There is no hiding that the built environment contributes significantly to global carbon emissions. However, while 11% of the built environment’s carbon emissions come from embodied carbon, a staggering 28% comes from operational emissions. Commercial offices are heavy consumers of light, heat, and water; given that most companies are wanting to meet net zero targets, making offices green is essential.

Proptech can provide insights into resource use, occupancy levels, and operational inefficiencies. With diverse functionalities, proptech solutions can help landlords and occupiers meet sustainability requirements and manage rising energy costs.

According to Savills Impacts 2022, over the past decade, venture capital investment into proptech has grown from less than $1 billion in 2013 to a peak of over $22 billion in 2021 across nearly 1,200 deals. By October 2022, proptech firms received investment of over $10 billion.

Less than 9% of commercial real estate has adopted digital technology or proptech solutions. Given mounting energy pressures and soaring costs, proptech integration can provide essential insights into energy efficiency, thereby helping firms in cost management.

Data Management to Optimise Operating Expenses

Property owners and occupiers will need to invest in technologies to remain competitive and meet the demand for sustainability. There are two key elements to a successful proptech strategy, including the Internet of Things (IoT) and data management.

Internet of Things (IoT) devices are web-connected sensors and automation tools that can be used for ventilation, lighting, and utilities, showing to-the-minute usage data. IoT can also include spatial intelligence, security, and people counting sensors, so firms understand how and when space is being used.

Data management plays a vital role in understanding buildings and their energy consumption. Previously, each device and sensor had an individual data output, which made collecting comprehensive insights difficult. Now, data management is more effective because a single software point can provide an overall picture of the use and efficiency across individual office spaces and entire buildings.

Mr Neil MacGregor, Managing Director at Savills Viet Nam noted: “Currently, many of Viet Nam’s office buildings are more than 20 years old. As such, operational efficiencies are essential. As a real estate manager, Savills welcomes proactive developers looking to lead the sustainability movement in Viet Nam. Our property management experts support developers in implementing the most appropriate management system for their buildings, to ensure optimised performance.”

Neil also mentioned that promoting data management is the determinant. Building management systems are fully capable of collecting operational data, including air system performance, power consumption, and tenant density. The system will use that data to improve operations and monitor and minimise carbon emissions into the environment. Moreover, the data collected can provide insights that assist landlords with suitable leasing strategies. An intelligent property management system provides insights and opportunities for energy, water, and heating savings, as well as insights for individual offices, which underpin good ESG reports for individual companies.

Viet Nam’s Proptech Outlook

In the near term, Proptech will have the added benefit of helping lower energy costs and providing insights into how offices are used daily, which has become more important to monitor and understand, following the rise of hybrid work post-pandemic. Looking longer term, Matthew Fitzgerald, Director of Cross Border Tenant Advisory – EMEA, commented “As the industry grapples with sustainability pledges and regulations the focus on modern technologies, particularly proptech, as a solution is significant and will only continue to grow. Given the scale of the challenge, the industry needs to find new revenue streams and value to enact this change.”

These solutions allow decision-makers to implement more effective strategies to reduce environmental impact, improve well-being, and reduce operating costs across individual offices and entire buildings.

Although the Vietnamese market is still new to proptech and applying high-tech solutions, Chris Marriott, CEO of Savills Southeast Asia, emphasised: “Viet Nam has a huge demand for high technology. The population are young and can quickly adapt to technological changes.”

Conclusion

If you are looking to implement proptech solutions, learn about our homegrown proptech app, Property Cube or contact our Property Management team.