Want to attract tenants to the office buildings you own, manage or market? The property’s Internet connection matters … a lot.
A new survey by Radius Global Market Research and WiredScore released Oct. 31 found that the quality of a building’s Internet connect was cited by a majority of businesses as a key factor when they are seaerching for new office space. The strength of property’s Internet service ranked higher than a space’s price, according to the survey, The Value of Connectivity: What’s the Cost of Poor Digital Connectivity for Commercial Real Estate?
The survey found that 72 percent of decision-makers reported that it is “extremely critical” for their businesses’ office space to boast a reliable Internet connection. A total of 87 percent of respondents said that Internet connectivity is an important factor in selecting a work environment. What’s most interesting here is that only 82 percent of respondents said that the price of office space was a key factor.
The only factor that ranked higher in the survey than Internet connectivity was the location of office, which 90 percent of respondents said was a key.
When survey participants were asked about selecting a workspace in the next 10 years, they most frequently cited connectivity as an important factor, with 92 percent of respondents saying this was a key factor. That surpassed both location (89 percent) and price (88 percent).
Unfortunately, too many business owners say that their office space’s Internet connection is less than ideal. Respondents reported an average of more than four disruptions in Internet service every month, while 77 percent of respondents said that these disruptions hurt the profitability of their businesses.
“Tenants want an assurance that their building’s infrastructure will meet their connectivity needs in the immediate, but also in the future, regardless of whatever technological leaps are in store for their business down the road,” said Arie Barendrecht, founder and chief executive officer of WiredScore, in a written statement. “Landlords can provide the level of transparency that tenants are seeking though an independent assessment of a building’s technological infrastructure, which we now know increases initial leasing interest and prompts tenants to sign faster and pay more.”
