There’s been increasing interest in what is known as beacon technology. Usually associated with retail marketing, beacon technology first emerged in 2013. Today the technology is driving a huge growth in sales with an expected increase in sales from $519 million in 2016, to $56 billion in 2026.
Apple invented the standard for beacon technology in 2013. Essentially the technology depends on users downloading the app on their smart phone which allows them to receive messages from Beacon enabled locations. In essence, the technology employs Bluetooth low energy (BLE) wireless technology that sends a signal that can be received on a user iPhone that is near the beacon transmitter. The user must opt in to the specific Beacon application. The beacon sends out a signal every second or more to a short distance which can range from a few feet to several hundred yards.
While Apple invented the technology, it does not provide the hardware. There are several leading vendors of the beacon transmitters including Kontakt, Bluesense, Gelo, Estimote, and Google’s version, Eddystone.
So why should CRE managers have an interest in beacon technology? Essentially beacon technology is an extension of the smart building format that focuses on building automation and the Internet of Things (IOT). With beacon technology, managers can keep track of space utilization by tracking workstation use, vacancies, etc. Beacon technology can also track such things as energy use, by tracking temperature fluctuations, floor space use, employee traffic patterns, etc. CRE managers can use the technology to push messages to visitors such as meeting location, daily event schedules, and other information helpful to visitors.
In the event of emergencies, beacon technology can alert employees of incident status, exit routes, and alert rescue personnel of employee locations, and status.
Beyond office and retail use, beacon technology is being widely employed in the sports industry. Major League Baseball has deployed beacon technology in nearly all of the 30 major league parks as of 2024. Baseball fans can get information on concession deals, seat upgrades, and game schedules. And museums have discovered the benefits of beacon technology by delivering exhibit information, floor plans, and information on specific exhibits that replaces the audio headsets. Museums gather information on attendee interest with specific exhibits that help with future planning.
Beacon technology allows property managers to deliver personalized updates and notifications directly to tenants’ smartphones. This can include reminders for lease renewals, maintenance schedules, or upcoming building events. Tenants can also receive location-based messages, such as details about nearby amenities or promotions for services available within the building.
For large office complexes, beacons can guide tenants and visitors through the property with turn-by-turn directions. This is especially helpful for first-time visitors or individuals with accessibility needs.
With beacon-powered apps, tenants can easily request services such as cleaning, IT support, or conference room bookings. This improves tenant satisfaction and simplifies communication between property managers and tenants.
Beacon technology integrates with building management systems to monitor equipment and systems in real time. Property managers can receive alerts when a system requires maintenance, preventing breakdowns and minimizing downtime.
Beacons track occupancy rates across various building spaces and allow property managers to identify underutilized areas. This data can be used to optimize space usage or reallocate resources.
By monitoring foot traffic, energy usage, and building patterns, beacon data helps identify inefficiencies. Property managers can use this data to reduce energy consumption, adjust cleaning schedules, and optimize staffing, leading to significant cost savings.
Beacons can integrate with access control systems to monitor and restrict movement within the building. This ensures that only authorized personnel have access to specific areas.
During emergencies, beacons provide guidance to employees and visitors, showing the nearest safe exits or alerting them to blocked pathways. Rescue teams can also use beacon data to locate individuals quickly.
With beacon-enabled visitor authentication, guests can receive temporary digital passes on their smartphones, eliminating the need for physical badges. This not only enhances security but also improves the visitor check-in process.
Beacon technology raises the issue of personal privacy. Critics note that the technology can be abused by tracking individual’s buying behavior and location within stores and offices. The fact that users can opt out of a beacon technology solves the privacy issue, but is not a long-term solution.
Beacon technology is yet another example of how technology is transforming the personal experience from the workplace, to retail, sports, education, hospitality, entertainment, and an almost limitless variety of activities at the intersection of people and places. We’ve stressed the need for CRE managers and professionals to stay abreast of real estate technology trends since it is surely technology that will define the CRE mission of the near future.
Similarly, advanced tools like real estate lease accounting software are revolutionizing how businesses manage their lease portfolios. These platforms provide CRE managers with critical insights into lease data, operational costs, and compliance requirements, enabling smarter decision-making. By combining innovations like beacon technology with good lease accounting solutions, CRE professionals can optimize their lease management strategies, reduce costs, and maximize ROI while staying ahead in a competitive real estate market.
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