Jennifer Nuckles, Chairperson & CEO, R-Zero, highlights the increasing pressure on commercial real estate to meet climate guidelines as regulations worldwide impose emissions reduction targets. The commercial real estate sector is a leading producer of carbon emissions globally, contributing to about 40% of combustion-related emissions. To achieve a net-zero building supply by 2050, a significant reduction in both direct and indirect building emissions is required by 2030, according to the International Energy Agency.
Various benchmarks, such as New York’s Local Law 97, require significant reductions in carbon emissions, with municipal government operations needing to achieve a 40% reduction by June 2025 and all New York buildings by 2030. However, many buildings are not on track to meet these targets, with the perception that reducing carbon emissions is costly and lacking tangible returns. Technological innovation has changed this outlook, as intelligent building management software and performance analytics can drive energy efficiency and sustainable outcomes without compromising tenant experience and cost efficiency, leading to measurable returns on investment and competitive advantages.
Investing in technology can create a competitive advantage for building owners in two key areas. Firstly, tenant experience is crucial as workplaces evolve with hybrid work models, demanding well-ventilated, comfortable, automated, and eco-conscious spaces. Failing to meet these demands can result in increased vacancies and lease turnover. Secondly, many buildings lack advanced intelligence systems to meet efficiency targets set by regulatory interventions, leading to potential penalties and fines. Building owners and operators must start planning and investing in emissions benchmarks now to avoid financial impact and be better positioned for growth in the market.
Investing in intelligent building technology can provide a high-fidelity picture of building responsiveness, offering insights into building performance and controls. This enables property owners and operators to identify inefficiencies, streamline asset operations and costs, improve indoor comfort and space performance, and work towards energy certifications. By gaining a comprehensive understanding of their building’s operations, they can proactively address issues and comply with regulatory standards, positioning themselves for growth and success in the market.
