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4 Ways Smart Buildings Increase Net Operating Revenue for Commercial Real Estate

Sep 28, 2018 2:15:00 PM

4 Ways Smart Buildings Increase Net Operating Revenue

Increasing your net operating revenue is sometimes easier said then done. However, building automation systems are an under-leveraged CRE technology offering huge potential to not only improve the occupant experience, but also increase your buildings' operational efficiency and bolster the balance sheet.

But how exactly can a BAS increase that revenue? Keep reading to find out!

1. Increase Net Operating Revenue by Filling Vacancies

Increase Net Operating Revenue by Filling Vacancies with Technologies like Building AutomationSmart buildings attract and retain tenants. This is one of the many reasons why building automation systems allow building owners and brokers to increase their net operating revenue by reducing vacancies and increasing lease revenue. This is important as vacancies are a double-edged sword as they cut into operating costs to maintain, while market listing costs to prospective tenants accumulate until the space is leased – all without a revenue stream. A smart building automation system can attract tech- and sustainability-savvy tenant and workforce, plus dynamically adjust to increasingly fluid occupancy loads found in coworking and other fluid office settings, as tenants change through the life of the building occupancy patterns.

2. Increase Lease Value per Square Foot

Increase 11.8% rental valuesA smart building is a more attractive building. In addition to the energy savings and sustainability benefits, a connected building can yield higher rates per square foot – conservatively adding $.10/ per sq. ft. Studies have indicated that high-performance buildings can increase the rental values as much as 11.8% for commercial buildings. Together, these factors can start adding value to your property assets, in addition to the multiple capital and operational cost savings identified here.

3. Increase Lease-Up Rates and Property Values by Becoming a Smart LEED Building

Smart LEED Buildings Increase Lease-Up Rates and Property Values

In addition to financial incentives, LEED buildings have faster lease-up rate and retain higher property values. The LEED program focuses on helping tenants and landlords collaborate. After receiving a LEED certification, office tenants often integrate green decision-making throughout the leasing process — encompassing team selection, site selection, negotiations, lease language, build-out and the tenant’s ongoing operations within the leased space. The Arc score integrated into 75F software offers benchmarking for both LEED and non-LEED buildings. And, the WELL Building standard introduces further value for occupant experience and improved employee productivity.

4. Support Corporate Values with Sustainable Buildings

Sustainable Buildings Support Corporate ValuesMore businesses recognize green business is good business, and their values and corporate citizenship efforts are integral to their brand. A smart and sustainable building adds value for management, while also delivering financial benefits. There are several sustainability-driven smart building programs that can help you make your progress measurable and recognized. 

Smart Buildings also Reduce Operating Expenses

Building automation solutions don't just add value, they help cut CapEx and OpEx operating expenses too, contributing to NOI with energy savings (30-50% typically, with 75F), remote and predictive maintenance savings, extended equipment life and more.

Interested in how 75F's automated building control solutions can increase your commercial property value and net operating revenue? Download the Smart Buildings Boost Portfolio Value eBook to learn more!



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