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    Giving buildings an “MRI” to make them more energy-efficient and resilient

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    Older buildings let thousands of dollars-worth of energy go to waste each year through leaky roofs, old windows, and insufficient insulation. But even as building owners face mounting pressure to comply with stricter energy codes, making smart decisions about how to invest in efficiency is a major challenge.Lamarr.AI, born in part from MIT research, is making the process of finding ways to improve the energy efficiency of buildings as easy as clicking a button. When customers order a building review, it triggers a coordinated symphony of drones, thermal and visible-range cameras, and artificial intelligence designed to identify problems and quantify the impact of potential upgrades. Lamarr.AI’s technology also assesses structural conditions, creates detailed 3D models of buildings, and recommends retrofits. The solution is already being used by leading organizations across facilities management as well as by architecture, engineering, and construction firms.“We identify the root cause of the anomalies we find,” says CEO and co-founder Tarek Rakha PhD ’15. “Our platform doesn’t just say, ‘This is a hot spot and this is a cold spot.’ It specifies ‘This is infiltration or exfiltration. This is missing insulation. This is water intrusion.’ The detected anomalies are also mapped to a 3D model of the building, and there are deeper analytics, such as the cost of each retrofit and the return on investment.”To date, the company estimates its platform has helped clients across health care, higher education, and multifamily housing avoid over $3 million in unnecessary construction and retrofit costs by recommending targeted interventions over costly full-system replacements, while improving energy performance and extending asset life. For building owners managing portfolios worth hundreds of millions of dollars, Lamarr.AI’s approach represents a fundamental shift from reactive maintenance to strategic asset management.The founders, who also include MIT Professor John Fernández and Research Scientist Norhan Bayomi SM ’17, PhD ’21, are thrilled to see their technology accelerating the transition to more energy-efficient and higher-performing buildings.“Reducing carbon emissions in buildings gets you the greatest return on investment in terms of climate interventions, but what has been needed are the technologies and tools to help the real estate and construction sectors make the right decisions in a timely and economical way,” Fernández says.Automating building scansBayomi and Rakha completed their PhDs in the MIT Department of Architecture’s Building Technology Program. For her thesis, Bayomi developed technology to detect features of building exteriors and classify thermal anomalies through scans of buildings, with a specific focus on the impact of heat waves on low-income communities. Bayomi and her collaborators eventually deployed the system to detect air leaks as part of a partnership with a community in New York City.After graduating MIT, Rakha became an assistant professor at Syracuse University. In 2015, together with fellow Syracuse University Professor Senem Velipasalar, he began developing his concept for drone-based building analytics — an idea that later received support through a grant from New York State’s Department of Economic Development. In 2019, Bayomi and Fernández joined the project, and the team received a $1.8 million research award from the U.S. Department of Energy.“The technology is like giving a building an MRI using drones, infrared imaging, visible light imaging, and proprietary AI that we developed through computer vision technology, along with large language models for report generation,” Rakha explains.“When we started the research, we saw firsthand how vulnerable communities were suffering from inefficient buildings, but couldn’t afford comprehensive diagnostics,” Bayomi says. “We knew that if we could automate this process and reduce costs while improving accuracy, we’d unlock a massive market. Now we’re seeing demand from everyone, from municipal buildings to major institutional portfolios.”Lamarr.AI was officially founded in 2021 to commercialize the technology, and the founders wasted no time tapping into MIT’s entrepreneurial ecosystem. First, they received a small seed grant from the MIT Sandbox Innovation Fund. In 2022, they won the MITdesignX prize and were semifinalists in the MIT $100K Entrepreneurship Competition. The founders named the company after Hedy Lamarr, the famous actress and inventor of a patented technology that became the basis for many modern secure communications.Current methods for detecting air leaks in buildings utilize fan pressurizers or smoke. Contractors or building engineers may also spot-check buildings with handheld infrared cameras to manually identify temperature differences across individual walls, windows, and ductwork.Lamarr.AI’s system can perform building inspections far more quickly. Building managers can order the company’s scans online and select when they’d like the drone to fly. Lamarr.AI partners with drone companies worldwide to fly off-the-shelf drones around buildings, providing them with flight plans and specifications for success. Images are then uploaded onto Lamarr.AI’s platform for automated analysis.“As an example, a survey of a 180,000-square-foot building like the MIT Schwarzman College of Computing, which we scanned, produces around 2,000 images,” Fernández says. “For someone to go through those manually would take a couple of weeks. Our models autonomously analyze those images in a few seconds.”After the analysis, Lamarr.AI’s platform generates a report that includes the suspected root cause of every weak point found, an estimated cost to correct that problem, and its estimated return on investment using advanced building energy simulations.“We knew if we were able to quickly, inexpensively, and accurately survey the thermal envelope of buildings and understand their performance, we would be addressing a huge need in the real estate, building construction, and built environment sectors,” Fernández explains. “Thermal anomalies are a huge cause of unwanted heat loss, and more than 45 percent of construction defects are tied to envelope failures.”The ability to operate at scale is especially attractive to building owners and operators, who often manage large portfolios of buildings across multiple campuses.“We see Lamarr.AI becoming the premier solution for building portfolio diagnostics and prognosis across the globe, where every building can be equipped not just for the climate crisis, but also to minimize energy losses and be more efficient, safer, and sustainable,” Rakha says.Building science for everyoneLamarr.AI has worked with building operators across the U.S. as well as in Canada, the United Kingdom, and the United Arab Emirates.In June, Lamarr.AI partnered with the City of Detroit, with support from Newlab and Michigan Central, to inspect three municipal buildings to identify areas for improvement. Across two of the buildings, the system identified more than 460 problems like insulation gaps and water leaks. The findings were presented in a report that also utilized energy simulations to demonstrate that upgrades, such as window replacements and targeted weatherization, could reduce HVAC energy use by up to 22 percent.The entire process took a few days. The founders note that it was the first building inspection drone flight to utilize an off-site operator, an approach that further enhances the scalability of their platform. It also helps further reduce costs, which could make building scans available to a broader swath of people around the world.“We’re democratizing access to very high-value building science expertise that previously cost tens of thousands per audit,” Bayomi says. “Our platform makes advanced diagnostics affordable enough for routine use, not just one-time assessments. The bigger vision is automated, regular building health monitoring that keeps facilities teams informed in real-time, enabling proactive decisions rather than reactive crisis management. When building intelligence becomes continuous and accessible, operators can optimize performance systematically rather than waiting for problems to emerge.” More

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      Enabling a circular economy in the built environment

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      The amount of waste generated by the construction sector underscores an urgent need for embracing circularity — a sustainable model that aims to minimize waste and maximize material efficiency through recovery and reuse — in the built environment: 600 million tons of construction and demolition waste was produced in the United States alone in 2018, with 820 million tons reported in the European Union, and an excess of 2 billion tons annually in China.This significant resource loss embedded in our current industrial ecosystem marks a linear economy that operates on a “take-make-dispose” model of construction; in contrast, the “make-use-reuse” approach of a circular economy offers an important opportunity to reduce environmental impacts.A team of MIT researchers has begun to assess what may be needed to spur widespread circular transition within the built environment in a new open-access study that aims to understand stakeholders’ current perceptions of circularity and quantify their willingness to pay.“This paper acts as an initial endeavor into understanding what the industry may be motivated by, and how integration of stakeholder motivations could lead to greater adoption,” says lead author Juliana Berglund-Brown, PhD student in the Department of Architecture at MIT.Considering stakeholders’ perceptionsThree different stakeholder groups from North America, Europe, and Asia — material suppliers, design and construction teams, and real estate developers — were surveyed by the research team that also comprises Akrisht Pandey ’23; Fabio Duarte, associate director of the MIT Senseable City Lab; Raquel Ganitsky, fellow in the Sustainable Real Estate Development Action Program; Randolph Kirchain, co-director of MIT Concrete Sustainability Hub; and Siqi Zheng, the STL Champion Professor of Urban and Real Estate Sustainability at Department of Urban Studies and Planning.Despite growing awareness of reuse practice among construction industry stakeholders, circular practices have yet to be implemented at scale — attributable to many factors that influence the intersection of construction needs with government regulations and the economic interests of real estate developers.The study notes that perceived barriers to circular adoption differ based on industry role, with lack of both client interest and standardized structural assessment methods identified as the primary concern of design and construction teams, while the largest deterrents for material suppliers are logistics complexity, and supply uncertainty. Real estate developers, on the other hand, are chiefly concerned with higher costs and structural assessment. Yet encouragingly, respondents expressed willingness to absorb higher costs, with developers indicating readiness to pay an average of 9.6 percent higher construction costs for a minimum 52.9 percent reduction in embodied carbon — and all stakeholders highly favor the potential of incentives like tax exemptions to aid with cost premiums.Next steps to encourage circularityThe findings highlight the need for further conversation between design teams and developers, as well as for additional exploration into potential solutions to practical challenges. “The thing about circularity is that there is opportunity for a lot of value creation, and subsequently profit,” says Berglund-Brown. “If people are motivated by cost, let’s provide a cost incentive, or establish strategies that have one.”When it comes to motivating reasons to adopt circularity practices, the study also found trends emerging by industry role. Future net-zero goals influence developers as well as design and construction teams, with government regulation the third-most frequently named reason across all respondent types.“The construction industry needs a market driver to embrace circularity,” says Berglund-Brown, “Be it carrots or sticks, stakeholders require incentives for adoption.”The effect of policy to motivate change cannot be understated, with major strides being made in low operational carbon building design after policy restricting emissions was introduced, such as Local Law 97 in New York City and the Building Emissions Reduction and Disclosure Ordinance in Boston. These pieces of policy, and their results, can serve as models for embodied carbon reduction policy elsewhere.Berglund-Brown suggests that municipalities might initiate ordinances requiring buildings to be deconstructed, which would allow components to be reused, curbing demolition methods that result in waste rather than salvage. Top-down ordinances could be one way to trigger a supply chain shift toward reprocessing building materials that are typically deemed “end-of-life.”The study also identifies other challenges to the implementation of circularity at scale, including risk associated with how to reuse materials in new buildings, and disrupting status quo design practices.“Understanding the best way to motivate transition despite uncertainty is where our work comes in,” says Berglund-Brown. “Beyond that, researchers can continue to do a lot to alleviate risk — like developing standards for reuse.”Innovations that challenge the status quoDisrupting the status quo is not unusual for MIT researchers; other visionary work in construction circularity pioneered at MIT includes “a smart kit of parts” called Pixelframe. This system for modular concrete reuse allows building elements to be disassembled and rebuilt several times, aiding deconstruction and reuse while maintaining material efficiency and versatility.Developed by MIT Climate and Sustainability Consortium Associate Director Caitlin Mueller’s research team, Pixelframe is designed to accommodate a wide range of applications from housing to warehouses, with each piece of interlocking precast concrete modules, called Pixels, assigned a material passport to enable tracking through its many life cycles.Mueller’s work demonstrates that circularity can work technically and logistically at the scale of the built environment — by designing specifically for disassembly, configuration, versatility, and upfront carbon and cost efficiency.“This can be built today. This is building code-compliant today,” said Mueller of Pixelframe in a keynote speech at the recent MCSC Annual Symposium, which saw industry representatives and members of the MIT community coming together to discuss scalable solutions to climate and sustainability problems. “We currently have the potential for high-impact carbon reduction as a compelling alternative to the business-as-usual construction methods we are used to.”Pixelframe was recently awarded a grant by the Massachusetts Clean Energy Center (MassCEC) to pursue commercialization, an important next step toward integrating innovations like this into a circular economy in practice. “It’s MassCEC’s job to make sure that these climate leaders have the resources they need to turn their technologies into successful businesses that make a difference around the world,” said MassCEC CEO Emily Reichart, in a press release.Additional support for circular innovation has emerged thanks to a historic piece of climate legislation from the Biden administration. The Environmental Protection Agency recently awarded a federal grant on the topic of advancing steel reuse to Berglund-Brown — whose PhD thesis focuses on scaling the reuse of structural heavy-section steel — and John Ochsendorf, the Class of 1942 Professor of Civil and Environmental Engineering and Architecture at MIT.“There is a lot of exciting upcoming work on this topic,” says Berglund-Brown. “To any practitioners reading this who are interested in getting involved — please reach out.”The study is supported in part by the MIT Climate and Sustainability Consortium. 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      in Environment

      MIT Center for Real Estate advances climate and sustainable real estate research agenda

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      Real estate investors are increasingly putting sustainability at the center of their decision-making processes, given the close association between climate risk and real estate assets, both of which are location-based.

      This growing emphasis comes at a time when the real estate industry is one of the biggest contributors to global warming; its embodied and operational carbon accounts for more than one-third of total carbon emissions. More stringent building decarbonization regulations are putting pressure on real estate owners and investors, who must invest heavily to retrofit their buildings or pay “carbon penalties” and see their assets lose value.

      The impacts of acute and chronic climate risks — flooding, hurricanes, wildfires, droughts, sea-level rise, and extreme weather — are becoming more salient. Action across all areas of the real estate sector will be required to limit the social and economic risks arising from the climate crisis. But what business and policy levers are most effective at guiding the industry toward a more sustainable future?

      The MIT Center for Real Estate (MIT/CRE) believes that the real estate industry can be a catalyst for the rapid mobilization of a global transition to a greener society. Since its inception in 1983, MIT/CRE has focused on the physical aspect of real estate, especially the development industry, and how the built environment gets produced and changed.

      “The real estate industry is now at the critical moment to address the climate crisis. That is why our center initiated this major research agenda on climate and real estate two years ago,” says William Wheaton, a former director of MIT/CRE and professor emeritus in MIT’s Department of Economics, who is leading a research project on the impact of flood risks in real estate markets.

      Producing high-quality research to support climate actions

      The work of scientists and practitioners responding to the climate crisis is often bifurcated into mitigation or adaptation responses. Mitigation seeks to reduce the severity of the climate crisis by addressing emissions, while adaptation efforts seek to anticipate the most severe effects of the crisis and minimize potential risks to people and the built environment.

      The fundamental nature of the real estate industry — location-based and capital-intensive — enables potential meaningful action for both mitigation and adaptation interventions. Exploring both avenues, MIT/CRE faculty and researchers have published academic papers exploring how chronic climate events such as extreme temperatures lower people’s expressed happiness and also disrupt habits of daily life; and how acute climate events such as hurricanes damage the built environment and decrease the financial value of real estate.

      “This ongoing research production centers on industry’s imperative to take action quickly, the real losses resulting from inaction, and the potential social and business value creation for early adopters of more sustainable practices,” says Siqi Zheng, a co-author of those papers, who is the MIT/CRE faculty director and the STL Champion Professor of Urban and Real Estate Sustainability.

      Building a global community of academics and industry leaders

      In addition to sponsoring research and related courses, MIT/CRE has created a global network of researchers and industry leaders, centered around sharing ideas and experience to quickly scale more sustainable practices, such as building decarbonization and circular economy in real estate, as well as climate risk modeling and pricing. Collaborating with industry leaders from the investment and real estate sector, such as EY, Veris Residential, Moody’s Analytics, Colliers, Finvest, KPF, Taurus Investment Holdings, Climate Alpha, and CRE alumnus Paul Clayton SM ’02, MIT/CRE blends real-world experiences and questions with applied data and projects to create a “living lab” for MIT/CRE researchers to conduct climate research.

      At an inaugural symposium on climate and real estate held at MIT in December 2022, more than a dozen scholars presented papers on the intersection of real estate and sustainability, which will form the basis of a special issue on climate change and real estate in the Journal of Regional Science. A “fireside chat” connected scholars and industry leaders in practical conversations about how to use research to aid practitioners.

      “Dissemination of research is critical to the success of our efforts to address climate change in the real estate industry,” says David Geltner, post-tenure professor of real estate finance and former director of  MIT/CRE, whose research group is working on climate risks and commercial real estate. “If we produce excellent research but it is cloistered in academic journals, it does no one any good. Similarly, if we do not work with collaborators to focus our research, we run the risk of investigating levers to reduce emissions that are of no use to practitioners.”

      Juan Palacios, coordinator of MIT/CRE’s climate and real estate research team, emphasizes that industry collaboration creates a two-way sharing of information that refines how research is being conducted at the center and ensures that it has positive impact.

      “More and more real estate investors and market players are putting sustainability at the center of their investment approach,” says Zheng. “A broad range of stakeholders (investors, regulators, insurers, and the public) have started to understand that long-term profitability cannot be achieved without embracing multiple dimensions of sustainability such as climate, wealth inequality, public health, and social welfare. Because of its unique relationship with industry collaborators and its place in the MIT innovation ecosystem, MIT/CRE has a responsibility and the opportunity to champion multiple pathways toward greater sustainability in the real estate industry.” More

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      in Environment

      MIT Center for Real Estate launches the Asia Real Estate Initiative

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      To appreciate the explosive urbanization taking place in Asia, consider this analogy: Every 40 days, a city the equivalent size of Boston is built in Asia. Of the $24.7 trillion real estate investment opportunities predicted by 2030 in emerging cities, $17.8 trillion (72 percent) will be in Asia. While this growth is exciting to the real estate industry, it brings with it the attendant social and environmental issues.

      To promote a sustainable and innovative approach to this growth, leadership at the MIT Center for Real Estate (MIT CRE) recently established the Asia Real Estate Initiative (AREI), which aims to become a platform for industry leaders, entrepreneurs, and the academic community to find solutions to the practical concerns of real estate development across these countries.

      “Behind the creation of this initiative is the understanding that Asia is a living lab for the study of future global urban development,” says Hashim Sarkis, dean of the MIT School of Architecture and Planning.

      An investment in cities of the future

      One of the areas in AREI’s scope of focus is connecting sustainability and technology in real estate.

      “We believe the real estate sector should work cooperatively with the energy, science, and technology sectors to solve the climate challenges,” says Richard Lester, the Institute’s associate provost for international activities. “AREI will engage academics and industry leaders, nongovernment organizations, and civic leaders globally and in Asia, to advance sharing knowledge and research.”

      In its effort to understand how trends and new technologies will impact the future of real estate, AREI has received initial support from a prominent alumnus of MIT CRE who wishes to remain anonymous. The gift will support a cohort of researchers working on innovative technologies applicable to advancing real estate sustainability goals, with a special focus on the global and Asia markets. The call for applications is already under way, with AREI seeking to collaborate with scholars who have backgrounds in economics, finance, urban planning, technology, engineering, and other disciplines.

      “The research on real estate sustainability and technology could transform this industry and help invent global real estate of the future,” says Professor Siqi Zheng, faculty director of MIT CRE and AREI faculty chair. “The pairing of real estate and technology often leads to innovative and differential real estate development strategies such as buildings that are green, smart, and healthy.”

      The initiative arrives at a key time to make a significant impact and cement a leadership role in real estate development across Asia. MIT CRE is positioned to help the industry increase its efficiency and social responsibility, with nearly 40 years of pioneering research in the field. Zheng, an established scholar with expertise on urban growth in fast-urbanizing regions, is the former president of the Asia Real Estate Society and sits on the Board of American Real Estate and Urban Economics Association. Her research has been supported by international institutions including the World Bank, the Asian Development Bank, and the Lincoln Institute of Land Policy.

      “The researchers in AREI are now working on three interrelated themes: the future of real estate and live-work-play dynamics; connecting sustainability and technology in real estate; and innovations in real estate finance and business,” says Zheng.

      The first theme has already yielded a book — “Toward Urban Economic Vibrancy: Patterns and Practices in Asia’s New Cities” — recently published by SA+P Press.

      Engaging thought leaders and global stakeholders

      AREI also plans to collaborate with counterparts in Asia to contribute to research, education, and industry dialogue to meet the challenges of sustainable city-making across the continent and identify areas for innovation. Traditionally, real estate has been a very local business with a lengthy value chain, according to Zhengzhen Tan, director of AREI. Most developers focused their career on one particular product type in one particular regional market. AREI is working to change that dynamic.

      “We want to create a cross-border dialogue within Asia and among Asia, North America, and European leaders to exchange knowledge and practices,” says Tan. “The real estate industry’s learning costs are very high compared to other sectors. Collective learning will reduce the cost of failure and have a significant impact on these global issues.”

      The 2021 United Nations Climate Change Conference in Glasgow shed additional light on environmental commitments being made by governments in Asia. With real estate representing 40 percent of global greenhouse gas emissions, the Asian real estate market is undergoing an urgent transformation to deliver on this commitment.

      “One of the most pressing calls is to get to net-zero emissions for real estate development and operation,” says Tan. “Real estate investors and developers are making short- and long-term choices that are locking in environmental footprints for the ‘decisive decade.’ We hope to inspire developers and investors to think differently and get out of their comfort zone.” More