Property managers and building engineers are turning to technology to optimize operations, improve building performance, and make more informed, data-driven decisions. One of the most promising technological innovations is digital twin technology. By creating virtual replicas of physical properties, digital twins enable real-time monitoring, predictive analytics, and enhanced operational efficiency. Digital twin technology is transforming property management, improving energy efficiency, and enabling smarter operational decisions in CRE and many properties have already caught on to the benefits and implemented it effectively.

What is Digital Twin Technology?

A digital twin is a virtual model of a physical asset, system, or process that simulates the real-world conditions and behaviors. In the context of commercial real estate, a digital twin is a replica of a building or facility, often generated using data from sensors, building management systems, and other connected technologies. This virtual model is updated in real time, reflecting the building’s performance, occupancy levels, energy consumption, environmental conditions, and more.

Through this technology, operators with critical facility experience can thrive in an environment without the high stakes. For larger office buildings or facilities with intricate systems, an engineer with a background in this technology will definitely stand out in a stack of resumes.

Digital twin technology combines several elements, including Internet of Things (IoT) sensors, building management systems (BMS), geospatial data, and artificial intelligence (AI), to provide a comprehensive view of a building’s operations. These digital replicas offer CRE professionals the ability to monitor and manage properties more effectively, optimize energy use, and make informed decisions to enhance the building’s performance.

Digital Twins for Property Management

Effective property management is critical to the success of any commercial real estate asset. Digital twins are transforming how property managers maintain, operate, and optimize their buildings. Traditionally, property management relied heavily on manual processes, spreadsheets, and static reports to monitor building systems and address issues. With the advent of digital twin technology, property managers can access a real-time, data-rich virtual model of the building, making it easier to identify problems and implement solutions proactively.

One of the key benefits of digital twins in property management is the ability to conduct predictive maintenance. By continuously monitoring building systems such as HVAC, lighting, elevators, and security systems, digital twins allow property managers to identify potential issues before they lead to equipment failure or costly repairs. For example, if a heating system is showing signs of reduced efficiency, the digital twin can alert the property manager to take action before the system breaks down.

This proactive approach not only reduces downtime and repair costs but also improves tenant satisfaction. Tenants are less likely to experience disruptions or uncomfortable conditions when the building’s systems are being monitored and maintained more effectively.

The monitoring function of digital twins also allows property management professionals to better track building performance over time. By analyzing historical data, building managers can identify trends, make informed decisions about asset upgrades, and extend the lifespan of critical equipment. The digital twin can also simulate how different modifications or changes to the building will affect performance, enabling better planning for capital improvements.

Additionally, one of the most significant applications of digital twin technology in CRE is in the realm of energy efficiency. As buildings account for a significant portion of global energy consumption and carbon emissions, improving energy efficiency has become a top priority for property owners, managers, and tenants. Digital twins allow building managers to optimize energy use, identify inefficiencies, and reduce environmental impact.

Digital twins provide real-time insights into how energy is being used across the building. By analyzing data from sensors and building management systems, property managers can pinpoint areas where energy consumption is excessive or inefficient. For example, a digital twin can highlight areas of the building where HVAC systems are overworking, lighting is running unnecessarily, or appliances are using more energy than they should.

Using these insights, building operators can adjust systems in real-time to optimize energy consumption. This can result in significant cost savings and a reduction in the building’s overall energy footprint.

Smart Building Operations

Digital twins also play a critical role in transforming traditional buildings into smart buildings. By integrating IoT sensors with the digital twin model, building systems such as HVAC, lighting, and security can be automated based on real-time data. For example, if the building’s occupancy data shows that certain areas are underutilized during specific times of day, the lighting and HVAC systems can automatically adjust to reduce energy consumption in those spaces.

The Edge Building in Amsterdam, widely regarded as one of the greenest buildings in the world, according to Bloomberg, uses digital twin technology to manage energy consumption and building systems. It was also BREEAM’s (Building Research Establishment Environmental Assessment Method) highest rated building for a number of years. The Edge incorporates over 28,000 sensors, which collect real-time data on lighting, temperature, and occupancy. The building’s digital twin analyzes this data to optimize energy usage, ensuring that systems are running efficiently and only when necessary. As a result, the building has achieved a 70 percent reduction in energy use compared to similar office buildings.

Space Utilization and Layout Optimization

In addition to better operations using the IoT, this technology is also driving design and layout of space through detailed data on space utilization. Building managers can see how different areas of the building are being used by tenants, whether they are fully occupied, underutilized, or overcapacity. By tracking patterns of movement and usage, property managers can optimize the layout of spaces, identify areas for repurposing, and improve overall tenant satisfaction.

For example, a digital twin can reveal that a particular floor of a building is underused by tenants, suggesting an opportunity to repurpose that space for a new tenant or different purpose. Alternatively, digital twins can also identify areas where space is in high demand, helping landlords optimize leasing strategies and improve occupancy rates.

Challenges and Future of Digital Twin Technology in CRE

While digital twin technology offers numerous benefits, its implementation in CRE is not without challenges. The cost of creating a digital twin, integrating data from various systems, and maintaining the technology can be significant.
Connor Offutt, CEO & Co-founder of Aetos said, “Digital twin technology provides the platform and insights necessary to streamline your processes, enhance decision-making, and ensure your building – and your workforce – operates at its highest potential.”

Additionally, the quality of the data used to create digital twins is crucial; inaccurate or incomplete data can lead to misleading insights and poor decision-making.

However, as the technology matures and more CRE professionals adopt digital twins, the costs of implementation are expected to decrease. With the increasing demand for smart, sustainable buildings, digital twins will play a pivotal role in the future of commercial real estate, offering insights into building performance, energy efficiency, and operational management.

As more companies embrace this technology, digital twins will continue to drive innovation in the industry, improving building performance, reducing costs, and enhancing tenant satisfaction. As the technology evolves, the potential applications of digital twins in CRE do as well, and those who adopt it early will likely lead the way in creating more efficient, sustainable, and profitable buildings.

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