The Institutional Real Estate Inc Sponsorship brochure, Connected-Investor Focused, We connect people, data and insights, sponsorship, events, IREI Products
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NAREIM DIALOGUES FALL 2016 7 This U.N. Global Compact study, reached a clear conclusion: "The glare of the spotlight influences [companies] to improve productivity, cut costs, secure trust with local stakeholders, and build customer loyalty,". Whether that glare comes by way of the media, watchdog groups or increasingly sophisticated consumer activists, it's not a welcome sight. Yet growth and innovation driven by the intelligent use of harvested data can turn it into a positive light every business can bask in. Eighty six percent of global CEOs believe "transformative action will be underpinned by a new approach to identifying common metrics that allow companies to measure, track and communicate impact on sustainable development goals." What's more, the report emphasizes that the same strategy that creates societal value drives shareholder value as well. To the point: Sustainability equals value, especially in commercial real estate. A data-driven approach to monitoring electricity and water usage, tracking sustainability performance or showing the cost savings improvements that will yield over time can achieve two things: • In the near term, it can positively impact NOI, as these numbers play a crucial role in building valuation during a sale. • An owner or investor, well versed in valuable, can spot inefficiencies or opportunities while in the acquisition process. And once that's achieved, so comes another tangible benefit: data equals value, too. That data will play a dominant part in future cost savings is beyond question at this point, especially if you take a look at industry momentum. The conclusions in the Accenture study are echoed in a 2015 report by GRESB. Here's what they shared: Technical building assessments to provide more detailed information on energy efficiency opportunities rose to 83 percent of GRESB participants, up from 61 percent the previous year. That's a jump of more than a third. "There is strong evidence," GRESB notes, "that thoughtfully designed and operated buildings can provide practical solutions to the most challenging issues, while creating value for shareholders." Those words alone should provide a springboard into a data-driven culture—and paramount reasons that compel us to gather the data our buildings generate. But if you collect energy data just to report it, for example are you missing the mark? If it's little to no risk to capture the data, and if you're already reporting, can you turn it up a notch? When GRESB and Accenture Strategy use the exact same words—"shareholder value"—it's not just about saving money, but making it as well. Yet it's also the question of spending money: If GRESB's 83 percent isn't 100 percent, no doubt it's due in part to the resistance involved when the return on investment for data-gathering technology seems to be a one-trick pony. Yes, energy efficiency initiatives can save building owners substantial sums of money. But that's far from the end of the line—in fact, quite the opposite. A compelling argument exists within a new report by EnerNOC and PwC, with a title alone that speaks volumes: Transformational Energy Strategy: From Cost Management to Value Creation." Goby ranks among the advisory council members that contributed to this report. "Energy is typically delegated down to facility-level managers, where it is disconnected from broader corporate strategy," says Tim Healy, Chairman and CEO of EnerNOC. "We're at the beginning of a new era where an effective energy strategy is essential to remaining competitive in the marketplace." Nor do you have to look far for examples of how some companies have turned data mining into gold mining. Over the last three years, the stock of Amazon.com (NASDAQ: AMZN) has soared 175 percent, a performance built in large part on data analytics. EKN Research reports that 80 percent of e-commerce giants say that they lag behind Amazon in analytics maturity. If our planet's ability to digitally share, study and collect valuable information went from zero to Internet in two decades, then what will 2030 look like? To catch an informed glimpse, Accenture Strategy surveyed more than 1,000 CEOs in "Agenda 2030: A Window of Opportunity." Thoughtfully designed and operated buildings can provide practical solutions to the most challenging issues, while creating value for shareholders.