Implementing Building Automation & Tokenization to Increase Valuations, Eliminate Inefficiencie
If owners of large real estate assets implemented smart building technology and put their assets on the blockchain, they would save 50% of annual energy costs while getting better visibility on their use and deferred maintenance of their assets and open up a new source of financing while unlocking the liquidity premium (averaging 15%). Meanwhile, investors (institutional and individual) could avoid the deadweight fund administrative costs (~ 15% for REITs or 2% annually and, 20% incentive fees, within private funds) while increasing their ability to better customize a portfolio and trade in and out of their positions.
Moreover, with the financial performance and the sensor data (i.e. smart building technology) loaded automatically onto the blockchain, current and potential investors would have access to data that typically surpasses that available for most publicly traded companies in terms of quality, quantity and timeliness. The one time cost for this 50% annual energy cost savings bytn with implementing smart building technology would run an average of $2.30 per 1000 square feet. The one time costs to put it on the blockchain and “tokenize” the asset, which would unlock the value and liquidity would average less than the cost of installing a new swimming pool.