Transform Commercial

Real Estate Through

Digitalization
Siemens Xcelerator can unlock sustainability, efficiency, attractiveness,
and profit for building portfolios to overcome today’s challenges and
future-proof for tomorrow.
siemens.com/commercial-buildings
Index
The commercial real estate (CRE) Accelerating Digital Transformation –
landscape3 Easier, Faster, and at Scale24
Reduce Operational Costs5 Get Started on Your Digital
Decarbonize Toward Net Zero8 Transformation Journey25

Mitigate Risks to Ensure Business Get Started on Your Digital

Continuity 11 Transformation Journey25

Increase Revenue14
Prioritize Occupant Well-being16
Enhance Sustainability and ESG
Performance18
Foster Tenant Retention and Attract
New Tenants20
Maximizing Success Takes an Integrated,
Holistic Approach22
A partner for the life of a building23

2
 Decarbonization Occupancy rate

People wellbeing
High interest rates
Circularity
IoT Net zero
Sustainability Economic uncertainty

Big Data
Cost pressure Data analytics
New work
Labor shortage Compliance
ESG
Stranded assets Climate change
Cybersecurity
Energy & resource shortage

The commercial real estate (CRE) landscape

is evolving. Unprecedented events, climate
change, and a turbulent market landscape
are reshaping what investors, owners,
tenants, and public authorities expect from
buildings, creating challenges across all
areas — from the C-suite to facility
operators.

3
The following strategic objectives are imperative
for CRE companies to ensure that their building
portfolios maintain value, ensure financial
success, and align with the dynamic global
landscape:

Reduce operational Decarbonize Mitigate risks to Increase

costs towards net zero ensure business revenue
continuity

Prioritize occupant Enhance sustainability Foster tenant

well-being and ESG performance retention and
attract new tenants

Digitalization is the key to achieving these strategic Those that fail to transform are at risk of economic
objectives. It brings together the physical and digital aspects devaluation or obsolescence of portfolios. Still, a digital
of a building through smart, connected devices, systems, and transformation project is a complex journey that can only
platforms that collect and analyze information in real time. meet expectations and deliver a positive return on
investment (ROI) with the right approach.
This information allows for making proactive, data-driven
decisions that transform buildings' performance and In the following sections, you will learn why strategic
response to sustainability initiatives, occupant behavior, and objectives are imperative in the current CRE landscape and
business priorities. CRE companies that embrace and how digitalization can help achieve them. Through engaging
undertake digitalization can deliver flexible, sustainable, and use cases, you will also get a glimpse into the experiences of
valuable building portfolios that attract investors and premier companies that have successfully achieved strategic
tenants, ultimately outpacing the competition. objectives through digitalization. You will also discover how
to maximize the success of digital transformation projects.

4
Reduce Operational Costs
Economic inflation and global events are creating more The result is substantially lower maintenance costs,
severe cost pressures and tighter budgets than ever before. sidestepping additional fees for urgent responses, and
Energy prices are highly volatile in today’s world due to facilitating planned, continuous modernization.
supply and demand unpredictability, extreme weather
events, and a growing perception of energy risk, driving Optimized technical asset performance:
demand for energy resilience.1 Poorly maintained building system equipment uses 30% to

Commercial property insurance premiums increased by more 60% more energy as performance degrades.4 Degradation of

than 20% in the first quarter of 2023 for the first time in more building system equipment can also lead to unplanned,

than two decades.2 Current labor shortages also challenge costly downtime. Digital solutions that monitor building

building operations to meet facility demands with fewer system assets help improve maintenance and maximize the

resources. performance, energy efficiency, and reliability of assets while

preventing unexpected downtime.
With approximately 80% of total building life cycle costs
attributed to operations and maintenance — including Reduced energy consumption:
energy, which accounts for 30% — there is significant
Integrating IoT sensors, analytics, and automated building
potential to reduce operating costs by enhancing efficiency
systems can save an estimated 29% of energy consumption,
and reducing energy consumption.3
with IoT-enabled smart lighting alone reducing lighting-
Digitalization is the key. Through smart IoT solutions and related energy costs by up to 80%.5,6
platforms that monitor, collect, and analyze building data,
For example, building operations can optimize lighting and
digitalization centralizes information and creates
HVAC systems by monitoring real-time information about
transparency about the amount, origin, and cost of
occupancy, the amount of daylight, and other internal and
consumed resources.
external factors. This information can also enable shades to
Understanding these elements allows building operations to automatically open or close and lighting and temperature to
make better operational and budgeting decisions. While adjust accordingly.
investing in smart infrastructure to reduce costs may seem
Smart solutions for monitoring energy loads can identify
counterintuitive at first, it can provide a quick return on
high-usage areas for building operations to implement
investment via the following outcomes:
countermeasures. External data such as weather forecasts,
peak demand, and time-of-day utility prices can also be
Efficient and predictable maintenance:
leveraged to optimize energy load distribution and shed
Digital solutions enable actionable insights into asset non-essential loads for additional energy savings.
performance and remote monitoring capabilities,
empowering building operations to swiftly address issues
from any location. It also facilitates predictive maintenance
that helps avert system failures and effectively prepare for
asset end-of-life scenarios.

5
Space optimization: Strategic planning:
Digital solutions provide detailed insights for optimizing Real-time building data from a wide array of digital sensors
space usage throughout a commercial property — from combined with 3D models that represent the physical
offices and conference rooms to parking garages, cafeterias, construct of a building enable innovative digital twin
and storage spaces. Building operations can leverage technology. Digital twin platforms leverage data from
information such as occupancy levels, reservations, traffic sensors, devices, and other sources to provide a virtual
patterns, and costs per area or occupant to allocate space representation of a physical building or multiple
more efficiently, repurpose underutilized spaces, and interconnected buildings and all associated systems, devices,
optimize resources. and sensors.

New revenue can be obtained by identifying unused spaces Digital twins behave like actual assets, responding to
(e.g., office, storage, and parking) to lease to external operational, environmental, and occupancy conditions to
parties. CRE companies can leverage space utilization, trends, allow CRE companies and building operators to monitor and
and occupant preferences to guide future portfolio decisions, analyze building performance in real time. Digital twins can
right-size spaces, and effectively manage carbon footprints. also simulate a wide range of “what if” scenarios for making
predictions and identifying the impact of various digital and
Operational efficiency: physical assets, usage scenarios, and other variables
Through digital applications, building operations can Stakeholders can leverage these modeling capabilities to
automate tasks and workflows, control all building systems make strategic decisions and investments that optimize
from one central platform, and streamline communication efficiency, reduce costs, and improve overall asset value,
and service requests, eliminating traditional, time-consuming ultimately revolutionizing the design and operations of the
manual processes to improve staff productivity. built environment. For example, digital twins can simulate
Digital solutions such as real-time location services help track airflow through an area to identify the impact of stationary
and manage people and assets, while solutions like mobile and dynamic objects like walls, furniture, and people on air
access control simplify user provisioning and can eliminate exchange rates and temperature.
the time-consuming task of managing traditional ID cards.
Building operations can also leverage digital information to
improve resource allocation and budgeting.

6
Case in point:
Melbourne Cricket Ground (MCG)
Australia’s iconic home for football, cricket,
and other major sporting events, contracted
a seven-year energy performance initiative
that will save more than $3.2 million USD in
energy costs and reduce greenhouse gas
emissions by more than 50,000 tonnes -
equivalent to taking around 10,000 cars off
the road.

The savings were achieved via technology and digital

services from Siemens Xcelerator portfolio, which included a
new chilled water system using a patented Demand Flow
optimization strategy, monitoring and optimization of
heating and ventilation systems, and digital technologies
such as low-energy lighting, a new building management
system, modernized room control systems, and management
of peak electricity usage.

120%
MCG’s investment in digital
technology ultimately saved
enough electricity to power
the light towers for nearly six
years, achieving a 120%
return of guaranteed
financial value.

Visit website for more details

7
Decarbonize Toward Net Zero
With the built environment accounting for nearly 40% of While initial green building initiatives focused on sustainable
annual global carbon emissions, including operational building materials and construction, digitalization offers
emissions alone accounting for 28%, CRE has become a bigger and quicker financial returns by delivering the
critical target for tackling climate change.7 Stricter legislation following outcomes throughout the whole building portfolio
emerging across the globe requires commercial buildings to life cycle:
reduce carbon emissions and energy consumption.
Strategy and decarbonization roadmap:
For example, New York City’s Local Law 97, introduced in Through a holistic, birds-eye view of building emissions,
2019, establishes strict emission limits for commercial comprehensive analysis, and expert advice on market best
buildings over 25,000 square feet, requiring a 40% reduction practices, building operations can identify implementation
in emissions by 2030 and an 80% reduction by 2050, with strategies and develop a structured, well-planned approach
buildings that exceed the requirements becoming subject to to achieving decarbonization targets. CRE companies can
annual fines or carbon-based tax.8 Meanwhile, the EU Energy create positive net present value (NPV) pathways using
Performance of Buildings Directive (EPBD) requires a portfolio-level analytics to optimize technology and
minimum energy performance rating for commercial infrastructure investment in renewable energy, new services,
buildings by 2030 and climate neutrality by 2050.9 CRE and other decarbonization efforts.
companies must decarbonize their buildings toward net zero
to comply with new regulations and initiatives. Ensuring Reduced energy consumption:
compliance also requires quantifying, tracking, and reporting
Optimized and widely deployed digital solutions provide
on carbon footprint.
insights for achieving operational efficiencies and reducing
Decarbonization is no longer just a marketing differentiator. energy consumption that can reduce CO2 emissions by 15% to
It has become a core aspect of CRE business practices for 20%.11 Digital solutions also provide the data needed for CRE
de-risking assets and portfolios and increasing business companies to track and report on the energy consumption of
performance. Unsustainable buildings are becoming their assets and portfolios, enabling benchmarking by
increasingly difficult to finance, and failing to decarbonize comparing progress over time and against similar assets.
can bring additional financial implications, including
emissions penalties, climate-related write-downs, and asset
devaluation. In contrast, sustainable buildings yield between
a 10% and 21% increase in market value.10

8
Green energy opportunities: Energy procurement:
CRE assets can achieve up to a 40% reduction of CO2 Digitalization enables smart grid technology and net
emissions with integrated on-site, renewable microgrids.12 metering to accommodate demand-side energy
Integrated microgrids with battery energy storage systems management, allowing building operations to actively
and digital platforms that control operations based on control, analyze, and manage loads for reduced energy
demand and generation enable grid independence and consumption and carbon emissions. These technologies also
improve resiliency. These systems can store energy during provide the data needed to predict energy usage and enable
non-peak hours and ensure ongoing operations during informed energy-buying strategies that can help further
outage events while reducing direct and indirect emissions reduce energy consumption in line with Scope 2 emission
(i.e., Scope 1 and 2 emissions). Integrated microgrids can also reduction targets.
distribute excess energy back into the grid for financial
incentives and improved grid efficiency.

Fleet and electric mobility:

Electric mobility is on the rise. While petrol and diesel
vehicles accounted for two-thirds of fleets in 2022, fleet
managers expect electric and hybrid vehicles to account for
56% of fleets by 2024, with more than 75% of fleet managers
expecting to have fully electric fleets by 2030.13 Transitioning
to sustainable fleets using electric vehicles can reduce carbon
emissions by more than 15 tonnes per vehicle per year.14
Commercial buildings need to be prepared with on-site EV
charging infrastructure to enable this transition. Supported
by grid edge technology, digital solutions can help promote
reliable electromobility growth by leveraging the extensive
capabilities of automation and monitoring systems. For
example, digital self-servicing portals can supervise charging
and facilitate reporting, billing, and driver authentication for
building occupants and visitors.

9
Case in point:
FUNKE
One of Germany’s largest publishing
companies positions itself to be energy-
efficient and future-proof. FUNKE
decided to reflect this standing at its new
37,000-square-meter headquarters, home
to over 1,000 employees.

FUNKE initially deployed advanced building control

technology on a broad scale with thousands of data sources,
but a lack of appropriate digital tools created a high level of
complexity and a flood of unused data. They partnered with
Siemens to put the data into context and enable real-time
monitoring of energy consumption to detect and resolve
areas of high consumption. This also helped FUNKE make
strategic decisions to achieve the goal of making its
properties climate-neutral by 2035.

12,000
"This is such a large building - we have about
12,000 data points. Siemens helps us
understand the data and put it into context so
that we can draw conclusions for building
operation. This allows us to operate the building
in a way that is appropriate for its use as well as
efficient and energy-saving."
Heiko Hansler, Head of Real Estate, FUNKE

Visit website for more details

10
Mitigate Risks
As buildings deploy more connected devices, they become This enables grid independence and continuous operation
increasingly vulnerable to cyberattacks and ransomware that when utility power is down due to weather, equipment
can halt operations, require significant remediation costs, failures, high energy demand, and other events.
and even impact life safety. Cybersecurity attacks increased
15

by 38% in 2022 compared to 202116, and the first two months Business continuity:
of 2023 saw a 41% increase in attacks targeting IoT devices Digital solutions can help avoid business interruptions,
compared to 2022.17 increase uptime, and protect core services. For example, data

Economic trends such as unemployment, rising inflation and analytics help identify patterns and potential direct and

interest rates, and reduced demand for commercial space indirect threats, allowing building operations to proactively

also pose risks such as delayed rent collections, higher implement strategies that minimize or eliminate threats.

vacancy rates, higher mortgage payments and refinancing Digital services also support incident management to ensure

costs, and expanding construction costs and timelines. that the right measures are deployed and prioritized based on

Property-level risks are also rising in conjunction with the likelihood, frequency, and severity of threats.

economic unrest. Global companies lost a combined $1

trillion in revenue in 2022 due to internal and external Physical safety and security:

physical security incidents.18 Smart security and life safety solutions provide reliable,
preventive safety measures to protect people and assets from
These threats can include theft, vandalism, unauthorized
incidents. For example, digitally monitoring specific areas via
access, and even terrorist attacks. Depending on geographic
smart access control, video analytics, and sensors can
location, climate change also poses risks due to increasingly
identify unauthorized occupants and detect intrusions, theft,
extreme weather patterns that can damage property, disrupt
accidents, and other hazards without user input.
businesses, and increase insurance costs.19 It can be
Digitalization enables real-time, remote monitoring for
extremely difficult for a business to recover from a severe
immediate incident response and improved operational
incident.
efficiency. It also supports the integration of security systems
To preserve reputation and prevent potential loss of asset with other building management systems and networks to
value and liability, CRE companies must manage economic significantly improve safety and security. For example, HVAC
risks through wider business strategies and due diligence, systems can automatically shut down in response to smoke
such as identifying lower-risk geographic locations, markets, detection, or a gunshot detection can automatically trigger
tenants, and lease agreements. At the same time, building emergency response, lockdowns, and mobile alerts to
operations is responsible for addressing property-level risks occupants.
by protecting assets, occupants, and surrounding areas.

Digitalization reduces risk and enables business continuity by

delivering the following outcomes:

Power resilience:
'Global companies lost a
Ongoing, controlled monitoring of power distribution assets combined $1 trillion in
and the entire energy supply chain — from generation and
revenue in 2022 due to
transmission to distribution — can automatically detect faults
and ensure reliable power supply across buildings to protect internal and external physical
core services. Solutions such as demand-side energy
management and net metering can help improve the
security incidents'
reliability and resiliency of the grid to reduce power outages.
On-site renewable microgrids generate and store electricity
to significantly improve power resilience.

11
Financial security: Proof of compliance:
Digital solutions help future-proof buildings to avoid physical, Digitalization can automatically collect and combine in-depth
functional, and economic devaluation or obsolescence that safety and security data from multiple building sites into one
can cause monetary loss. transparent data lake via digital platforms and dashboards to
optimize safety and security activities and ensure effective
For example, by continuously modernizing buildings, assets,
regulatory compliance and audit management.
and systems to the newest technologies and services to
maintain high ratings, building operations can stay ahead of For example, Siemens Fire eLogbook service portal
increasing costs and staff shortages, and CRE companies can automatically captures and aggregates real-time information
avoid stranded assets. about all system events and other activities of fire safety
panels, which can be accessed remotely by authorized users
Digital security solutions also lower costs by helping to
and shared with authorities and other stakeholders. These
reduce liability claims and prevent damage, theft, and other
digital portals provide proof that systems are adequately
costly acts. Digital security systems may also qualify for
maintained in an emergency and securely store accurate
reduced insurance premiums.
time-stamped event information in compliance with local
regulations, reducing risk and helping building operations
prepare for safety audits and inspections.

"The Siemens Fire eLogbook

service portal automatically
captures and aggregates
real-time information about
all system events and other
activities of fire safety panels"

12
Case in point:
Art Deco Hotel Montana
The historic four-star hotel offers an
incredible panoramic view of Switzerland’s
Lake Lucerne and receives around 25,000
guests annually. As an important cultural
center in Lucerne, Hotel Montana is
committed to protecting its guests.

The hotel operates around the clock and encompasses a staff

house, a hotel management school, and a renowned
restaurant with an open kitchen that demands special fire
protection. The hotel required a modern fire protection
solution to avoid false alarms that could disrupt its
continuous business operations.

In a staged installation that avoided disturbing business

operations and unnecessary costs, Hotel Montana deployed
250 state-of-the-art fire detectors from Siemens that use
advanced technology to deliver highly reliable detection
while preventing false alarms caused by deceptive
phenomena such as steam. The hotel also has 250
older-generation fire detectors. Thanks to Siemens’ backward
compatibility, all detectors are controllable via the hotel’s
staffed fire control panel, and older-generation detectors can
be replaced as needed for cost-saving modernizations.

"The safer we are, the more

open we can be."
johan Breedijk, Head Chef, Hotel Montana

Visit website for more details

13
Increase Revenue
Economic inflation with higher interest rates and debt levels Maximized existing revenue:
are causing property values to fall, while corporate Transparent data provides targeted measures for increasing
downsizing and the rise of hybrid working models and topline income from existing portfolios, assets, services, and
e-commerce are decreasing demand for tenant space and tenants. With data-driven space optimization, building
driving competition in the marketplace. In the first quarter of operations can use spaces as efficiently as possible and
2023, global commercial real estate investment volume fell identify unused spaces that can be repurposed and leased to
by 55% year-over-year20, and vacancy rates remain high, with external parties.
U.S. vacancy rates climbing to more than 18%.21

Digitalization improves cash flow and net operating income New revenue streams:

(NOI) for CRE portfolios to stay competitive and endure the The right future-proofed digital infrastructure has the
current economic downturn by providing the following flexibility to support innovative digital services and amenities
outcomes: that can increase rent and generate new revenue - everything
from high-speed internet and electric vehicle charging
Increased property value and marketability: stations to digital advertising. Digital solutions like power

Digitalization enables smart, connected buildings with metering and on-site microgrids can generate income by

modern infrastructure that are attractive to premium tenants allowing CRE companies to sell utilities to tenants based on

who are willing to pay more for advanced services and better their use. These solutions also allow building operations to

occupant experiences, sign longer leases, and are less likely manage peaks in energy consumption and feed surplus

to leave. According to the European Commission report on energy back into the grid to reduce energy costs.

Macroeconomic and Other Benefits of Energy Efficiency, a

smart, higher-performing building can add as much as 11.8%
in lease value and yield 5% to 35% higher sale value.22
A smart, higher-performing
building can add as much
as 11.8% in lease value and
yield 5% to 35% higher
sale value.

14
Case in point:
Sello Shopping Center
One of Finland’s most sustainable shopping
city centers welcomes around 21 million
visitors annually and includes 160 shops, a
concert hall, a library, a hotel, entertainment
attractions, and a residential block. As a
global pioneer in property intelligence and
digitalization, Sello emphasizes new
operation models, sustainability, and energy
efficiency to create shareholder value,
monetary benefits, and a better customer
experience.

Sello deployed cutting-edge digital solutions that enabled the

implementation of a virtual power plant that optimizes energy
consumption within the shopping center while reducing the
load on Finland’s main power grid in case of instabilities. The
virtual power plant consists of a microgrid based on a
750-kilowatt peak solar panel system and about two megawatts
in electricity storage capacity.

In cooperation with Finland’s transmission operator, Fingrid,

€350,000
Sello decreases its energy consumption or feeds energy into
the grid to help manage peaks in consumption. To save
additional energy and create an excellent shopping experience,
Sello also deployed smart LED lighting, HVAC, and indoor air
quality sensors. Thanks to its virtual power
An intelligent control system automatically manages these
operations using thousands of data points. The services are
plant, the mall benefits from
delivered on-site by a dedicated Siemens energy manager and €350,000 annual gains from
remotely through Siemens digital platforms. Since the
deployment, the mall has reduced energy consumption by 40% the flexibility market. It has
and 4,157 tonnes of CO2 emissions, equating to about €550,000 also reduced energy
in savings and a gain of €350,000.

Today, it is one of Europe's most sustainable and smartest

consumption by 40% and
centers, resulting in steadily increasing property and registers around €549,500 in
shareholder value and lower operating costs. Combined with
the sustainable brand image and healthy working environment
annual savings from the total
when leasing at Sello, the mall boasts an exceptional solution.
occupancy rate of more than 99%.

Visit website for more details

15
Prioritize Occupant Well-being
Building occupant expectations differ greatly from just a People health and well-being:
decade ago. Following work-from-home becoming the norm Digitalization actively contributes to the physical health and
during the COVID-19 pandemic, hybrid working models are mental well-being of building occupants by leveraging IoT
now a long-term trend. While fully remote working is on the devices to monitor and automatically adjust indoor air
decline, the adoption of hybrid working models is expected quality, lighting, temperature, and other environmental
to rise from 42% in 2021 to 81% by 2024.23 factors to create safe, comfortable, and healthy indoor

Demographic shifts have also changed expectations, with conditions.

today’s younger workers increasingly concerned with ESG

factors and demanding healthy environments, building Occupant experience:

amenities, and collaborative and engaging spaces.24 Sick Technologies like smart lighting, parking, access control, desk
building syndrome (SBS) has also received more attention in booking, wayfinding, and automatic lights and blinds create
recent years, with expert research linking health- or comfort- seamless, personalized user experiences and touchless hybrid
related issues caused by SBS to poor indoor air quality. 25 workplaces that minimize the spread of contagions and
Studies also show poor indoor air quality significantly impacts improve comfort and convenience. Through digital
an individual’s creative potential. 26 applications, building occupants can use their mobile devices
to access information about amenities and automate their
Today’s building occupants expect readily available,
environment to improve comfort and convenience. Digital
personalized technology at their fingertips and transparent
solutions that monitor and collect environmental data also
environmental information about their surroundings.
connect occupants to the building by providing them with
E-commerce has changed consumer expectations of in-store
transparent environmental information about their
retail experiences, and digital technology is now presumed
surroundings.
requisite by tenants, occupants, and visitors across all
commercial buildings.27 It’s no longer enough to offer four
People productivity:
walls.
By leveraging space usage and environmental data, building
To meet shifting expectations and new lifestyles and working operations can optimize functional spaces and indoor air
models, buildings must prioritize occupant well-being by quality to drive personal productivity through improved
providing safe, healthy, comfortable, and easy-to-use spaces cognition, reduced absenteeism, enhanced collaboration,
that offer engaging experiences and promote creativity, and better morale. Studies have shown cognitive test scores
collaboration, productivity, and an overall sense of to be 60% to 100% higher with the introduction of indoor
community. Digitalization makes this possible by delivering environmental quality controls.28 Occupants also exhibit
the following outcomes: higher sleep quality scores and 30% fewer medical symptoms
in green buildings.29

16
Case in point:
Arvato Financial Solutions
This European fintech company aimed to
create a more productive and efficient
working environment. They partnered with
Siemens to roll out a workplace intelligence
platform at 32 locations across 15 countries.

The platform and its app allow employees to plan their

working day at the office according to their specific needs
and support Arvato’s flexible working model by creating a
digital workplace environment. The app lets employees view
office schedules, find disinfection stations, or request
cleaning and maintenance.

It also provides transparency into available spatial capacities,

allowing employees to find and select the appropriate
workspace for their tasks. There is even an opt-in feature for
employees to share their location and status so colleagues
can find each other in the office and see their availability.

The platform also provides insight for Arvato to make

data-driven decisions regarding space and capacity
utilization. With digital solutions, Arvato is shaping the
flexible future of work and revolutionizing office working life
for its 5,000 employees across 63,000 square meters of office
space.

'With the Comfy platform

from Siemens, we will drive
the digital transformation
of our workplace
environment and enable
our employees to plan their
workday based on their
own preferences."
Jan Altersten, CEO of Arvato Financial Solutions

Visit website for more details

17
Enhance Sustainability and ESG
Performance
Sustainability and ESG performance have become critical Digital solutions that collect and aggregate transparent,
benchmarks in the CRE market. They are now a common high-quality, and insightful data deliver the following
framework for assessing portfolios and defining corporate outcomes:
status, with tenants increasingly selecting building leases
Assessments and roadmaps:
based on ESG criteria. More than two-thirds of investment
management firms have adopted ESG standards in their Digitalization provides key data points needed to assess

investment criteria, emphasizing environmental factors and sustainability and ESG performance and define roadmaps for

redirecting financial flows to promote sustainable CRE companies to identify and deploy technologies and

development.30 optimize infrastructure and data flow to improve ratings.

As a critical part of ESG initiatives and new regulations Proof of performance:

governing environmental claims, such as the European
Through digitalization, cloud-based platforms put aggregated
Commission’s proposed Green Claims Directive, businesses
data on energy, emissions, DEI factors, and other KPIs into
worldwide must ensure transparency by committing to
context via dashboards and tailored reports. Data can be
science-based targets via various reputable global reporting
collected across entire asset portfolios, supply chains, and
standards that independently verify clearly defined,
customers to prove corporate claims on ESG achievements
standardized, and comparable key performance indicators
and comply with global reporting frameworks and other
(KPIs).31 The Science Based Target initiative (SBTi), which
regulations, making it easy for stakeholders to assess
verifies KPIs in alignment with the Paris Agreement to limit
portfolios. Proof of sustainability and ESG performance
global temperature increases to below 1.5°C, reported an 87%
improves corporate reputation, builds trust with tenants and
increase in companies setting science-based targets in 2022,
other stakeholders, increases tenant retention, and improves
representing over a third of the global economy.32
risk management.
For example, Siemens has committed to owning or leasing
only net-zero buildings and sourcing 100% renewable power Progress improvement:
by 2030. To meet KPIs, identify areas of improvement and Digitalization allows building operations to monitor and
risks, enable data-driven decisions, comply with regulations, visualize ongoing energy usage, safety and security factors,
and build trust among key stakeholders, CRE companies and occupant comfort, and other KPIs. This information can be
building operations are tasked with tracking and reporting on used to analyze trends and patterns, track progress, and
ESG performance. This can be a complex task that requires make data-driven decisions for continuous improvement and
compiling diversity, equity, and inclusion (DEI) factors and moving targets. It can also help CRE companies achieve
environmental, governance, and financial data, such as positive ESG ratings, providing better access to capital with
energy usage, emissions, board composition, corporate better financial terms and conditions.
policies, and financial stability. 33

18
Case in point:
Siemens Campus Erlangen
Under the direction of Siemens Real Estate,
the campus opened in December 2022 as
an example of prioritizing ESG. The project
used a holistic digitization approach to
create a modern, sustainable, and vibrant
campus with state-of-the-art infrastructure,
extensive green spaces, collaborative work
environments, and numerous services.

It is a highly inclusive campus with barrier-free access, a

tactile guidance system, handrail signs, acoustic fire
detectors, sanitary facilities, parking spaces, and electric
vehicle charging options for people with disabilities. A digital
platform and app allow employees to access essential campus
services, book meeting rooms, and ensure comfortable
workspaces to suit their needs. The Siemens Erlangen
campus will be one of Siemens’ CO2-neutral locations
focusing on sustainable buildings, including on-site solar that
generates more than 400,000 kilowatt hours of electricity
annually, advanced building and energy systems, and actions
to promote and maintain biodiversity.

400,000
The Siemens Erlangen
campus generates more than
400,000 kilowatt hours of
electricity annually, advanced
building and energy systems,
and actions to promote and
maintain biodiversity.

Visit website for more details

19
Foster Tenant Retention and
Attract New Tenants
Higher vacancy rates due to economic inflation, higher Increase tenant satisfaction:
interest rates, corporate downsizing, and a shift in tenant Digitalization provides the foundation for implementing
and buyer preferences have created a highly competitive amenities, services, and flexible spaces that satisfy today’s
market. To attract and retain talent and satisfy their building occupants and visitors, enabling consistently lower
customers, tenants demand spaces that align with changing vacancy rates and greater tenant retention. By providing
workplace dynamics and the evolving expectation for digital resilient, secure digital infrastructure, CRE companies can
services among today’s workforce and consumers. support seamless business operations for their tenants while

In a recent survey, 92% of international building owners with building confidence in their services.

at least one million square feet of commercial space

recognize that employees want more from their buildings, Attract tenants with digitalization solutions:

and another 80% of those surveyed recognize the role that a Providing digital experiences and amenities attracts high-
digital experience plays in attracting tenants.34 CRE value tenants, giving CRE companies a competitive edge in
companies must also foster tenant retention in today’s today’s turbulent market landscape. Research shows that by
competitive market. Tenant turnover can result in significant 2025, properties that incorporate a diverse roster of
expenses, including lost rent, the cost to market to new amenities will experience 12% higher demand from tenants
tenants, brokerage and legal fees, the cost of preparing versus their commodity counterparts.36
spaces for new tenants, and other administrative costs.35
Sustainable buildings:
Digital solutions that improve sustainability and ESG
Digitalization supports decarbonized buildings with improved
performance and provide safe, healthy, comfortable, and
sustainability and ESG performance in line with tenant
engaging experiences for building occupants and visitors
demands and corporate ESG objectives. One industry report
deliver the following outcomes:
found that 63% of leading investors strongly agree that green
strategies can drive higher occupancy, rents, tenant
retention, and overall value.37

20
Case in point:
The Dubai Airport Freezone
This complex is home to thousands of
tenants, including Fortune 500 firms. It
provides customizable office space,
warehouses, and light industrial units —
and embodies the philosophy of Dubai’s
success: happiness. Siemens’ digital
solutions are vital in achieving that
philosophy, using 42,000 data points to
create a perfect business environment for
client satisfaction.

Occupants can individually control office temperature and

lighting with a mobile app. The public dashboard at the food
court displays real-time energy data to encourage occupants
and visitors to help reduce consumption. With 61 energy
monitoring units integrated into a digital cloud-based energy
and sustainability platform, Dubai Airport Freezone has
implemented several energy-saving initiatives to help Dubai
reach its energy goals. The building management system also
creates a comfortable environment that increases tenant
satisfaction and happiness. The digital solutions have
strengthened Dubai Airport Freezone’s reputation as an
attractive business hub that meets ambitious environmental
targets.

42,000
Siemens’ digital solutions are vital
in achieving that philosophy, using
42,000 data points to create a
perfect business environment for
client satisfaction.

Visit website for more details

21
Maximizing Success Takes an
Integrated, Holistic Approach
While the previous sections demonstrate how digitalization To help CRE companies worldwide maximize the success and
can help achieve today’s strategic CRE objectives, digital ROI of their digital transformation projects, Siemens takes an
transformation projects can fail to meet expectations and integrated, holistic approach that brings together physical
deliver ROI without the right approach — and the right and digital building aspects through optimized infrastructure,
partner. connected IoT technologies, integrated systems, and digital
platforms based on short- and long-term business objectives,
All digital transformation projects require technology,
potential future needs, the entire building life cycle, and the
analytical and operational capabilities, and digital expertise.
whole asset portfolio.
But projects applied in silos with disconnected approaches to
technology investments and a focus on upfront costs can be This approach is a game-changer for CRE companies to
highly complex and ineffective. overcome today’s challenges and ultimately put their
portfolios on the journey to long-term net-operating income
As a result of ineffective approaches, 42% of digital
and success. Siemens doesn’t just take this approach with
transformation projects don’t meet expectations and 21%
CRE customers — it’s the same approach taken with Siemens’
fail.38
own global real estate portfolio.

Leading by example: Learn about

Siemens' own corporate real estate
management

22
A partner for the life of a building
Siemens’ integrated, holistic approach involves working From there, we can identify current and future digital
closely with key stakeholders — from concept, design, and technologies across OT, IT, and IoT infrastructure and
financing through implementation, operations, monitoring, operations and ensure the right architectural design,
and maintenance. leveraging innovative building information modeling (BIM)
technology to tailor implementation to specific objectives
In the early planning phase of a digital transformation
and the physical spaces of the building. Siemens then
project, we help CRE companies assess their current state,
coordinates disciplines and partners for seamless
determine their most important short- and long-term
implementation throughout the entire construction phase.
strategic business objectives, and break down those
objectives by identifying potential outcomes and possible use Through consulting and financing solutions, Siemens can
cases. Only then can digitalization actively contribute to also help deliver smart digitalization at scale that allows CRE
business success, with true impact where needed. companies to easily adapt to new business models, digital
services, and technologies.
Once objectives are determined, Siemens collaborates with
key stakeholders to determine evaluation criteria and identify And it doesn’t stop there: Siemens’ technical and digital
data points needed to report on and meet targets. services and data analytics optimize ongoing operations,
maintenance, monitoring, and reporting for CRE companies
to maintain the sustainability, efficiency, and overall value of
their building portfolios for years to come.

Real estate solutions and services

A holistic solution provider to design, implement and finance digital innovation / Net Zero

Planning & Design Implementation Success Monitoring

• Profound know-how • As general contractor • Monitoring of
• Different scenarios for target • Coordination of all disciplines reductions targets
achievement • Siemens portfolio • Data analytics
• Recommendation based on agreed • Ecosystem of partners • Detecting deviations,
avaluation criteria correcting proactively
• High comfort and
product quality

Consulting Financing Operations & Services

• Basis of each successful project • Consulting and financing • Conventional maintenance
• Technology-independent and • Financing solutions • Technical operating services onsite
competent • Digital Service Center
• Roadmap built on existing • Remote and digital services
findings

23
Accelerating Digital
Transformation – Easier,
Faster, and at Scale
Through digitalization, every building system, component, occupant, and external factor — from weather to grid
conditions — can generate vital data points that provide actionable insights into building usage, operations, and
performance. The challenge is to unlock value faster and reduce complexity by implementing solutions that work
together seamlessly to process and analyze data points in a meaningful way while supporting future capabilities for
CRE companies to scale as they grow. That’s where Siemens Xcelerator comes in.

Siemens Xcelerator is our approach to support every aspect of digitalization by bringing together Siemens’ entire
portfolio with curated, modular digital offerings from an ever-growing ecosystem of best-in-class solution vendors
and technology partners that collaborate and innovate to create value based on the following common set of design
principles:

Interoperable: Flexible: Open: As-a-service:

Diverse solutions that work Modular, customizable Standardized application Secure, cloud-based XaaS
together seamlessly, offerings tailored for CRE programming interfaces subscription models lower
enabling fast, easy companies to achieve (API) that eliminate vendor upfront investment and
integration to accelerate immediate business lock-in and create common reduce operational
digital transformation and outcomes and scale as they data environments for complexity, while providing
realize ROI quickly while grow. robust analytics and easy access to the latest
providing a clear roadmap to real-time insights across innovations for at-scale
support future capabilities. all platforms. digital transformation.

24
Get Started on Your Digital
Transformation Journey
Siemens has the experience, knowledge, global presence, Wherever you are in your business journey and whatever your
partner ecosystem, and product portfolio that, when objectives or size, Siemens develops a digitalization roadmap
combined with Siemens Xcelerator and our integrated, that can start small from where you are with a single asset
holistic approach, simplifies and accelerates successful digital tailored to meet a specific KPI and scale quickly to deliver
transformation projects to unlock value faster and maximize sustainable, efficient, attractive, and profitable building
ROI. But we also understand that transforming commercial portfolios that overcome today’s challenges and are future-
real estate is a journey that, once embarked on, doesn’t end. proofed for tomorrow.

Let's talk! Visit our website

Join the conversation with our experts and Browse our Solution Finder to discover ways
discover how Siemens can support you on how to align your strategic business goals with
your way to sustainable business success. desired outcomes and technical use cases.

Read more about decarbonization

Download this White Paper to learn more about
the role of real estate in attaining net zero and
how digitalization enables emission reduction.

25
References
1. 2023 Energy trend: energy market volatility, April 2023
2. Commercial Property Insurance Premiums Spike a Record 20.4% in Q1, May 2023
3. Life cycle costs, Building Radar, 2021
4. Sensitivity Analysis: Relative Impact of Design, Commissioning Maintenance and Operational
Variables on the Energy Performance of Office Buildings, New Buildings Institute
5. Building Controls, US Department of Energy Office of Energy Efficiency and Renewable Energy
6. Mitigating the energy crisis with smart lighting, Signify, March 2022
7. Bringing Embodied Carbon Upfront, Green Building Council
8. Local Law No. 97, The City of New York
9. Energy Performance of Buildings: Climate Neutrality by 2050, European Parliament
10. Looking at ESG’s positive impact on property values, Ernst & Young, 2022
11. 5 digital solutions for a greener Europe, European Commission’s EU Science Hub
12. Solar PV and wind supply about 40% of building electricity use by 2030, International Energy
Agency
13. Majority of fleet vehicles will be electric in two years, Fleet News, 2022
14. EV Fleets reduce carbon emissions by more than 15 tonnes per vehicle, per year, Fleet News,
2023
15. The Impact of IT-OT convergence on ICS Security, Palo Alto Networks
16. 2023 Cyber Security Report, Check Point Research
17. The Tipping Point: Exploring the Surge in IoT Cyberattacks Globally, Check Point Research, 2023
18. World Security Report, 2023
19. Climate Risks in the Real Estate Sector, UN Environment Programme (UNEP) Finance Initiative,
2023
20. Global Real Estate Investment Continues to Fall in Q1, CBRE, May 2023
21. Out of office: US vacancy rates hit record high, The Financial Times Ltd, 2023
22. The Macroeconomic and Other Benefits of Energy Efficiency, European Commission
23. State of the Industry: The Future of Work, INCISIV, AT&T Business and Dubber Inc., 2022
24. 4 Things Gen Z and Millennials Expect from Their Workplace, Gallup, Inc.
25. Indoor Air Quality (IAQ) and Related Risk Factors for Sick Building Syndrome (SBS) at the Office
and Home, IOP Conference Series: Earth and Environmental Science, Volume 1140, 2022
26. Experimental study on the impact of indoor air quality on creativity, Shmitha Arikrishnan et al,
2023
27. Adapting to the next normal in retail: The customer experience imperative, McKinsey &
Company
28. Associations of Cognitive Function Scores with Carbon Dioxide, Ventilation, and Volatile Organic
Compound Exposures in Office Workers, Volume 124, Issue 6
29. The impact of working in a green certified building on cognitive function and health, Building
and Environment, Volume 114
30. Trends for 2022, PGIM Real Estate
31. EU to introduce new rules on greenwashing, November 2023
32. SBTi Monitoring Report 2022
33. ESG Data 101, Brightest, Inc.
34. 92% of Landlords Believe Employees Want More from Their Buildings - And They're Prepared to
Deliver, May 2022
35. What is the real cost of losing a commercial tenant?
36. What’s changed: Market conditions since COVID-19, Jones Lang LaSalle (JLL)
37. Decarbonizing the Built Environment, Jones Lang LaSalle (JLL)
38. The CHAOS Report, the Standish Group

© 2024 by Siemens AG, Berlin and Munich

© 2024 by Siemens AG, Berlin and Munich

27
Smart Smart Intrastructure combines the real and digital
worlds across energy systems, buildings and industries,
enhancing the way people live and work and significantly
improving efficiency and sustainability.

We work together with customers and partners to create

an ecosystem that both intuitively responds to the needs
of people and helps customers achieve their business
goals.

We help our customers to thrive, communites to progress

and sustainable development to advance our planet for
the next generation.

siemens.com/smart-Infrastructure

Published by
Siemens Switzerland Ltd

Smart Infrastructure
Global Headquarters
Theilerstrasse 1a
6300 Zug
Switzerland
Tel +41 58 724 24 24

For the U.S. published by

Siemens Industry Inc.

800 North Point Parkway

Suite 450
Alpharetta, GA 30005
United States

Article-No: SIRSS-WhitePaperTransformCommercialBuildings-WWEN-202402

Status: 02/2024

Subject to changes and errors. The information given in this document only contains
general descriptions and/or performance features which may not always specifically
reflect those described, or which may undergo modification in the course of further
development of the products. The requested performance features are binding only
when they are expressly agreed upon in the concluded contract.

© Siemens 2024
2024 by Siemens AG, Berlin and Munich