As smart buildings start to enter the mainstream for most corporates, there’s a common challenge that keeps popping up – who should own the smart capability within a company?
Today, most offices are more than just desks, a coffee machine and passive-aggressive emails. They’re complex, tech-enabled ecosystems, replete with sensors, data analytics, and automated systems designed to optimise every inch of space or joule of energy. The full potential of these smart buildings, however, remains largely untapped due to the traditional silos between IT and real estate functions. If we want our buildings to be truly smart, it’s time to bring these two worlds together on some sort of committee, board or coalition dedicated to harmonising tech and real estate priorities.
Real estate teams are experts in occupancy, tenant relations, and asset value. They focus on reducing operational costs and maximising returns on property investments. Meanwhile, IT teams are skilled in network infrastructure, cybersecurity, and data analytics—areas critical for deploying and maintaining smart building technologies. Without close collaboration, the potential to create an optimised, cost-effective, and resilient smart building is almost impossible to achieve.
The problem is not that real estate and IT don’t communicate; it’s that they often operate with fundamentally different objectives and vocabularies. Real estate managers might be more concerned with foot traffic analytics, while IT managers worry about data privacy compliance and system resilience. When these agendas clash or simply fail to align, the result is a patchwork of tech investments that may tick individual boxes but fall short of an integrated, building-wide solution.
A simple case study for how this renders in real life might be the support received for a smart lighting system. What went wrong? Is it the electricity? Does the bulb need replacing? Has it lost its network connection? A firmware update failed? This troubleshooting usually results in support ticket ping-pong between departments.
A board or coalition can bridge the gap, creating a unified leadership structure that harmonises real estate and IT priorities around outcomes rather than operational ownership. This group would not merely coordinate between teams but actively shape the strategy for smart technology investments, focusing on shared outcomes like energy efficiency, tenant experience, and data security.
Here’s why I think a coalition is crucial:
- Unified Vision and Strategy: An aligned strategy prevents fragmented initiatives and duplication of effort.
- Efficient Use of Resources: IT and real estate budgets can be optimised when both teams are on the same page.
- Enhanced Cybersecurity and Data Privacy: The more connected the building, the greater the cybersecurity risk. IT teams, with their expertise in securing complex systems, are essential for navigating these risks before something unsuspecting goes wrong
- Improved Tenant Experience and Retention: Tenants now expect connectivity, energy efficiency, and adaptable spaces, especially in a world where hybrid work models have become the norm.
- Sustainability and Regulatory Compliance: Building efficiency is a regulatory issue, as more countries enact stricter energy codes, real estate and IT must collaborate to avoid penalties and meet rising ESG expectations.
Establishing a coalition is more than just about having regular meetings. To be effective, it must have a clear structure, accountability, and mandate. Here are some steps to take to make this happen:
- Establish clear objectives and metrics
- Appoint a board-level champion
- Create cross-functional roles where the cost is shared
- Implement robust knowledge-sharing practices
- Institute regular review cycles
The real estate industry is facing unprecedented challenges, from the rising cost of energy to new sustainability mandates and a transformed tenant demand profile. Smart building technology offers a way forward, but only if its deployment is strategically managed by a unified coalition. It is possible to unlock at least $3 in business value for every $1 invested in smart building technology.
Moreover, consider the risk of inaction. Failing to integrate IT and real estate functions doesn’t just slow down progress; it leaves portfolios vulnerable to cybersecurity risks, operational inefficiencies, and tenant dissatisfaction. In the long run, the absence of a cohesive smart strategy could mean falling behind competitors who have invested in more seamless, technology-enabled spaces.
In Dr Marson’s monthly column, he’ll be chronicling his thoughts and opinions on the latest developments, trends, and challenges in the Smart Buildings industry and the wider world of construction. Whether you're a seasoned pro or just starting out, you're sure to find something of interest here.
Something to share? Contact the author: column@matthewmarson.com
About the author:
Matthew Marson is an experienced leader, working at the intersection of technology, sustainability, and the built environment. He was recognised by the Royal Academy of Engineering as Young Engineer of the Year for his contributions to the global Smart Buildings industry. Having worked on some of the world’s leading smart buildings and cities projects, Matthew is a keynote speaker at international industry events related to emerging technology, net zero design and lessons from projects. He is author of The Smart Building Advantage and is published in a variety of journals, earning a doctorate in Smart Buildings.