Internet Connectivity Impacts Office Lease Rates
Internet connectivity is crucial for businesses operating in today’s modern world. It therefore comes as no surprise that internet connectivity impacts office lease rates. What factors contribute to connectivity quality? And how can building owners get their infrastructure certified?
Measuring Internet Connectivity
There are different ways to measure the quality of Internet connectivity for a particular location or building. This includes evaluating:
- Number of Internet Service Providers Available
- Distance to Internet Hubs
- Internet Infrastructure
- Types of Internet Connections
- Bandwidth Capacity
- Connection Reliability
- Ease of Connection
The quality of a building’s connectivity includes both hard-wired and wireless connections (given the heavy reliance of cell phones in today’s business world).
There is an international standard for measuring the quality of Internet connectivity in commercial buildings. It’s called Wired Certification. Buildings are rated as anything from Certified to Silver, Gold or Platinum, with the latter being the highest possible rating. Building owners must hire a certification company to perform the necessary assessments that generate a Wired Certification rating for their building.
How Internet Connectivity Impacts Office Lease Rates
In a recent study in Manhattan by a research firm, CoStar Portfolio Strategy, the lease rates for class-B office buildings were compared. The study found that quality Internet connectivity impacts office lease rates. Buildings with Wired Certification received higher lease rates than those without; approximately 6.9% higher or $7.50 more per square foot on average.
Benefits of Wired Certification
By obtaining Wired Certification, commercial office building owners can leverage the quality of their building infrastructure in their marketing efforts. It can also help owners identify potential improvements to achieve even higher ratings.
Internet connectivity is one of many important commercial office building features that can impact office lease rates. Contact ABG Realty for assistance with other pricing factors and office leasing efforts.