Butlr Heat Sensing Tech provides insight into using office space.
Provided by Butlr
A version of this article was first featured in the CNBC Property Play Newsletter with Diana Olick. Property Play covers new and evolving opportunities for real estate investors, from individuals to venture capitalists, private equity funds, family offices, institutional investors and large public companies. Sign up to receive future editions directly in your inbox.
As more and more employees return to the office, by choice or force, large businesses are more interested than ever in understanding how to use their space. The pandemic will fundamentally change how people work and where they work, and even the dynamics of returning to offices can focus on how to make the most of their office space and monetize them, making them more energy efficient.
That’s why some companies use temperature. Butlr, a six-year-old San Francisco-based startup that was a spinoff of MIT Media Lab, leverages body temperature technology to understand how humans act and interact in the office without using cameras. In other words, it is anonymous.
Sensors located around the office space record heat and incorporate AI to examine every aspect of physical interaction. This includes occupancy, pedestrians, frequency and location of meetings, vacant or uncrowded areas, and impacts on heating and cooling systems. But that’s beyond that.
“Understanding privacy while understanding how colleagues behave and interact in the office will help them become a more productive, supportive and consistent place with their corporate culture. They look forward to being there. “This can impact retention and performance, and there may even be a shift in attitude from negative to positive.”
The company uses data to make decisions regarding layout and design, modification, hybrid work schedules, maintenance, cleaning schedules, and lease negotiations.
According to a new report from JLL, the costs of so-called office fitouts, or upgrades to spaces, are increasing.
“The focus on office attendance, employee experience and sustainability performance focuses on investment in high-quality workspaces, with increased spending on materials and shifting cost profiles to many projects,” according to the report.
JLL also said these rising costs and economic uncertainties contribute to reluctance in CRE investment decisions. It can have long-term impacts on the entire workplace. Both rising raw materials prices and labor shortages have led to an increase in overall construction costs in all regions.
Yet, more and more companies are pushing workers back into offices and cementing flexible work arrangements into a culture. Deng said that flexible work paradigm is seeing an increasing number of employers seeking data and insight into actual office use.
“We can think of this from a cultural and economic perspective,” he said.
In April, Butlr announced the completion of its latest investment round with a total of $75 million so far. The company’s clients span offices, higher education and senior care, and include names such as Verizon, CBRE, Carrier, and Compass Group.
The company serves customers in North America, Europe and Asia.
