relevant questions include: what digital provisions are present, how are they connected, who manages them, what does the tenant actually receive upon delivery, which provisions does the tenant need to arrange themselves, and can the infrastructure grow along with future digital use?

Above all, do not make it too technical

An agent does not need to become an IoT specialist. A valuer does not need to know how every communication protocol technically works. A property owner does not need to be a network engineer. And during a viewing, a tenant mainly wants to know: what can this building offer my organization digitally? That is the translation the IT-Label aims to make.

A building does not become smart because we stick the word SMART on it. A building becomes smart when technology, data and infrastructure actually add something to how the building is used. And the more buildings become digital and smart, the more relevant one fundamental question becomes: what can the building handle digitally?

Take the next step

Would you like to know what your building's digital quality means, or how to make it clear to tenants and buyers? Then read how the IT-Label works and explore the available offering through the knowledge base. From technology to use, from data to insight, from smart building to understandable digital real estate. Let's make visible together what is still invisible today.