With the rapid adoption of cloud storage, SaaS products, and hot desking, it’s become more apparent that quality internet connectivity is key to enabling the modern office worker. Because of this, the modern tenant has a far more complex list of requirements when seeking out office space than ever before.
A new report by CoStar Portfolio Strategy has found there are multiple factors beyond location that now determine an office building’s rental value. Internet connectivity is one.
- Buildings with Wired Certification receive higher rent than peer buildings – up to $7.50/ SF in extra rent compared to non-Wired Certified properties.
- As a means of competing for top talent, TAMI tenants are more highly concentrated in buildings with Wired Certification.
- Owners should think about improving internet connectivity as a way of raising rental revenue, particularly in Class B buildings.