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BCA MEMBER: Diana Rau Siegal, EVO Real Estate Group
BCA CHAPTER: New York NY
The Importance of Technology Infrastructure in Commercial Real Estate
In today’s commercial real estate market, finding the ideal property means far more than finding the right location, size, and lease or sale terms. There’s also tech infrastructure to deal with. As technology continues to infiltrate every single aspect of our lives, it only makes sense that technology would be a focal point in the search for commercial real estate.
From a tenant perspective, finding the right space requires a thorough look at the building’s infrastructure. What are the Internet speeds available in the immediate area? Is the building pre-wired for fiber, phone and other technologies? Is there storage space for servers and other tech hardware?
And, from a building owner or developer standpoint, what can you do to ensure that your building is up-to-par for top-tier tenants that require only the best in tech infrastructure? Do you need to implement Smart Building technology? Is the building fully connected for move-in ready tenants? Will the area’s Internet bandwidth support the types of tenants you’re trying to attract?
It’s clear that hyper-connected businesses are increasingly relying on high-performance networks capable of cloud computing, high-bandwidth applications, and more.
In fact, Mike Maloney, VP of Comcast Business Services, notes that in an online poll where more than 450 building owners and property managers across the country were asked about the importance of advanced communications, 90% said that advanced communications are the fourth most important selling point behind location, price and parking. In high-rise commercial office buildings and with owners/managers of 2 million or more square feet of property, communications capabilities rose to even more importance.
What’s more, more than one-third of respondents say that 75% of negotiations with prospective tenants include topics of advanced communications. This was even higher for respondents who own or manage suburban office buildings.