Almost seven in 10 (69%) of European real estate institutional investors will increase the amount they spend on technology over the next three years to improve energy efficiency across their portfolios, new research1 by re:sustain, the leading science-based technology platform which optimises the energy consumption of real estate assets reveals.
Re:sustain's research with 200 European real estate institutional asset managers in the UK, Germany, France, Netherlands, Spain and Italy, with a combined AUM of €296 billion, finds improving technology is the most effective way to improve energy efficiency.
When asked the main advantages of technology when it comes to improving energy efficiency of buildings, 73% of respondents say it delivers faster results - and 55% say it is cheaper - than upgrading or retrofitting.
Almost two thirds (61%) highlight the lower levels of disruption from using tech to improve energy efficiency versus retrofitting, while 50% say it is easier to secure tenant buy in compared to upgrading a property. Almost half (46%) of real estate managers say technology helps to protect their assets' value, while 17% point to the ability to use technology across old and new buildings.
Almost three-quarters (73%) of respondents say investing in technology which can optimise a building's systems to reduce energy usage remotely will be the most impactful in managing energy consumption, followed by 60% who cite investment in a new building management system. This compares to 54% who say investment in new systems such as HVAC and lighting is the most effective way to reduce energy consumption, and 14% who believe improving the behaviours of occupants is the most beneficial.
Nearly nine out of ten (89%) real estate asset managers say the use of technology is important to enhancing energy consumption strategies across their portfolios. One fifth (20%) are neutral and 2% say technology is not important at all.
However, the research reveals the use of technology is not widespread across investors' portfolios.
While 51% of respondents say they use technology in new buildings, only 18% say they do so in older properties. Further, just 3% of those surveyed say technology is in use across all buildings in their portfolios, with 21% using it in offices only.
Real estate managers use technology for multiple purposes across their portfolios, with 69% employing it to manage buildings remotely. Just under two-thirds (64%) of respondents say technology is beneficial for monitoring energy consumption while 30% use systems to model and understand where and how improvements can be made.
Katie Whipp, Chief Business Officer at re:sustain, said: "Real estate managers are under pressure from all sides to manage their energy consumption. Regulation is tightening across Europe and at the same time, tenants are demanding sustainable and energy efficient buildings to meet their own ESG commitments.
"Bringing properties into line with the green transition on budget and on time, can be a daunting prospect, especially for those managers facing major retrofits or upgrades. Our research shows that asset managers recognise the importance in using technology has evolved considerably to understand their buildings and make positive changes without unnecessary capital expenditure. But the use of tech is far from universal. It is essential that the sector utilises technology to reduce energy consumption, manage costs and ensure a smooth journey to Net Zero."
re:sustain was founded in 2021 by scientists who recognised that while data was being collected about real estate energy consumption, it wasn't improving usage. To solve this problem, the re:sustain team developed innovative technology which uses collected building management system data (BMS) to create a highly calibrated digital twin of each building - an accurate model that reflects real asset performance. This dynamic thermal model allows for precise simulations and analyses, eliminating guesswork and enabling targeted interventions.
The proprietary re:sustain engine processes the digital twin data and the BMS data to identify inefficiencies and improvement opportunities, whilst calculating potential carbon savings. This remote approach allows for targeted optimisations and detailed mechanical insights on existing systems, reducing energy use, carbon emissions, and operational costs in support of sustainability goals—all without requiring Capex from asset owners or business interruption for occupiers.
To date, buildings using re:sustain technology have enjoyed 37% average annual energy savings in a process that takes just four to six weeks to implement.
