Not long ago, a centrally located building was considered a safe investment. Location dominated every valuation. That logic is shifting. Today it is no longer the address that decides a building’s value, but its energy performance and operational efficiency.
Buildings that consume too much and operate inefficiently are under pressure from all sides. Banks are limiting financing for energy-inefficient assets. Tenants are screening for ESG criteria and avoiding spaces that fail to meet them. Regulatory frameworks such as CSRD, the EU Taxonomy, and national energy laws are steadily eroding the value of inefficient properties.
The result is what we now call stranded assets. These are buildings that end up on the sidelines of the market even though they are structurally sound. This is not a distant scenario but a present reality. The market is already shifting. What once seemed like a long-term safe bet is turning into a liability, not because of poor construction but because of poor operation.
A simple example shows the contrast. Two almost identical office buildings both start in 2024 with the same market value. One ignores regulatory requirements, loses tenants, and drops 20 to 25 percent in value within a few years. The other adopts AI-driven optimization, reduces operating costs, and meets ESG standards. Instead of losing value, it achieves a green premium and grows by about 10 percent. The gap between the two is more than 15 million euros in value, entirely depending on whether action was taken or not.
Many owners underestimate how fast this development is unfolding. They assume only major renovations or even new construction can secure their portfolios. In reality the real lever lies elsewhere: in daily operations, and more specifically in the intelligent control of existing systems.
AI-powered building automation provides exactly that. Without new sensors, without structural interventions, and without disrupting ongoing operations, energy consumption can be reduced by up to 30 percent. CO₂ emissions fall, operating costs shrink, and the effect scales across entire portfolios.
The technology is not a distant vision. It is already available and proven in practice. It uses existing infrastructure and maximizes its efficiency through data-driven, self-learning systems. In other words, no heavy upfront investments in new hardware are required. The key is to make smarter use of what is already in place.
Those who act now gain more than efficiency. They gain time. The market is shifting fast. Energy efficiency is becoming the new location factor. And those who ignore it risk watching their asset turn from value driver into dead weight.