Retrofitting Aging Buildings Requires Strategic Tech Integration

Key Takeaways for Building Owners and Tech Integrators:

• Legacy systems complicate modernization.
• Infrastructure upgrades drive most costs.
• Occupant disruption is a real risk.
• Future-ready strategies pay off.

As technology advances, buildings and other static infrastructure can struggle to keep up. For buildings constructed before 2000, this is especially challenging as issues such as analog-to-digital conversion, antiquated HVAC and plumbing systems, and inadequate electrical infrastructure are costly and time-consuming to update. All of this, combined with limited network infrastructure, closet space, and cabling pathways that obstruct wired and wireless networking installations, complicates the retrofitting process.    

That said, complex doesn’t mean impossible or without a solid ROI. With the right plans and technology in place, retrofitting aging buildings with the latest smart building tech can be both feasible and cost-effective.

Assessing Common Technical Challenges

In today’s modern age where everything revolves around digital applications, automated processes, and the Internet of Things (IoT), it’s hard to think back to a time when none of this existed. However, once you look at how buildings were constructed and outfitted with OT infrastructure 25 or more years ago, the past quickly presents itself. Common challenges include:

Analog control systems. Aging HVAC, electrical, and plumbing systems often use analog controls that lack interoperability with modern IoT-based smart technologies, requiring costly rewiring and system replacements.

Fragmented data integration. If you’re lucky enough to have a digital OT infrastructure that collects and maintains relevant data and meta data, these data stores are typically isolated into individual silos, making it difficult to centralize data for modern AI-driven analytics.

Limited space for network infrastructure. It’s incredibly common for old buildings to utilize janitorial and utility closets as dual-use network infrastructure closets, which house critical network switching and Wi-Fi equipment. These closets typically lack ventilation, cooling, and pathways for horizontal and vertical cabling, which necessitates costly retrofits.

Inadequate electrical capacity. Electrical systems in older buildings were designed for lower loads and struggle to support the power demands of IoT infrastructure (who could have imagined IoT in 1992?), often necessitating expensive panel or wiring upgrades.

Let’s Talk Budget

Retrofitting pre-2000 buildings with smart technology often comes with a steep price tag because these buildings were typically not designed to accommodate the bandwidth, power demands, or environmental controls required by today’s interconnected systems. This requires careful planning to ensure the infrastructure meets today’s needs and remains viable for decades.

The most substantial line items in a retrofit budget typically include upgrading mechanical, electrical, and plumbing (MEP) systems to modern standards. For example, rewiring to support IoT devices, expanding network closet capacity, or replacing obsolete HVAC components to integrate with building automation systems (BAS) can involve invasive work, especially in occupied spaces. These upgrades often require phased construction plans, temporary service disruptions, and coordination across multiple contractors and vendors.

Building owners and facilities managers should approach smart retrofits with a lifecycle perspective and consider budgeting not only for immediate upgrades, but also for flexibility and scalability over the next 10 to 20 years. This will help ensure that they’re getting the most return on their investment and avoiding repeated disruptions to the building’s operations.

Common Occupant Disruptions During a Retrofitting Project

After navigating the financial complexities of retrofitting older buildings, managing disruptions to occupants during a retrofit project becomes the next critical challenge. Invasive tasks like drilling through floors/ceilings for network cabling or upgrading outdated electrical panels create noise and dust, disturbing tenants in occupied spaces. Retrofits of analog HVAC or plumbing systems often require extended downtime, disrupting climate control or water access.

Limited closet space for network infrastructure forces construction in tenant areas, causing accessibility issues. Unforeseen delays (common when retrofitting fragmented systems or uncovering structural barriers like asbestos) extend maintenance windows, further frustrating occupants.

Making Retrofits Smart and Strategic

Retrofitting older buildings with smart technology, though complex and costly due to technical and budgetary hurdles, can be achieved with a healthy ROI given the right research and preparation. By conducting thorough assessments, deploying modular technologies, upgrading critical infrastructure, and implementing intelligent budgeting, building owners can transform aging assets into efficient properties that maintain their usefulness for decades to come.

Next Steps for Building Owners and Tech Integrators:

With the high costs of retrofitting aging buildings presenting significant challenges, strategic approaches can effectively tackle the technical and financial difficulties of integrating smart technologies.  By focusing on compatibility, simplicity, and cost management, building owners can modernize aging infrastructure efficiently.

• Comprehensive system assessments. Conduct energy audits and digital readiness evaluations to pinpoint limitations of analog control systems and prioritize high-ROI upgrades such as smart lighting or thermostats. This approach addresses compatibility issues while addressing potential budget constraints.
• Modular technology integration. Deploy plug-and-play solutions, such as wireless IoT sensors or retrofit HVAC kits, to address fragmented data systems without costly rewiring.
• Dedicated network closets. Install network closets spaced 300 feet or less apart, which are to be used exclusively for network infrastructure equipment to enhance physical security by isolating critical systems and maintain regulated humidity and cooling levels for optimal performance.
• Electrical upgrades. Modernize electrical panels to support a growing number of smart devices, including IoT. Doing so ensures the seamless integration of AI-driven building management systems.
• Strategic budget allocation. Prioritize investments by phasing retrofits, starting with high-impact upgrades such as energy-efficient HVAC or IoT-compatible electrical systems, to spread costs over time.
• Future-proofing with analytics and renewables. Use AI-driven analytics to optimize system performance and incorporate renewables like solar panels to meet modern net-zero standards. This strategy enhances efficiency and ensures compliance with evolving energy regulations.