WHY SMART TECHNOLOGY STILL STRUGGLES TO FIND ITS PLACE IN NE

In an era where smart buildings are no longer a luxury but an expectation, it seems logical that integrating technology platforms during the development stage of a new building would be a no-brainer. Yet, across the real estate industry, from multifamily to commercial and mixed-use projects, many owners and developers still find themselves retrofitting critical systems after occupancy or underutilizing the capabilities of platforms they’ve already installed. The root issue isn’t a lack of available technology. It’s the persistent difficulty of implementing it during the earliest stages of development.

Over the last decade, I’ve worked with dozens of developers, operators, and asset managers, and nearly all have encountered this same frustration. Despite the promise of smart access, energy monitoring, and digital infrastructure, real estate projects often miss the mark, not due to bad intentions, but because the process to get there remains disjointed.

Part of the challenge lies in the fragmented nature of development teams. Architects, general contractors, mechanical engineers, technology consultants, and future operators all play vital roles, yet rarely sit at the same table with shared accountability for technology outcomes. Decisions about systems like access control, metering, Wi-Fi infrastructure, or IoT sensors are often deferred to later stages, or worse, treated like afterthoughts.

As Jordan Morales, VP of Development for a national multifamily platform, told me: “We’ve had properties where the building was already topped out before the tech conversation even started. That’s a recipe for costly retrofits and missed opportunities.”

Even when technology is brought into the conversation early, the fear of obsolescence can paralyze decision-making. Developers hesitate to invest in a platform that may seem outdated by the time the building opens its doors. This tendency to delay or “wait and see” leads to gaps in planning, such as missing conduit pathways or underpowered IT closets. The result? Higher costs and lower functionality.

Cost control is another major factor. In the preconstruction phase, anything that doesn’t have a clearly defined scope or cost gets scrutinized or value-engineered out. Technology systems often fall into this grey zone, especially when vendors aren’t selected yet or when the long-term operational value isn’t well understood. As one CFO of a regional development firm candidly put it, “If the payback doesn’t fit on a spreadsheet, it gets cut.”

Equally problematic is the lack of in-house expertise. Many real estate development teams still don’t have a dedicated technology lead. Instead, they rely on traditional project managers or consultants who may not fully grasp how integrated systems will support leasing, maintenance, energy efficiency, or resident satisfaction down the line.

One of the most successful tech integrations I’ve seen came from a midsize real estate firm that invested early in a dedicated “Technology Owner’s Rep”, a professional who worked alongside the architects and GC from day one. That individual made sure that smart building systems weren’t just bolted on at the end but were embedded in the design and coordinated across trades. As a result, that development delivered a fully integrated property management platform with smart access, leak detection, and real-time HVAC analytics, on time and under budget.

It's also worth noting that success depends on the feedback loop between development and operations. When the eventual property manager or asset owner is excluded from tech planning, the systems selected may not align with day-to-day realities. I’ve worked with owners who inherited buildings full of disconnected platforms, each requiring their own dashboard and log-in. Their teams spent more time wrestling with tech than running the asset.

As David Chen, Managing Director of Asset Services at a national REIT, put it, “Every system should talk to each other, and to us. If it doesn’t create operational clarity, it’s just noise.”

So where do we go from here? The solution isn’t more technology. It’s a better process. One that includes a clear technology roadmap from the outset, accountability across project teams, and a focus on long-term operational ROI, not just capital cost.

At WT Advisory Services, we help real estate owners and operators navigate this landscape with clarity. We believe technology is not a separate category, it’s infrastructure. It must be planned, budgeted, and executed with the same rigor as structural steel or HVAC. And when done right, it doesn’t just make a building smarter. It makes it more profitable, more resilient, and more responsive to the people who live and work there.

If you’re planning a new development, the best time to build your tech strategy is now, not after the ribbon is cut.

To learn more or start a conversation, reach out today. We'd be honored to partner with you.

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