September 29, 2020
Equipment Asset Tracking Addresses Challenges of CRE Market
Equipment asset tracking can deliver significant benefits to the commercial real estate (CRE) market, especially when it comes to facilities management. In fact, the CRE market is facing several challenges right now with respect to facilities management. According to Dexma Energy Management, those challenges include:
- Tenants’ changing needs. More tenants are expressing the desire to rent or purchase space in green or NZEB (Net Zero Energy) buildings;
- Complicated processes that involve a lot of paperwork and time;
- Legislation, which has required companies to provide an increased number of certifications, reports, emission disclosures, and more;
- The complexity of business data, which places additional burdens on busy facilities managers; and
- Technology that isn’t user-friendly.
Cushman and Wakefield identifies sustainability as a top priority for tenants throughout 2019; “most consumers, which are millennials and Gen Zers, expect to do business with companies that use sustainable practices.” Subsequently, CRE companies “need to renovate existing facilities and improve use of energy, as well as ensure optimum facility condition, to attract and retain tenants.”
Those challenges have combined with the expansion of work-from-home policies related COVID-19, leaving the CRE space in even more dire need of cost and time savings.
If the renovation of existing facilities, improved energy usage and better facility condition are of high importance, then facilities managers must use an equipment tracking system to stay on top of preventive maintenance schedules and other information – for example, warranties and insurance policies. An equipment asset tracking system simplifies record-keeping and the management of equipment throughout its entire lifecycle, so companies are able to maximize their investments and keep their assets running at optimal levels.
Within any CRE building are numerous systems that must be maintained on an ongoing basis to keep tenants comfortable and safe. Any business owner knows the impact that a downed server, broken air conditioner or heater can have on employee productivity. And yet, it can be difficult to keep track of these systems and stay on top of routine maintenance. An equipment asset tracking system enables facilities managers to outsource that task by setting up customized notifications and reminders for key maintenance. They can also generate work orders through the system, look up an item’s complete maintenance history, and set up additional alerts to remind them of upcoming warranty expiration dates. Equipment that is routinely maintained will have a longer useful life on average, saving CRE companies time and money – and, most important, keeping tenants happy.
Cybersecurity is another concern of CRE companies, and properly updated equipment is vital for secure computing. In June 2018, the Federal Bureau of Investigations (FBI) issued a Public Service Announcement warning of the increased occurrence of business email/email account scams within the real estate industry. Between 2015 and 2017, the FBI stated, CRE companies experienced a 1,100 percent increase in the number of email scam victims and an approximate 2,200 percent rise in reported monetary losses. Routine maintenance and updates on IT equipment can go a long way toward keeping would-be scammers out.
Beyond those benefits of equipment asset tracking that real estate companies may not consider is the management of depreciation. Business owners must report the value of their fixed assets for accounting and compliance purposes. Those companies who rely on manual systems sometimes have to resort to guesswork when reporting these figures. Equipment asset tracking gives companies the peace of mind that comes from knowing that their data is accurate and in real time.
Asset Panda’s approach to equipment asset tracking is powerful, yet streamlined, comprehensive and yet simple to use. Completely customizable, Asset Panda’s free mobile app syncs with the cloud and gives our clients the ability to track their equipment and assets any way they want.