Micro-location is the process of locating any entity with high accuracy (possibly in centimeters), while geofencing is the process of creating a virtual fence around a so-called Point of Interest (PoI). In this paper, we present an insight into various micro-location enabling technologies and services. We also discuss how these can accelerate the incorporation of Internet of Things (IoT) in smart buildings. We argue that micro-location based location-aware solutions can play a significant role in facilitating the tenants of an IoT equipped smart building. Also, such advanced technologies will enable the smart building control system through minimal actions performed by the tenants. We also highlight the existing and envisioned services to be provided by using micro-location enabling technologies. We describe the challenges and propose some potential solutions such that micro-location enabling technologies and services are thoroughly integrated with IoT equipped smart building.