Technology has moved on from being a luxury to a necessity. As a society, we now thrive on being constantly connected. In, fact, the average American spends about 24 hours a week online and one in five people spend 40 hours per week connected according to a study done by MIT. So Is your commercial real estate property wired for today’s tech demands?
Commercial investment properties thrive on good returns for investors. So, to maintain happy tenants and reduce vacancy, it is important to give them what they want, use, and need. Considering a large majority (around 80 million people) are Millennials, who grew up with technology in their lives, technology is deemed as a vital necessity — specifically when it comes to connectivity.
The importance of connectivity
In a study done by Radius Global Market Research, it was found that a building’s ability to connect to the internet properly profoundly impacted tenants choices in choosing a property to lease. Location was the only factor that seemed to have a greater impact. Not only that but 79% of tenants are willing to pay a higher rate per square foot, for a more superior connectivity infrastructure and 77% say that would sign a longer lease as well. As 5G looms on the horizon, check into having your building utilized as the home of a 5G cell tower, can ensure you have the fastest speeds possible. That being said, as a landlord, developer, or investor the importance of having a building that is wired for the tech demands of 2019 should be a top priority.
Keep in mind, though connectivity is one of the main priorities when it comes to tech in 2019, there are other advancements that can ensure your property is ahead of the game technologically.
Tech continues to evolve
Smart “tools” such as locks, lights, thermostats, and more all give the tenant a sense of control of the environment they’ve leased. This is especially pertinent if your property is in the multifamily sector. In office sectors adding tech tools such as AI security robots and Bluetooth access credentials will allow tenants to have an optimal sense of security when arriving and leaving work.
Parking garages will also need to get smarter to accommodate the tech advances made in the automotive world. Properties that include smart/electric car chargers, designated spaces for ride-share drop offs, and future autonomous vehicles will show that you are ahead of the curve and looking toward what is to come.
Of course, if you are developing a new building from the ground up it is easy to include these technological elements. However, in an existing building. it is important to go case by case to see what your property can support technologically, and how quickly it can be implemented. It is best to refer to a professional if you have any questions on how you can develop your building to be a frontrunner on the tech scene. Asking a real estate professional can give you knowledgeable insight on what’s comparable and what you can do to make sure your property is ahead in the tech game.