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How generative AI is transforming the future of commercial real estate

Umar Riaz 31 Aug 2023
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What EY can do for you

The right smart building strategy can enable a diverse range of capabilities to significantly enhance the operational efficiency and effectiveness of buildings. Coupled with the utilization of advanced smart building technology and data-driven systems, owners, operators and tenants have the power to minimize energy consumption, lower greenhouse gas (GHG) emissions, create healthier indoor environments and enhance the overall occupant experience. With a focus on delivering increased value to both owners and occupiers, the EY Smart Building team can help you realize the future of sustainable and intelligent building solutions.

The challenge with buildings

The challenge posed by buildings is a complex one, encompassing environmental sustainability and public health concerns. Buildings have a substantial impact on the environment, contributing a staggering 40% of GHG emissions. This highlights the pressing need for adopting more sustainable practices in both the construction and operation of buildings.

  • Accessibility description#Hide description

    "A visual representation of three black boxes is seen, arranged side by side. Each box contains the following texts in yellow:

    'Buildings contribute a staggering 40 % of greenhouse gas emissions,' emphasizing the significant environmental impact of buildings in the context of greenhouse gas emissions."

    “HVAC systems account for approximately 40% of a building’s energy usage.”

    “Approximately 30% of the electricity consumed in buildings is waste.”

Energy consumption constitutes a sizable portion of a building’s operating expenses, with heating, ventilation and air conditioning (HVAC) systems accounting for approximately 40% of this energy usage¹. However, approximately 30% of the electricity consumed in buildings is wasted, revealing persistent inefficiencies in these systems². In addition, HVAC systems naturally degrade in performance over time, experiencing an average decline of around 30% within one to two years. This decline not only results in increased power consumption for the same output but also places excessive strain on the equipment. Consequently, this heightened strain raises the risk of failure and reduces the operational lifespan of the systems. To address these issues, proactive maintenance and optimization measures are crucial in mitigating energy inefficiencies and ensuring the long-term reliability of HVAC systems.

Furthermore, the significance of adequate ventilation within buildings has become increasingly evident, particularly in the context of pathogen transmission. With people spending approximately 90% of their time indoors³, it is imperative for buildings to prioritize the creation of healthy and productive environments for occupants. However, achieving this goal often requires an increase in energy consumption, which contradicts the inadequate ventilation levels prevalent before the pandemic. Striking a delicate balance between improving indoor air quality and optimizing energy efficiency presents a substantial challenge in building design and operation.

What EY Smart Building services can do for you

EY Smart Building services provide a comprehensive approach to address the unique challenges faced by owners and building occupants. These offerings leverage innovative technology, data analytics and industry expertise to enable organizations to transform their buildings into intelligent, efficient and sustainable spaces.

EY Smart Building services encompass a wide range of capabilities designed to drive value and enhance building performance. These solutions can be categorized as follows:

  • Operational efficiency:

    We help organizations enhance their operational efficiency by leveraging advanced technologies such as Internet of Things (IoT), data analytics and automation. By aligning strategies, occupancy patterns and operations, organizations can optimize costs, automate decision-making processes and detect faults in real time. This leads to streamlined workflows, improved resource management and reduced operational expenses.

  • Health, safety and wellbeing:

    Our Smart Building solutions help prioritize the health, safety and wellbeing of occupants. By deploying IoT technology and advanced analytics, organizations can create healthy and productive indoor environments. These solutions enable real-time monitoring of air quality, occupancy levels and other factors that impact occupant comfort and safety. By ensuring compliance with health and safety regulations, organizations can enhance the overall wellbeing of their occupants.

  • Sustainability:

    We can help organizations meet their sustainability goals by deploying smart technologies that enhance energy usage and reduce carbon emissions. Through real-time monitoring, predictive analytics and algorithms, organizations can identify energy-saving opportunities, enhance building performance and automate energy usage analysis. This leads to improved energy efficiency, reduced environmental impact and significant cost savings.

  • Enhanced human experience:

    Our Smart Building solutions focus on creating an enhanced human experience within buildings. By leveraging technology-enabled environments, organizations can support effective hybrid work models, foster collaboration and improve employee engagement. These solutions include advanced workplace technologies, seamless connectivity and personalized experiences that enhance productivity and satisfaction.

EY Smart Building solutions provide organizations with the capabilities to transform their buildings into intelligent, efficient and sustainable spaces. By enhancing operational efficiency, prioritizing health and safety, achieving sustainability objectives, and enhancing the human experience, organizations can unlock significant value and gain a competitive edge in the rapidly evolving building management landscape.

EY Smart Building services approach

Our services and methodology are tailored to meet the specific needs, scale and sector context of each client, helping them to effectively select, implement and integrate technology into their environments, drive operational efficiency, make data-driven decisions, and continuously enhance their capabilities in managing people and physical spaces.

EY Smart Building services vendor ecosystem

Our carefully curated ecosystem of third-party technology solutions encompasses various areas of smart building management. These solutions include:

  • AI-powered smart building software:

    This solution serves as a centralized platform for portfolio-wide operations. It offers a comprehensive range of features such as dashboards, command and control functionality, fault detection and diagnostics, continuous digital commissioning, and more. Powered by AI, this software provides a single-pane-of-glass view to effectively monitor and manage building operations.

  • AL/ML-driven digital twin:

    Our ecosystem includes a digital twin solution that utilizes advanced algorithms and machine learning to create virtual simulations of buildings. These digital twins enable proactive decision-making by providing multi-scenario simulations. With physics-enabled analytics incorporating principles like thermodynamics and computational fluid dynamics, the digital twin empowers organizations to enhance building performance and efficiency.

  • Leading networking solution provider:

    We collaborate with a leading provider of networking solutions, offering reliable Wi-Fi, networking appliances and collaboration technologies. These solutions promote seamless connectivity within smart buildings, facilitating efficient communication, data transfer, and collaboration between devices and systems.

  • IoT sensor solution providers:

    We have teamed with several IoT sensor solution providers. These solutions enable the measurement and analysis of various building parameters, including occupancy levels, foot traffic patterns, indoor air quality and more. By collecting and analyzing real-time data from these sensors, organizations can gain valuable insights to enhance space utilization, improve occupant comfort and enhance overall building performance.

By building an ecosystem of third-party technology solutions, we offer a comprehensive suite of tools and capabilities to transform buildings into intelligent, efficient and sustainable spaces. This carefully selected ecosystem empowers organizations to leverage advanced technologies and data-driven insights for effective smart building management.

  • References#Hide references

    1 HVAC system will improve commercial building energy efficiency (environmentalleader.com)

    2 U.S. Environmental Protection Agency. C+I_brochure.pdf (energystar.gov)

    3 U.S. Environmental Protection Agency. The Inside Story: A Guide to Indoor Air Quality | US EPA

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