Five Trends Making Smart Building Technology a No-Brainer for Real Estate Investors

  Five Trends Making Smart Building Technology a No-Brainer for Real Estate
                                  Investors

Jones Lang LaSalle's Op-Ex Advantage report makes the investment case for
automated building systems

PR Newswire

CHICAGO, Nov. 4, 2013

CHICAGO, Nov. 4, 2013 /PRNewswire/ --Facing pressure to manage costs, risks
and energy consumption, commercial building owners and investors are exploring
how smart building technologies can help a company's triple bottom line
(people, planet, profits). Five key trends are making smart buildings a
"no-brainer" for commercial property owners and investors, according to Jones
Lang LaSalle's latest report, The Changing Face of Smart Buildings: The Op-Ex
Advantage.

"Commercial and public property owners are looking to smart building
technology to boost operational efficiency, achieve energy savings, improve
capital planning and reduce their carbon footprints," said Dan Probst,
Chairman of Energy and Sustainability Services at Jones Lang LaSalle. "These
advantages, combined with tenant preferences for smart building features,
provide a competitive edge for owners and investors."

Five reasons for smart building investment

The report, which details the landscape for smart building technology,
identifies five major trends:

1). Rapid return on investment (ROI). Smart building technology investments
typically pay for themselves within one or two years by delivering energy
savings and other operational efficiencies. Also driving the fast payback is
the low cost of automated building technology, which has fallen as adaptation
has increased. For example, intelligent lighting components that cost $120
four years ago today sell for just $50. Procter& Gamble's building management
pilot program, for example, generated a positive return on investment in just
three months.

2). Operating-expense (op-ex) advantage. Relative to other energy-related
building upgrades, smart building technology requires little upfront capital
expenditure (cap-ex), while delivering significantly reduced operational
expenditures (op-ex). Using automated systems, smart buildings generally cost
less to operate than buildings operating solely on legacy systems, therefore
offering a long-term op-ex advantage. By combining smart building systems and
data analytics with facilities management, a smart building management system
can detect and resolve building issues before equipment failures and capital
expenditures ensue. Additionally, operational and energy savings begin shortly
after the smart building management system is implemented.

3). Marketing mileage. As reported in JLL's October 2012Global Sustainability
Perspective, numerous studies and surveys have demonstrated that tenants and
their advisors increasingly expect smart building features such as zoned HVAC,
sophisticated equipment maintenance alert systems, advanced security systems
and "green" buildings. Like a new lobby or elevator bank, an improvement in
sustainability makes an office building more desirable to tenants. These
benefits can justify collecting higher rent, and can increase competitive
advantage and occupancy rates. And when the building is sold, sustainable
investments can be recouped in an increased sales price. In fact, a 2011 study
by Eichholtz, Kok and Quigley indicated the premium for LEED certified or
ENERGY STAR labeled buildings is approximately 13 percent.

4). Energy savings. Smart building technology can generate energy savings of
eight to 15 percent annually almost immediately after deployment, with the
potential for incremental improvements over time. A 2012 report*, estimates
that $289 billion in building efficiency investment would produce savings in
excess of $1 trillion in the U.S. alone, with every dollar invested in energy
efficiency producing three dollars of operational savings.

5). Improved Corporate Social Responsibility (CSR) profile. Redirecting energy
spend to building efficiency has allowed some corporate decision-makers to
gain the reputational advantages of doing the right thing by the environment
while also gaining significant performance and productivity improvements.
Another benefit is a smart building system's ability to measure and report
greenhouse gas emissions. Some owners feed building emissions data to multiple
benchmarking organizations, such as Greenprint and GRESB, as well as to Ceres
and similar third-party reporting organizations, and smart systems can roll up
the information from across a portfolio.

* By the Rockefeller Foundation and Deutsche Bank Group's DB Climate Change
Advisors: 'United States Building Energy Efficiency Retrofits: Marketing and
Financing Models'

About the report

Jones Lang LaSalle's report, The Changing Face of Smart Buildings: The Op-Ex
Advantage, provides a comprehensive, state-of-the-market view on smart
buildings, providing the first multi-dimensional business case for smart
technology investment. The report covers multiple issues critical to corporate
boards and executive management such as investment payback and ROI,
environmental sustainability, operational reliability and operational risk
mitigation. The full report can be downloaded here: http://bit.ly/HvhSx6

About IntelliCommand

JLL's IntelliCommand^TM smart building technology helps real estate owners and
investors take advantage of this opportunity by providing 24/7 real-time
remote facility monitoring and control across multiple locations, combined
with the JLL integrated facilities management operations. The system includes
continuous building commissioning, automatic work order generation, seamless
smart grid integration and compatibility with all major brands of automated
building system sensors.

About Jones Lang LaSalle

Jones Lang LaSalle (NYSE:JLL) is a professional services and investment
management firm offering specialized real estate services to clients seeking
increased value by owning, occupying and investing in real estate. With annual
revenue of $3.9 billion, Jones Lang LaSalle operates in 70 countries from more
than 1,000 locations worldwide. On behalf of its clients, the firm provides
management and real estate outsourcing services to a property portfolio of 2.6
billion square feet and completed $63 billion in sales, acquisitions and
finance transactions in 2012. Its investment management business, LaSalle
Investment Management, has $46.7 billion of real estate assets under
management. For further information, visit www.jll.com.

SOURCE Jones Lang LaSalle

Website: http://www.jll.com
Contact: Joanne Bestall, +1 312 228 2344, Joanne.Bestall@am.jll.com