Verdantix Survey Finds Huge Variation In Worldwide Real Estate, Energy & Facilities Budgets For 2018 And Reveals New Trends In Technology Preferences
New York – December 5, 2017. In the largest worldwide survey of real estate, energy and facility directors, independent research firm Verdantix discovered that on average real estate, energy and facilities budgets will increase by an average of just 2.5% in 2018. But the survey reveals important variations among the different areas of real estate, energy and facilities where budgets will be allocated in 2018. For example, software investments for buildings will surge as 33% of the firms surveyed plan to increase their software budgets in 2018. For facilities management it is a more mixed picture with just 19% of firms indicating they will increase spend in this area. Budgets for other outsourced services such as asset monitoring will experience even less growth, with only 14% of firms intending to increase spend here in 2018. To produce the recently published report, “Global Real Estate, Energy & Facilities Survey 2017: Budgets, Priorities & Tech Preferences,” Verdantix interviewed over 300 real estate and facilities management budget holders from firms with revenues ranging from at least $250 million to over $60 billion.
“35% of real estate and facilities management leaders will be increasing spend on technologies such as sensors and LED lighting in 2018. This bodes well for vendors offering clients actionable insight from the vast pool of data Internet of Things (IoT) technologies are generating as their penetration grows worldwide” commented Verdantix Analyst, Ibrahim Yate.
Key findings of the report include:
• 7% of real estate and facilities management directors self-describe themselves as technology leaders and 44% regularly review new technology and solutions
• While 35% of real estate and facilities management directors will increase spend on building equipment, around 8% will really ramp up investment (by more than 15%)
• Budgets for real estate and facilities software investments will be growing in 33% of firms, with 9% of them growing at more than 15%
• Over the next two years, 11% of respondents are planning to purchase software to support fault detection and diagnostics, and 10% are planning to purchase software to support asset and maintenance management
• 30% of respondents are either trialing or evaluating the potential of Integrated Workplace Management Systems (IWMS) for their real estate and facilities portfolios.
• Between 17% and 27% of respondents are either trialing or evaluating innovative solutions such as IoT platforms, information beacons, assets with embedded intelligence and space utilization monitoring
• Other than tight budgets, a failure to communicate returns on investment from real estate technology deployment and internal issues preventing full adoption of digitized methods of data capture, are two key factors preventing greater investment in facilities optimization.
“Our annual global survey provides granular, authoritative data on the budgets, priorities and tech preferences of 302 real estate and facilities executives” commented Verdantix Managing Director, Rodolphe d’Arjuzon. “The highest priorities for 2018 are reducing utilities bills as well as improving FM contractor performance, operations data management, space management and wellbeing. By contrast there’s less enthusiasm for on-site generation and lease management – but with important geographic and sector variations.”
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Paige A. Rigas
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