The Quiet Crisis in Commercial Real Estate
Commercial real estate is entering a new era—and not all assets are prepared for it. With hybrid work, shifting tenant expectations, ESG mandates, and rising capital costs, many properties are at risk of becoming obsolete. As JLL notes in their recent report, "Repositioning and Redevelopment Strategies for At-Risk Assets and Portfolios," successful owners must rethink how they invest in their buildings to avoid permanent value erosion.
But here's the untapped opportunity most still overlook: the data you're building generates could be the key to unlocking that future value.
The Drivers of Obsolescence
According to JLL, at-risk assets typically suffer from three interconnected pressures:
- Functional Obsolescence (outdated infrastructure or systems)
- Regulatory Risk (non-compliance with ESG or energy mandates)
- Market Mismatch (tenant demand shifting to more flexible, tech-forward spaces)
These buildings struggle with low occupancy, reduced net operating income (NOI), and limited investor interest. Redevelopment is often recommended—but the decisions about what to redevelop and how to reposition often lack the necessary insight.
This is where data comes in.
Building Data as a Strategic Asset
Every building is generating valuable data—occupancy patterns, energy loads, equipment runtimes, tenant behaviors, and more. Yet most of this data is ignored or unstructured. If building owners treated data the way they treat physical capital, they’d already be miles ahead.
In a recent example outside real estate, biotech company 23andMe sold for $256M, not for its operations, but for its structured, privacy-consented data. The same concept applies to CRE: if your building’s data is structured, governed, and owned, it becomes a long-term asset.
OpticWise helps clients build the digital infrastructure to make that possible.
Data-Driven Repositioning: What JLL Gets Right
JLL rightly points out that successful repositioning must align with the unique characteristics of a building—structure, systems, location, and tenant type. But how can you make those decisions without data?
Examples of how data informs repositioning:
- Occupancy analytics reveal underutilized areas that can be converted into amenity space.
- HVAC runtime and performance data help determine the ROI of system upgrades.
- Tenant digital behavior (WiFi usage, movement patterns) informs space redesign for hybrid work.
- Energy load patterns help prioritize insulation, lighting, or solar retrofits.
Without this intelligence, repositioning becomes speculative.
Retrofitting Isn’t Enough Without Data Infrastructure
JLL encourages energy retrofits and system upgrades—critical steps in modernizing an asset. But unless those systems are paired with a data infrastructure that collects, stores, and analyzes building intelligence, they remain a sunk cost.
OpticWise’s BoT® (Build of Things®) model ensures that every retrofit, every connected device, and every sensor is part of a holistic data strategy. That means:
- Full visibility into system performance
- Real-time alerts for inefficiencies
- Historical data for trend analysis and capital planning
- Structured storage for asset valuation and future sale
The Digital Asset Readiness Score™
As part of our Peak Property Performance Audit, OpticWise provides a Digital Asset Readiness Score™. This score helps owners understand how mature their data infrastructure is and how far they are from monetizing their data like an asset.
Think of it as a credit score for your building's data performance.
Buildings with high scores:
- Command better pricing during asset sale or refinance
- Attract tenants looking for ESG and smart building features
- Reduce operational risk and increase NOI
Why This Matters Now
The value of CRE data is compounding. With AI, regulatory pressures, and tenant demands rising, owners who don’t control and structure their data will fall behind.
JLL's report is a call to action for repositioning strategies—but without digital infrastructure, even the best plans fall short. Repositioning isn’t just about physical upgrades anymore.
It's about preparing your building to compete in a digital economy.
From Risk to Resilience
If your asset is at risk of becoming obsolete, you don’t just need a retrofit—you need a rethink. Your building is already talking. It's producing insights every second. But until you own and act on that data, you're flying blind.
Repositioning starts with listening.
OpticWise helps you do exactly that.
Schedule your Peak Property Performance Audit today and get your Digital Asset Readiness Score™.
Because your property isn’t just a structure.
It’s a source of strategic value.