How Will Smart Cities Impact Commercial Real Estate?
When thinking about smart cities, the word “efficiency” comes to mind. Smart cities aim to enhance efficiency by implementing the latest technologies within metro areas. The proliferation of technology may feel overwhelming at first glance, but bustling cities benefit greatly from energy savings, faster services, instant communication, improved mobility, and innovative infrastructures— all of which are cornerstones in smart cities.
The Rise of Database Design In Smart Cities
In recent years, city officials began evaluating available data regarding statistics for household income, burglaries, traffic, fires, illness, and parking citations. This normal data helps the ongoing effort to leverage vital information to improve the community and urban life. Now many smart cities use big data insights to revolutionize communities and transform the way cities operate in a more productive manner.
So where did smart cities originate? More importantly, what exactly helped enable the rise of smart cities? Cloud computing has considerably decreased city data storage costs. Furthermore, new developments in machine learning allow city officials to analyze the data and synthesize their findings into better procedures and operations. Using the Internet to sensor and help track a vast array of information such as traffic, energy use, and air pollution further aides to smart city function. This also includes mobile devices and smartphone applications, which enables a communication network to facilitate among city officials.
How Big Data Can Increase Safety In Cities Nationwide
Smart city designs work to protect citizens by anticipating problems before they arise! For example, the New Orleans Fire Department used big data to improve their smoke detector distribution efforts. With help from big data, the Fire Department successfully identified homes in the city that were most at risk for fire fatalities.
By working in conjunction with the city’s Office of Performance and Accountability, the two departments used Census Bureau surveys to identify city blocks most likely to contain homes without smoke detectors and those with young children or the elderly – as these groups pose the greatest risk for fire fatalities. By combining other city data, the departments identified neighborhoods with a history of house fires. With this quantitative data, officials mapped areas where fire deaths were most likely to occur, thereby allowing Fire Department targeted its smoke-detector distribution to those specific areas.
Using Sensors In The Community To Improve Efficiency and Health
New Orleans wasn’t the only city that saw success with smart city design. As part of the smart-city initiative, Kansas City installed computer-equipped sensors on streetlights along a 2.2-mile light-rail line, which gather information about traffic and street parking along the corridor. This information is shared publicly to show residents areas with slow-moving traffic, open parking spots, and an hourly traffic count.
Experts predict that sensory technology could eventually provide insights to foot traffic, thereby assisting real estate developers to determine the most popular sites to develop new multifamily buildings. Even better, detecting motion saves energy by dimming streetlights or automatically brightening areas for cars or pedestrians. Bob Bennett, Kansas City’s chief innovation officer explained that the goal is to use data “to improve the efficiency of service and ascertain what services we ought to be providing.”
But residents can also help to improve their own neighborhood, as seen in Louisville, KY through the implementation of over 1,000 sensor equipped inhalers given to citizens with asthma to help map where poor air quality throughout the city. The sensors used GPS technology to collect time and location data with each puff of the inhaler, showing clusters of inhaler use and linking it with air pollution. The data indicated areas of poor air quality, allowing Louisville officials to work toward improving air quality.
How Smart Cities Impact CRE
Smart-city initiatives create efficiency for citywide planning, thereby lowering operating costs beneficial to real estate developers. In Laymen’s terms, developers can purchase the property for much less. In addition, portions of city revenue can help fund other projects for commercial real estate developments. Any additional funding in the city yields good news for developers relying on area amenities to market their properties to prospective buyers.
Additionally, in-depth building and occupancy data can foster real estate developer decision making and increases transparency in real estate deals. Stakeholders can better understand the property and its residents, as well as identify value-adding opportunities. For example, data detailing foot traffic to different areas can help developers decide on locations to build based on heavy foot traffic areas.
Smart cities tend to attract technology companies to aid in development. Likewise, expanding business districts and city centers can help expand the job market and attract professionals, thus increasing the housing demand. Smart cities translate to higher paying jobs, easy access to public transportation, energy-efficient buildings, and modern services, which profoundly increase resident’s quality of life and facilitates a stream of business capital from real estate investors.
Next Steps To A Smarter City?
Are you looking to make a commercial real estate investment in an upcoming smart city? Or perhaps you wish to gain insight on how investing in smart city capital can benefit your business? Contact the experienced lenders at a Hunt Mortgage Group near you to help navigate the exciting smart cities landscape while discovering how they can positively impact your commercial real estate investment.