How real estate can make smart use of smart tech

COMMENT As a smart city pioneer, Leeds has led the charge in developing new technologies in recent years to improve and enhance the experience of people visiting, living and working in the city, giving it a fantastic platform from which to grow. Able to leverage a great business community, a leading education network and a mature ecosystem of innovative tech companies, there is a growing sense of opportunity in the city, and an awareness of the need for the public and private sectors to come together in a connected way to push Leeds to the next level. The pandemic and the government’s ambitious targets for sustainability, along with the continued growth of the city, mean there has never been a better time to make Leeds smarter, more efficient and more sustainable. And with the pandemic having accelerated the pace of this change, cutting-edge technology and green infrastructure plans mean a focus on sustainability is no longer simply a nice-to-have for properties in the city – it is business critical. Changing needs The build-to-rent sector has a big role to play as a result of tenants’ needs and preferences changing in ways that were unimaginable pre-pandemic. Before the pandemic, employees were tied to homes within commutable distances of city centre offices, but a more agile approach has led to rents rising by as much as 5.5% year-on-year in the countryside. So as working norms change, so too are expectations – and connectivity is at the heart of this. Any landlord trying to attract tenants in an ever more saturated market must be able to offer high-quality technology infrastructure. The government is also calling for greener, warmer and more energy efficient homes. However, despite BTR schemes having traditionally been built with more modern methods of construction, there is a growing realisation that this is no longer enough on its own. Buildings must continue to evolve in line with the sustainability agenda and changing tenant priorities, and technology needs to be at the heart of this evolution. Those that fail to recognise this and refuse to offer the connectivity required for post-pandemic living will find their buildings becoming obsolete and unattractive. Designed to last Smart sensor technology will play an increasingly important role here, helping to control energy distribution across a building in real time and ensuring that power for lighting and heating rooms is only being consumed in parts of the property where someone is present. Artificial intelligence and self-teaching algorithms can also help. Another Covid-led development in modern BTR buildings is the integration of touchless technologies into BTR and co-living spaces, enabling a safer and healthier environment for staff and residents alike. Some property owners and managers have historically been hesitant to adopt smart hardware, as they fear it will quickly grow outdated and need to be replaced with the next newest invention, or that hardware designed to solve issues for today’s demands will even be around long enough for owners to realise the promised return on investment. To be widely adopted, the best technology must not only deliver for the present but be able to accommodate tomorrow’s innovations as well. For that to be possible, it is important that landlords and proptech developers work together to ensure the technologies are both cost effective and sufficiently adaptable to meet future change. Proptech can offer a competitive advantage to landlords and investors, helping to bring about higher yields, better rents and a more responsive, higher-quality rental product. Intelligent building management systems also improve the ability to monitor issues such as damp or leaks and allow landlords and managers to catch issues at a much earlier stage, thereby reducing overheads and increasing tenant retention rates. The benefits of a more responsive, technology-driven and socially responsible living environment are plain to see and can no longer be ignored. For those cities embracing new technologies, the horizon looks positive, and I for one hope that Leeds continues to lead the charge. Judy Fawcett is a partner at Shoosmiths