For real estate owners it is both a challenging and exciting time, as they face more pressure than ever to deliver material differences to the working environment, meet sustainability goals, unlock financial gains and cope with changes in their own workforce.
To meet the evolving demands of various stakeholders, building owners are increasing the demands they place on building services firms.
Historically, these firms have established business models built around the hourly rate of engineers or maintenance professionals sent to sites to solve problems. This type of model is too narrow, too reactive and insufficiently sophisticated to deliver the types of solutions which building owners and their stakeholders now require.
In today’s environment, it’s no longer enough to meet expectations; building services firms will also face pressure to differentiate and enhance their service offerings. Envizi commissioned independent analyst firm Verdantix to research the current state of building optimization technology adoption in the building services sector in North America.
This research indicates real estate owners are looking for more technology-centric solutions and are targeting investment in building optimization technologies across their portfolios over the next five years. Building owners are demanding that services firms:
Become trusted advisors in building technology
Most real estate decision-makers have a medium-term strategy for adopting real estate and facility management software across their portfolios over the next five years. Services firms seeking to retain clients and grow revenue need to get ahead of this curve to become a trusted advisor to clients on where they should be investing, such as a building optimization solution that will help them to maintain occupant comfort or make more informed capital planning decisions. If they wait for clients to come to them, service firms risk being unprepared and losing their contract to a vendor with a stronger technology focus.
Transition to outcome-based performance contracting.
Outcome-based performance contracting focuses on the results of building services and not on the work itself. These contracts are attractive to clients interested in buying solutions, not just services. In these contracts, specific performance targets are agreed between the solution provider and the building owner. These may include achieving a specific comfort metric, limiting downtime of critical assets or reducing utility bills by a specific percentage. The solution provider will be paid only if it achieves these outcomes, but it has flexibility on how it meets these targets.
Successful vendors operating under this model will be the ones who have accurate data and are most effective at using it to drive down their costs – this is a tough ask for a services firm that relies on sending technicians to a site once a maintenance request has been logged.
Provide an environment that supports building occupant productivity.
For many building owners, the core focus is on ensuring occupant satisfaction and not on maintenance of the physical building. They expect their services firms to support this objective by ensuring that tenants can trust that equipment will work when needed and that service requests are handled as efficiently as possible.
Service providers need to adapt to this changing environment, but are they? Download the Building Optimization Benchmark Report to learn more.