The Value of Connectivity in Buildings

We interviewed Richard Morris, Sales and Marketing Director of Technology within. He's a PropTech expert and thought-leader within IT connectivity. Technology within IT enables flexible and co-working space with WiFi, superfast internet and workspace management software. 

If you'd prefer, you can listen to the interview in full on our podcast.

We're all aware of the importance of the convergence between IT and OT systems and connectivity throughout buildings to make them smart, efficient, and environmentally positive. So, we asked Richard, what is the value of connectivity in buildings?

In your opinion, how has the commercial real estate market evolved in the past two years?

I think it's fair to say there's been a number of changes. First of all, for obvious reasons, many of us have been working from home. So, companies have had to adapt; technology has played a very important part. Without technology such as Zoom and Teams, we would have struggled to operate many businesses and communicate with employees and customers. 

To a large extent, commercial office spaces have been deserted for a long period of the last couple of years. I think landlords have had to adapt; they've had to be more flexible and accommodate customer's requirements. In some instances, businesses that have long leases have sublet space; this is something we call 'grey space'.

There have also been huge social changes in terms of attitudes; working from home/remotely was previously seen as 'slacking off', but I think we've all seen over the past two years that actually you can be just as productive, and people's quality of life has improved. So, I don't think people will be willing to go back to the office full-time. Hybrid working is definitely the way forward. 

80% of buildings in use in 2050 have already been built. So, they're not going to go away; we need to make sure that we use them to their full potential. Do you think that landlords and owners feel pressure to ensure their buildings remain attractive to tenants? 

I absolutely do; we have seen this almost accelerate in the last couple of years. Landlords are prioritising connectivity in buildings now. 

But they're also looking at space design. A lot of offices now have gyms, breakout areas, comfy seating; it's not the office space that it was many years ago; it's all about making the space more enjoyable for occupants. They're almost emulating the hotel sector, merging with hospitality and customer service, having a much bigger focus on wellbeing. 

What is the role of connectivity in allowing owners and landlords to charge higher rent prices but also prevent void periods? 

The internet really is a utility these days. It's fair to say that if you don't have a good internet connection in your office space, then it's going to be very difficult to operate your business. 

Much of the time, when people think of the internet and WiFi in terms of a work scenario, it's assumed it's for your laptop/PC, but we're living in a world now, where not only our homes are becoming smarter, but our workplaces are too. We've got so many IoT devices, so it really is important to have that stable connectivity. Otherwise, it can stop all sorts of operations. 

These devices/systems range from door entry systems, smart TVs, smart lighting, etc. and sensors that track people around a building, and they can actually sense whether rooms need to be cleaned. There are lots of interesting things going on, and it's all reliant on internet connectivity at the core of the building. 

In turn, this connectivity facilitates saving energy because you've got sensors that are monitoring energy usage and energy wastage and providing these insights for facility and building managers to view. It also creates safer workplaces through access control, cleaning schedules, etc.

Is certification helping to increase building value? 

Wiredscore certifies buildings, rating them based on their digital connectivity. Buildings can receive a platinum, gold or silver accreditation, showing how robust and resilient the connectivity is.

We've had feedback that it's a reasonably expensive exercise to go down from a landlord or a developer's point of view. They have to renew the accreditation every couple of years, so there is an ongoing process, but in a way, this is good because it ensures the standard is maintained. 

It has also been reported that in London, Wiredscore certified buildings were able to charge a 5% digital premium on their space, which is a decent chunk, especially in such a competitive environment. Ultimately it can make that building more marketable for prospective tenants by following good processes and having an accreditation. There are also a number of other organisations that offer a similar service, not just Wiredscore. 

How else can connectivity drive value through buildings, aside from the obvious monetary value? 

I think that connectivity offers great marketability; it helps the brokers and agents to sell office space. It gives a competitive edge; if a building next door doesn't have good connectivity, but your building does, then as a prospective tenant, you're more likely to take that space. It's all about improving the desirability of a space. 

There's also cost savings for tenants because of economies of scale; if there's a multi-tenant building, you can share the internet bandwidth amongst a number of clients and the landlord benefit because tenants can move in quicker.

Connectivity is also the foundation of a smart building; it allows a lot of the technology we have discussed to be installed and used effectively, contributing towards energy savings, environmental impact, and making sure that everything in a building is connected and all of your systems and devices work together, which is essential as we move forward in this digitally connected world.