Financing smart buildings – value in the ‘new normal’

COVID-19 has caused a crisis for building owners and landlords – both in the public and private sectors. Patterns of work and public service are clearly changing as a result of the crisis and its aftermath. With this, the way in which we use public and commercial indoor spaces has been profoundly altered, shining a light on the need to optimise the hygiene, safety, and energy efficiency of buildings. We have seen a massive effort globally to rapidly and urgently adapt hospitals to cope with the pressures of the pandemic, operating safely and with flexibility.¹ Making healthcare buildings smart allows this flexibility – whether from the perspective of agile changes of use, security and safety, or an enhanced ability to morph to volatile circumstances. The evidence suggests that not only have smart hospitals been seen to cope better with the pressures of a global pandemic,^2,3 but that they are also a valuable long-term asset in transforming healthcare delivery so that it is clinically and financially sustainable long into the future.⁴

Indeed, there is a ‘perfect storm’ of factors which are coming together to simultaneously drive change and make healthcare buildings smart. Firstly, the economic pressures resulting from the pandemic are focusing minds on ways of achieving building management cost efficiencies (especially through energy efficiency).⁵ At the same time, COVID-19 has introduced new rules and ways of working to ensure hygiene, infection control, and safety, in buildings.⁶ Alongside these topical pressures are existing and emerging regulatory requirements that make fire and security upgrades mandatory.⁷ Equally, various policies around the world are setting targets to reach higher environmental standards in buildings. 

Making the case for ‘smart’ healthcare facilities