Smart cities will impact the way we live and work in the very near future. Real estate stands to benefit from the data produced in these cities with improved services for clients.
In the labs, I often point out to visitors that we’ve based our work on the preamble to the Code of Ethics. I’ve included it below with the relevant bits highlighted:
Under all is the land. Upon its wise utilization and widely allocated ownership depend the survival and growth of free institutions and of our civilization. REALTORS® should recognize that the interests of the nation and its citizens require the highest and best use of the land and the widest distribution of land ownership. They require the creation of adequate housing, the building of functioning cities, the development of productive industries and farms, and the preservation of a healthful environment.
At CRT Labs, we use this to focus our mission. It’s not only key to your work, but also, to the potential that the Internet of Things, renewable energy, and community gardening have to impact your industry. In order to support the ‘building of functioning cities’ tenant, we’ve spoken to several smart city projects throughout the US. We believe that data from the smart city will go a long way to shaping how you do business in the future. It will change the way you interact with your customers and help you in supporting their buying choices. We are just at the very beginning of this and there’s still a way to go before this is mainstream, but what’s already happening is exciting.
What are smart cities?
Simply put, smart cities are cities that use existing data and connected sensors to:
- Capture data and performance metrics to improve city services
- Monitor city performance
- Inform the general public
Cities great and small are employing smart city techniques all over the world. Singapore is one of the big leaders in this space, as is Barcelona. Here in the US, cities large and small have active programs. From Columbus, Ohio, to Chicago to Louisville, Kentucky as examples. For this series, I want to use what’s in my own back yard. Chicago has garnered a lot of attention of late for its Array of Things initiative and the use of its open data portal to engage the citizens.
Why do they matter?
Here’s why it matters to you: there are massive amounts of data that will be coming off these devices that will show how specific areas of a city are performing. As examples, you’ll be able to see things like:
- Pedestrian and vehicle patterns and counts aggregated by time of day
- Utilization patterns for parks and community buildings
- Temperature variation at your work and at your home on a block by block basis
- Air quality outside your door and any destination you need to travel to
- Average sunlight exposure at any location
- Standing water after a rainstorm
A number of those things above are key to how you’re home or property performs. Understanding microclimates will help buildings use less energy because they can adjust based on time of day or season. We can also understand busy residential and commercial areas are and use that as part of our marketing material or a widget on a website. When are the peak hours at the community pool or park? Data for a community could also inform when you hold open houses. How many people are in a neighborhood during a given day?
This is just the surface. I’m going to use this series to interview people here in Chicago who are involved in the smart cities initiatives and highlight where there are opportunities for real estate. If you have a story about smart city activity in your area, I encourage you to share it.