When I was at Magnum Energy Solutions, I directly contributed to creating and building smart thermostats and other energy efficiency solutions to go mainstream and become smart. That experience gave me a deep appreciation for how the Internet of Things (IoT) can revolutionize the way we interact with our environment.
Over the past five years at SmartThings, I’ve watched that same technology scale from individual devices to entire buildings and portfolios. Today, smart IoT systems are transforming commercial real estate, streamlining operations, improving tenant experience, and unlocking significant energy and cost savings. As buildings account for nearly 40% of world energy consumption and 30% of CO2 emissions, the potential is mind-boggling and radically personal for all of us who’ve been along on this ride from the circuit board to the cloud.
Foundations of the Smart Building Revolution
Modern smart buildings utilize sensors, connectivity, and automation platforms to track and respond in real time. Take occupancy sensors that switch off lights and reduce HVAC output when the rooms are empty, or smart meters that report electricity usage per circuit. All of this information is fed to a Building Management System (BMS), which can pre-emptively optimize its operations.
What’s new is the way such systems learn continuously. Take dynamic HVAC: it draws on weather forecasts and occupancy levels, adjusting settings to optimize energy use and occupant comfort.
Larger, More Intelligent, Greener
Current studies indicate growing momentum:
- 4,400 sensors and AI gateways were installed in Ontarian schools and offices and saved more than $250,000 in just three months by optimizing air quality, temperature, and occupancy controls (IoT For All, 2025)
- Market predictions show that IoT devices in non-residential buildings will reach 4.12 billion by 2030, with gateways facilitating the integration of legacy systems and ensuring effective edge processing (Memoori Research, 2024)
- Retrofit projects like Keppel Bay Tower in Singapore, a zero-energy retrofit completed in 2024, features smart lighting, smart HVAC intake, solar film, and a digital twin to decrease energy usage by ~30%, achieving net-zero at just 0.7% of building value (Reuters, 2024)
Cutting-Edge Tech in Action
One of these academic innovations, the IoT-based smart lighting system (ISLS), reduced lighting energy usage by ~80% in single-occupant spaces when tested in 2025 . These types of systems utilize real-time detection, optimization algorithms, and remote controls, transforming conventional systems into intelligent energy-saving solutions.
And the integration of AI into HVAC is advancing rapidly. At Manhattan’s 45 Broadway building, using BrainBox AI reduced HVAC energy use by 15.8%, saving $42,000 and cutting 37 tons of CO₂ in one year. AI’s ability to ingest weather, occupancy, and system data and proactively adjust building systems is proving both scalable and financially viable.
Why Building Owners and Tenants Win
The return on investment is clear: intelligent buildings deliver operating cost savings, valuation premiums, and appeal to environmentally conscious tenants. Investors are sitting up and taking notice; intelligent buildings are commanding premium rental yields and resale prices. Tenants enjoy personalized settings with enhanced air quality, lighting, and thermal comfort, all of which are converted into retention and productivity.
Steering Through Challenges: Privacy and Interoperability
As someone in this space, I’ve seen how data privacy can’t be an afterthought. With sensors collecting occupancy and environmental data, clear privacy policies are essential. Many occupants prefer to be notified directly, rather than discovering sensors by chance.
Interoperability remains a bottleneck. Many buildings are retrofits with legacy systems; gateways are bridging this divide, but standards are still evolving. Cybersecurity is equally critical—each connected device represents a potential vulnerability.
The Way Forward for Smart Real Estate
The future is bright. AI, 5G, digital twins, and edge computing are converging; buildings will not just respond, they’ll preact. Integrating renewables, climate resilience, and resilient HVAC will just become smarter. But true progress lies in harmonizing innovation with good data governance.
To building pros and enthusiasts, it’s obvious: smart, IoT-connected buildings are not a trend; they’re the future.
References
- Boosting energy efficiency: IoT case studies from leading enterprises, MoldStud, https://moldstud.com/articles/p-boosting-energy-efficiency-iot-case-studies-from-leading-enterprises
- How AI is making buildings more energy-efficient, Time, December 11, 2024, https://time.com/7201501/ai-buildings-energy-efficiency/
- How choosing renew over building new is saving Keppel money and carbon, Reuters, May 21, 2024, https://www.reuters.com/sustainability/climate-energy/how-choosing-renew-over-building-new-is-saving-keppel-money-carbon-2024-05-21/
- Le, T., Wang, A., Yao, Y., Feng, Y., Heydarian, A., Sadeh, N., and Tian, Y. (2023). Exploring smart commercial building occupants’ perceptions and notification preferences of IoT data collection in the United States [preprint]. arXiv. https://arxiv.org/abs/2303.04955
- Obioma, P., Agbodike, O., Chen, J., and Wang, L. ISLS: An IoT-Based Smart Lighting System for Improving Energy Conservation in Office Buildings [preprint], March 4, 2025, https://arxiv.org/abs/2503.13474
- Smart Building Sensors: Real Cases Show Major Energy Savings & Cost Cuts, IoT For All, July 9, 2025, https://www.iotforall.com/smart-building-sensor-case-studies
- Smart buildings to see exponential growth in IoT devices by 2030, SecurityInfoWatch.com, March 6, 2025, https://www.securityinfowatch.com/industry-news/article/55272887/smart-buildings-to-see-exponential-growth-in-iot-devices-by-2030
Nikhil Jain is a Senior Partner Technology Manager at Samsung SmartThings, where he leads strategic B2B partnerships and AI-driven IoT integrations across global smart home ecosystems. A Forbes Technology Council Member, IEEE Senior Member, IETE Fellow, and ACM professional member, he is deeply involved in advancing sustainable innovation and digital transformation.
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