GUEST SUBMISSION: The growing preference for sustainability is reshaping the Canadian rental market, driving a profound transformation in how properties are designed, built and managed.

Today’s renters are no longer content with conventional offerings; they actively seek homes that reflect their values and aspirations for a greener future. 

A recent QuadReal survey found that 83 per cent of Canadian renters prioritize sustainability when choosing where to live. From energy-efficient appliances to carbon reduction initiatives, climate-conscious living has shifted from a trend to an expectation.

This shift is redefining how developers and management firms approach property development, catalyzing a race to innovate and differentiate.

Proptech in the rental industry

Property technology (proptech) is redefining real estate by introducing smart, data-driven solutions that benefit both renters and developers. Across the industry, properties are implementing advanced building management systems, Internet of Things (IoT) sensor technology, adaptive thermostats and real-time air quality monitoring. These technologies enhance energy efficiency, improve resident experiences, and optimize operations.

To remain at the forefront of urban building solutions, developers like QuadReal have introduced more innovative changes across a wide range of properties and projects, including in mixed-use developments that align with both sustainability and smart city principles.

Archetype, Vancouver’s first tri-mix development incorporating office, light industrial and residential space, exemplifies this shift. The project integrates technology-driven sustainability solutions such as a Neighbourhood Energy Utility that captures waste heat from sewage to reduce reliance on traditional heating.

Smart building systems optimize energy use, while rainwater management solutions recycle water for irrigation. Beyond sustainability, mobile access solutions and other digital tools and connectivity platforms enhance convenience, cyber-security and the overall tenant experience.

By embedding smart, sustainable infrastructure into a multi-use urban hub, Archetype demonstrates how proptech can enhance efficiency, reduce emissions and improve the tenant experience - all while redefining how cities approach mixed-use development.

A competitive edge for developers

The accelerating adoption of proptech is providing developers with a competitive advantage. With advancements in artificial intelligence (AI), IoT and smart infrastructure leading the charge, developers are poised to offer the most integrated and innovative living experiences, setting themselves apart in a rapidly evolving market.

For instance, IoT sensors now provide real-time monitoring of occupancy, space conditions and air quality, allowing building systems to autonomously optimize energy usage. AI is also proving indispensable in predictive maintenance, using data and advanced analytics to pre-emptively address issues like leak detection, HVAC system failures, or electrical anomalies before they become costly problems. This efficiency also offers advantages to tenants, with early issue-detection meaning reduced impact and minimized disruption for renters.

By incorporating these cutting-edge technologies, developers are not only meeting the demand for smarter, more sustainable living environments but also positioning themselves as leaders in the push for responsible, innovative real estate development.

Proptech trends for 2025 and beyond

As we move deeper into 2025, several proptech trends continue to shape the future of rentals:

Strengthening community through smart integration

Seamlessly blending physical spaces with digital tools is transforming how residents connect, not just with their homes, but with each other. As more properties integrate these platforms, developers have new opportunities to foster engagement, strengthen tenant relationships and gather valuable insights to enhance living experiences.

Greentech integration

Sustainability is no longer optional - energy-efficient HVAC systems, smart lighting and other greentech innovations are becoming the standard. These technologies not only reduce environmental impact, but also enhance living quality, creating well-managed spaces that support both tenants and long-term property value.

Advanced building management systems (BMS)

Modern BMS is revolutionizing property management by reducing energy use, monitoring building performance and optimizing tenant comfort with minimal intervention. As these systems evolve, developers can focus more on innovation, efficiency and future-proofing their properties.

These trends signal a growing convergence of sustainability, technology and tenant-centred innovation, setting the stage for a more connected, eco-conscious and efficient rental market in the years to come. 

Navigating the roadblocks in building for the future 

While the intersection of proptech and ESG presents immense opportunities, challenges remain. Retrofitting older buildings can be complex and ensuring cybersecurity is critical. But when technology is incorporated from the start, costs align with standard development budgets - it's about designing smart from the outset, not adding expense. 

The good news? As adoption accelerates, implementation becomes even more efficient. With renters driving demand for sustainable living, developers have a clear opportunity to lead the charge in building smarter, greener and more connected communities.

The future of real estate 

The future of real estate lies at the intersection of technology and sustainability. By embracing proptech, developers can meet evolving renter expectations while enhancing operational efficiency and reducing environmental impact.

As smart solutions become more widespread, the industry is poised to redefine urban living - creating spaces that are not only innovative but also future-ready.