Smart buildings can give retailers a competitive edge, according to a report from Johnson Controls.

The report reveals investments in smart buildings are essential to enhance sustainability and security, and save money. Three-quarters of commercial real estate and retail companies say smart buildings are important to accelerating digital transformation efforts.

Nearly two-thirds of respondents say smart buildings are important for reducing costs, accelerating sustainability initiatives and driving business growth.

Building on a 2023 commissioned study (www.johnsoncontrols.com/smart-buildings/forrester-2023-2024) conducted by Forrester Consulting on behalf of Johnson Controls, the spotlight report – “Cracking The Smart Buildings Code: A Spotlight On Retail And Commercial Real Estate” – reveals that investments in smart buildings are essential for retailers aiming to enhance sustainability and security, and save money.

“Smart buildings are not just a trend; there is growing recognition they are a necessity for modern commercial real estate,” said Vijay Sankaran, chief technology officer at Johnson Controls. “This report highlights the urgent need for integrated systems and expert partners to navigate the complexities of today’s commercial real estate market to achieve long-term success.”

The digitalissation of buildings provides an immense opportunity to gain a clearer picture of the operation of facilities to create sustainable, healthy and safe environments, a critical differentiator for commercial real estate tenants and buyers. Notably, 75% of commercial real estate and retail companies say smart buildings are important to accelerating their digital transformation efforts. Nearly two-thirds indicate smart buildings are important for reducing costs, accelerating sustainability initiatives and driving business growth. These results reveal that retail and commercial real estate companies are seeking outcomes that have a positive impact for building owners, occupants and the bottom line.

Investing in smart buildings is a competitive differentiator. Smart buildings not only help commercial real estate and retail firms attain sustainable, secure and efficient outcomes, but they also competitively differentiate their facilities in the market.

Only 13% of commercial real estate and retail firms say they have fully integrated building systems, leading to inefficiencies and increased risks. This lack of integrated data and insight is reducing operating efficiencies (62%) and customer loyalty (59%) and increasing regulatory penalties (57%).

Building data are crucial for decision-making across various departments, including security, sustainability and facilities management, and many companies recognise the current risks they face by having limited data. They seek partners with technology, integration capabilities and industry experience to drive smart building initiatives.

“This report confirms what we’re already hearing from our customers, that smart buildings are foundational to the design, operation and maintenance of indoor environments, ultimately driving value,” said Julie Brandt, president of building technology in North America for Johnson Controls.

The report is available at www.johnsoncontrols.com/insights/2024/white-paper/cracking-the-code-cre.