The BOMA Conference is a cornerstone event for commercial real estate (CRE) professionals, offering an invaluable platform for discussing the industry’s most pressing issues. BOMA 2024 focused on a myriad of topics—from the impact of healthy buildings on tenant satisfaction to the transformative power of artificial intelligence in building operations. Here, we’ll delve into three key takeaways from the sessions and highlight some noteworthy insights.
Takeaway 1: The growing impact of healthy buildings
One of the most riveting discussions at BOMA 2024 was the session, “Seeing Results: Implementing and Measuring the Impact of Healthy Buildings.”
During this session, Deborah Teng, Director of ESG at PGIM Real Estate, highlighted how amenities are transforming tenant experience and driving portfolio success.
“Health and wellness are important in net zero initiatives and do drive tenant occupancy,” Teng said. She also mentioned that courtyards are now being designed as live-in spaces, quiet rooms are in demand, and tenant engagement activities like large fundraisers and philanthropic events are becoming common.
Karen Marhous, Senior Vice President and Head of ESG at Clarion Partners, emphasized the significance of Indoor Air Quality (IAQ) standards and other health-driven features. “There is a big push to implement IAQ standards,” she said, stressing that the industry is transitioning towards holistic health and wellness certifications. Additionally, Marhous highlighted how tenant demands are increasingly shaping the market, especially during the leasing process, registering a notable trend in the rise of fitness centers and outdoor green spaces.
Zachary Flora, VP of Market Growth at the Center for Active Design, underscored the measurable benefits of these healthy building initiatives. Flora said, “Tenant satisfaction and retention are huge motivating factors in driving demand, especially in office and industrial.” He pointed out that landscaping elements such as trees not only enhance aesthetic appeal but also have practical benefits like reducing heating and cooling costs, providing a direct link to ROI.
Takeaway 2: Artificial intelligence is a game-changer
Artificial Intelligence (AI) was a major theme in the session, “From OT to AI: The Artificial Intelligence Frontier.” This session demonstrated AI’s role in building operations and offered a roadmap for leveraging AI to enhance efficiencies and predictive capabilities.
Anthony DeMattos, CEO of Setty, stressed the importance of data integration for AI applications. He said, “For us, it’s about asset info collection; then dynamic data for diagnoses.” DeMattos emphasized that bringing together disparate data into a unified system is the first critical step towards meaningful AI deployment.
Drew DePriest, Director of Real Estate Operations Technology at McKesson, talked about the long-term planning necessary for successful AI implementation. He said, “We have a 5-year plan to be AI ready.” He outlined that McKesson is focusing on both low-value, immediate use cases like decarbonization, and higher-complexity projects involving predictive maintenance for critical systems.
Andrew Rogers, Co-Founder of ACE IoT Solutions, shared insights into the foundational elements needed for effective AI utilization. Rogers explained, “Our focus is in building out the base infrastructure layer for the data; to capture the relationships between the data.” He emphasized that before diving into advanced analytics, organizations need to ensure their digital readiness by constructing a robust data infrastructure.
Takeaway 3: Resilience in the face of climate risks
The increasing frequency and intensity of climate-related disasters were the focal points of the session “Developing Resilient Buildings with Risk Management Strategies.”
CRE professionals discussed the necessity of making buildings resilient to these growing threats, emphasizing both immediate and long-term benefits. Katie Wholey, Associate and Boston Resilience Leader at Arup, laid out how comprehensive risk assessments should consider both physical risks (flooding, wildfires) and operational vulnerabilities to devise effective resilience strategies.
Kelly Vickers, Vice President of ESG at Mill Creek Residential Trust, elaborated on practical applications and the synergy between different risk management strategies. She said, “Investment analysis includes physical reports, FEMA flood zones, and environmental/geographical reports.” Vickers explained how Mill Creek utilizes various tools, including Moody’s climate risk assessments, to make informed investment decisions and to develop targeted resilience measures.
Kim Pexton, VP of Sustainability at JBG Smith, discussed the tangible benefits of developing resilient buildings. She noted innovations like coolseal coatings for surfaces and nanotint window films that have already shown promising results in reducing energy consumption and mitigating heat stress.
Conclusion
BOMA 2024 provided a wealth of knowledge and critical insights into the future of commercial real estate. The emphasis on healthy buildings, the transformative potential of AI, and the urgent need for resilient building strategies were among the highlights. These sessions underscored the importance of adapting to tenant demands, leveraging technology, and building resilience against climate risks.
For those looking to dive deeper into these topics, consider reaching out to a Building Engines expert. Their specialized knowledge can help guide you through implementing these innovative strategies in your own portfolio.
