WiredScore, an organization that helps landlords, developers and tenants become more digitally connected through its technology and real estate expertise, recently released the results of a connectivity study titled, “The Value of Connectivity: What’s the cost of poor digital infrastructure for Commercial Real Estate?”
The results came from on online survey that Radius Global Market Research conducted on behalf of WiredScore among 150 office tenants that had decision making power when it came to leasing office space or facility locations. Tenants were surveyed in the country’s ten largest Metro markets, including New York City, Los Angeles, Boston, Chicago, Dallas, Philadelphia, San Francisco and Washington, DC.
The survey’s findings revealed a common theme: tenants want to work in buildings that have strong connectivity. While connectivity did not surpass location as decision makers’ top priority, it was close; location ranked first at 90%, but Internet quality was not too far behind at 87%. However, when asked about searching for work space during the next decade, quality of Internet became the top priority (92%) with price and location a close second and third (89% and 88%, respectively.)
Other numbers from the survey that will make commercial real estate owners reassess their building’s connectivity strength include 91% of leasing decision makers said a lack of reliable Internet connectivity would impact their rental decision, and 84% of tenants said they’d be willing to pay more per square foot for a building with better connectivity infrastructure.
Another key finding in the study was how much prospective tenants desire CRE owners to be upfront about their building’s connectivity. For example, 84% of tenants stated they’d pay more for per square foot for their space if the owner could prove their building’s reliable connectivity. Meanwhile, 77% of tenants revealed they’d sign a longer lease in a building that had superior connectivity infrastructure. Those same tenants would also sign a lease more quickly if they could get assurances that a building’s technology infrastructure met the organization’s business requirements.
These findings show the value of Wired Certification, as it provides an in-depth assessment of the property’s digital infrastructure and improvement recommendations to building ownership while and gives tenants the necessary information they need to evaluate a property against their connectivity requirements. In fact, according to study 83% of tenants said they’d feel more confident in the connectivity of a Wired Certified building. Additionally, more than 50% of tenants would limit their search for a new space to Wired Certified buildings. The lesson—the more confident a tenant is in a building’s connectivity ahead of time, the more likely they are to lease space in that building. A Wired Certification can go a long way towards instilling that confidence.
Overall, The Value of Connectivity revealed what’s been known throughout the commercial real estate industry for a while now—technological infrastructure and connectivity are no longer “nice to haves” in a building. They’re now “must haves” for companies looking to lease office space today and going forward.