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JPMorganChase Tower at 270 Park in New York is equipped with over 100,000 sensors. You may not see them, but you feel their impact. 

For example, window shades adjust automatically based on occupancy levels to minimize environmental impact, while daylight sensors in open office areas create a base level of light with no manual switches necessary. 

The sensors are part of a comprehensive building automation system (BAS) designed to maximize comfort, sustainability and security. 

The firm’s global headquarters isn’t the only place using building automation. Like other types of proptech, building automation systems continue to gain adoption across commercial real estate sectors, including multifamily, mixed-use, retail, industrial and office properties. Find out more about building automation and how to incorporate it into your properties. 

What is a building automation system (BAS)?

A building automation system is a centralized network that monitors and controls property-wide infrastructure, including mechanical, security and HVAC systems.

BAS components

Building automation systems generally include several components:

  • Sensors provide essential data about the building’s environment and may detect changes in temperature, occupancy, lighting levels and humidity. 
  • Controllers process sensor data and make decisions based on pre-programmed algorithms, automatically adjusting systems to maintain ideal conditions.
  • Actuators execute the commands from the controllers, such as opening or closing dampers and motorized valves.
  • User interfaces, such as computers, touchscreens and mobile apps, allow operators to monitor, control and configure systems.

      

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Benefits of building automation systems

Building automation systems can help commercial real estate owners and operators:

  • Reduce costs: Building automation systems use real-time data to optimize operations and cut expenses. For example, systems can minimize indoor lighting costs by automatically adjusting window coverings to maximize natural light, reducing electricity consumption during peak daylight hours. 
  • Increase energy efficiency: Building automation systems automatically adjust temperature, lighting and ventilation based on occupancy patterns and time of day. These modifications can significantly reduce energy consumption and a building’s carbon footprint, which could make multifamily properties eligible for Fannie Mae and Freddie Mac green financing.
  • Create more flexible spaces: Smart building data helps detect changes across your property. For example, lighting systems could change color to indicate when conference rooms exceed capacity. Data from building automation systems can also support automated scheduling, such as parking-space allocation and conference room reservations.
  • Enhance comfort and productivity: Building automation systems create more comfortable environments that improve occupants’ well-being and productivity. For example, building automation can identify changes in air quality and adjust ventilation accordingly.
  • Improve monitoring and maintenance: Real-time data monitoring can help detect equipment issues early on. Operators can schedule maintenance proactively, avoid equipment breakdowns and potentially extend systems’ lifespans.

“Building automation systems give real-time data, which leads to a more results-driven model and a more proactive approach,” said Richard Patapoff, Head of Proptech Solutions, Commercial Banking at J.P. Morgan. 

“Cost savings aren’t just experienced in lower utilities, equipment longevity or less downtime—BAS can improve the entire operating model,” he said. “These systems are critical for centralizing maintenance and better managing service providers—both of which can lead to improvements in expenses and performance.” 

4 factors to consider before implementing a BAS

Successful building automation implementation involves strategic planning to ensure systems align with your building’s needs and long-term goals. Consider these key factors:

  1. Operational costs: Building automation systems come with significant upfront costs, including software, hardware, installation and integration. Software updates, repairs and regular maintenance can also add up. Make sure you have the capital necessary for initial and ongoing automation expenses.
  2. Integration with existing infrastructure: Integrating different systems and protocols can be challenging, so make sure HVAC, lighting, security and other building systems are compatible. 
  3. Adaptability: As technology advances and buildings evolve, your building automation system will need to accommodate new devices, sensors and automation features. To avoid an expensive overhaul in the future, consider cloud-based and modular solutions.
  4. Cybersecurity concerns: Building automation systems may be vulnerable to cyberattacks, leading to security breaches, privacy violations and operational disruptions. Implementing secure authentication protocols, encrypted communication and regular security updates can help protect infrastructure from cyberthreats.

The bottom line: The use of building automation systems will likely increase in the coming years, with benefits such as lower costs, increased energy efficiency and improved occupant comfort outweighing drawbacks. Before implementing a system, make sure to evaluate upfront costs, integration with current systems and cybersecurity measures.  

Building automation isn’t the only way to make operations more efficient. Find out how real estate as a service (REaaS) can help you gain a competitive edge.

JPMorgan Chase Bank, N.A. Member FDIC. Visit jpmorgan.com/commercial-banking/legal-disclaimer for disclosures and disclaimers related to this content.

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