By Brent Protzman, Ph.D., Director of Product Management for Commercial Shades, Lutron Electronics
The commercial real estate market today looks very different than five years ago. As the occupancy rates that dipped during the pandemic rise again, property owners are discovering that tenants want sustainable and efficient spaces, as well as an amenity-rich and welcoming office environment for occupants. Well-being, productivity, and comfort are top of mind, and these expectations are driving investment in smart lighting systems, dynamic shade control, and WELL building certifications.
The numbers tell a compelling story—amenities are valuable differentiators. Research from the global real estate company JLL reveals that companies offering a diverse range of amenities, including those that support wellness initiatives, will experience 12 percent higher tenant demand than their counterparts with standard offerings.
Managing Daylight is a Strategic Advantage
One notable shift is how daylight is managed and distributed. For years, manual shades were the standard in most commercial spaces. The reality is that manual shades are often difficult to operate, have tangled or broken cords, and don’t work to enhance workspace design. As a result, they are frequently only lowered once or closed completely to mitigate glare and rarely opened again to take advantage of daylight and views. This renders those shades ineffective and creates an unfinished aesthetic, particularly from the exterior of the building.
According to Market Research Future, the automated shading system market is expected to grow from $20.59 billion in 2024 to $41.66 billion by 2032, driven in part by building owners who recognize that effective daylight management represents both an operational necessity and a strategic advantage.
Smart, automated shading systems go well beyond just blocking the sun. These platforms use solar positioning algorithms to prevent disruptive workplace glare—which remains among the most common employee workplace complaints—and still provide desired access to daylight and views. In best-case scenarios, shade and lighting control systems integrate seamlessly to ensure that when daylight is sufficient, electric lights are dimmed or even turned off to save energy and boost sustainability.
The result is a more sustainable, energy-efficient, and cost-effective space that’s bright, welcoming, and appealing to employees looking for a workspace with some of the familiar comforts of home. In a competitive real estate environment, these differentiated features can be a strategic win.
This transformation is showcased in BlackRock’s Manhattan headquarters, where the global investment firm consolidated 4,000 employees from three separate offices into a single, one-million-square-foot space. “Daylight is really important. But bringing in daylight and allowing that daylight to penetrate all the way deep into the floors so that everyone has access to natural light was very important,” explains Barry Novick, Technology Strategy at BlackRock. The company’s approach, which they call “democratizing daylight,” ensures that whether employees have window seats or work in interior spaces, everyone benefits from natural light that feels authentic throughout the day.
Top image: Automated shading systems allow employees to enjoy daylight and views. Credit: Eric Laignel, courtesy of Lutron.
Image: Automated Lutron shades at BlackRock’s Manhattan office preserve city views while minimizing glare. Credit: Eric Laignel, courtesy of Lutron
Extending Daylight Reach with Tunable White Lighting
Increasingly, the commercial market understands that employee satisfaction impacts business outcomes and may affect recruitment and retention in today’s talent market. Buildings equipped with comprehensive environmental controls report measurably better occupant experiences. Working in a space with ample access to daylight and tunable white lighting creates a connection to the outdoors, making the office feel more like a natural environment.
The BlackRock installation demonstrates how automated shades work in tandem with smart lighting control systems to make a space feel natural and comfortable. Shades on all windows adjust automatically over the day. At the same time, tunable white lighting systems complement natural light cycles by automatically and unobtrusively adjusting color temperature and intensity.
Typically, workplace lighting is warmer in the early morning hours and becomes progressively brighter and cooler as employees arrive, peaking between 9 and 10 a.m. to energize employees and promote alertness. The color temperature generally remains steady until mid-afternoon, while intensity adjusts in response to occupancy and daylight levels. In the mid-to-late afternoon, the color temperature starts to warm up again, and intensity dims as employees wind down for the day and head home.
The Business Case for Smarter Daylight Harvesting
From an energy perspective, integrated lighting and shading systems contribute to measurable reductions in total building energy consumption. Automated shades significantly reduce HVAC loads by blocking unwanted solar heat gain during peak cooling periods while maximizing passive solar heating when beneficial. When coordinated with daylight-responsive lighting controls, these systems minimize electric lighting requirements during peak daylight hours.
For the retrofit market, wireless systems and luminaire-level lighting controls offer the advanced performance of lighting control solutions without having to tear open walls or rewire fixtures. For new construction, integrated systems can be designed from the ground up to optimize performance and cost-effectiveness, and enhance the resale or lease value if needs change. The key is to view lighting and shading as a single integrated platform rather than separate systems.
Wellness and Sustainability – Real Estate Differentiators
The convergence of innovative building technology, green-building certifications, and sustainability programs represents powerful differentiators. In particular, the WELL Building Standard has seen explosive growth in recent years. Since the launch of WELL in 2014, thousands of companies, including more than 20 percent of the Fortune 500, have adopted WELL as an evidence-based roadmap for applying health strategies.
Achieving WELL certification almost always requires robust lighting and shading systems. Automated systems significantly increase the potential for points earned compared to manual alternatives, making them particularly attractive for projects pursuing certification.
For lighting designers and facility managers, the challenge is no longer whether to implement smart, sustainable lighting and shading technologies but how to design integrated systems that deliver measurable performance improvements with the power to adapt over time.
Image: Integrated lighting and shading systems helped Lutron achieve WELL platinum certification at their Global Experience center. Credit: Courtesy of Lutron
ABOUT THE AUTHOR
Brent Protzman is the Director of Product Management for Commercial Shades at Lutron Electronics, where he focuses on expanding the use of smart shading to improve building comfort and sustainability. His education and expertise contribute to a unique understanding of the interactions between human-centric design, operational efficiency, and sustainability.
Brent earned his Ph.D. in Architectural Engineering from the University of Nebraska and is a former professor of Building Systems at the University of Colorado. He has served on numerous industry boards, including the wireless mesh networking protocol Thread, the Light Concept advisory of the WELL Building Standard, and the Attachment Energy Ratings Council (AERC).
Image: Brent Protzman, Ph.D., Director of Product Management for Commercial Shades, Lutron Electronics
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