Connectivity in Commercial Real Estate

Jan. 14, 2025 /Mpelembe Media/ —  A Boldyn Networks study highlights the increasing importance of robust Wi-Fi and cellular connectivity in commercial real estate. This surpasses price and amenities as a key factor for businesses choosing office space, with a significant majority willing to pay more for reliable connectivity. The report also emphasizes the link between seamless connectivity and improved employee productivity, alongside the growing demand for smart building technologies to enhance tenant experience and sustainability. This trend reflects the broader shift towards tech-enabled and environmentally conscious workplaces.

Connectivity is now a top priority for businesses when selecting commercial real estate, and it is impacting leasing decisions.

Here’s how connectivity is influencing these decisions:

Connectivity ranks highly: While location is still the top factor, Wi-Fi connectivity is a close second, followed by cellular connectivity.

More important than price and amenities: Connectivity now outranks price and amenities when businesses make leasing decisions for office space.

Impact on employee productivity: Four in five business leaders believe that seamless connectivity has a direct impact on employee productivity.

Willingness to pay more: Nearly every respondent (96% in the US and 94% in the UK) said they’re willing to pay more in rent for more robust and reliable connectivity.

Smart building technologies are in demand: Nine out of ten business leaders in the US and UK agree that smart building systems would be beneficial for their business and improve the tenant experience.

Driving smart building growth: The global smart building market is expected to reach $568.02 billion by 2032, as businesses seek sustainable and tech-enabled spaces that rely on robust connectivity.

Supports new services: Businesses are placing great emphasis on ensuring that their connectivity can support new services and applications that will change how we work.

These findings show that reliable connectivity is crucial for commercial tenants and that property owners are prioritizing network infrastructure to meet these expectations.

A significant number of business leaders are considering a move to new premises within the next five years. Specifically, 79% of business leaders in the US and 77% in the UK are looking to relocate within this timeframe. This high percentage reflects the growing importance of reliable connectivity for commercial tenants.

Several factors influence commercial real estate leasing decisions, with connectivity emerging as a top priority. Here’s a breakdown of the key elements:

Location:

While still considered the top factor, location is closely followed by other considerations.

Connectivity:

Wi-Fi Connectivity is a close second to location in importance when making leasing decisions.

Cellular connectivity is also a key factor for businesses.

Connectivity now outranks price and amenities when businesses make decisions about leasing office space.

Price and Amenities:

While these were traditionally important factors, they now rank below connectivity in the decision-making process.

Employee productivity:

Business leaders believe that seamless connectivity has a direct impact on employee productivity.

Smart Building Technologies:

There is a high demand for smart building systems, with nine out of ten business leaders in the US and UK agreeing that these systems would be beneficial and improve tenant experience.

The global smart building market is projected to reach $568.02 billion by 2032, driven by the need for sustainable, tech-enabled spaces.

Willingness to Pay More:

Businesses are willing to pay more in rent for better connectivity, with 96% of US and 94% of UK respondents saying they would pay more for robust and reliable connectivity.

New Services and Applications:

Businesses are placing emphasis on ensuring that their connectivity can support new services and applications that will change how they work.

While location remains a primary concern, reliable connectivity, encompassing both Wi-Fi and cellular, has become a critical factor that businesses consider when making leasing decisions, often outweighing traditional factors like price and amenities. Additionally, businesses are increasingly interested in smart building technologies and are willing to pay more for better connectivity.

Robust connectivity has a significant impact on employee productivity, according to the sources. Here’s a breakdown of how it affects businesses:

Direct Impact: Four in five business leaders surveyed believe that seamless connectivity has a direct impact on employee productivity. This demonstrates a strong correlation between reliable connectivity and the efficiency of employees within a business.

Prioritisation of Connectivity: Businesses are now prioritising robust and reliable connectivity as it has become essential for day-to-day operations.

Willingness to Pay More: The importance of connectivity is further highlighted by the fact that nearly every respondent (96% in the US and 94% in the UK) stated they are willing to pay more in rent to get better connectivity. This indicates that businesses recognise the value of connectivity in enabling employees to work effectively and efficiently.

Demand for Smart Buildings: The demand for smart building technologies is also rising, as nine out of ten business leaders agree that these systems would be good for their business and improve the tenant experience. These smart systems often rely on robust connectivity to function effectively, further underlining its importance to employee productivity and satisfaction.

The sources indicate that robust connectivity is considered a key factor in enhancing employee productivity, with many businesses willing to invest more to ensure reliable and seamless connections. This reflects the growing understanding that connectivity is not just a convenience, but a fundamental requirement for efficient operations and a productive workforce.