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Digital Connectivity and commercial building assets

Digital connectivity is a key component of the modern-day business infrastructure and plays a vital part in a company’s ability to grow and prosper. However, companies still face challenges in obtaining good connectivity for their network and ISPs still face massive hurdles in delivering it.

Read Time
3 Minute read
Publish Date
  • David McLeod

Connectivity is a need-to-have rather than a nice-to-have - it is the 4th utility. A business needs connectivity as much as it needs water, gas, and electricity to function. The adage of “location, location, location” is dead. Now more important than incredible transport links when choosing an office space is connectivity. 

Asset management companies and their landlords are adapting to this rapid change quickly and are working tirelessly to improve digital connectivity within their buildings, which Backbone Connect has done with the likes of Schroders, CBRE and Aberdeen Asset Management.

The key driver for landlords is to increase their building’s appeal to not only keep up with their competitors and market disruptors like WeWork but to also increase the value of their assets. A well-connected commercial building has enabled landlords to increase their office rental income by reducing the number of time offices are left unleased, which reflects well on their profit margins. Important figures we have found are that for landlords in London and the South East:

  • Approximately have been able to increase their rent by 10% or more.
  • Another 32% has managed to secure an increase in the rental value of 5%-9.9%.
  • 34% has been able to secure an increase of 2%-4.9% on their rental value.

In monetary terms, this means that landlords can now receive an additional £8.50 per sq ft in prime locations within London the more digitally connected their commercial assets are.

Additional connectivity benefits

  • Good connectivity = better performance

Research has shown a clear link between the level of connectivity and the business performance of tenants within a building. Approximately 81% of occupiers in well-connected offices have reported better business performance. Tenants within a good digitally connected office receive very little to no downtime, which normally disrupts business performance and lowers employee performance.

  • Good connectivity = better satisfaction

An 84% of employees report that they find their jobs more satisfying the better the connectivity within their office. This increase in job satisfaction has helped to increase productivity and enabled employees to be more flexible with how they work, where they work and when they work in the office, common areas within the building and remotely as well.

  • Good connectivity = better professional reputation

Ultimately tenants and their customers want systems that work and communication that keeps things going. Connectivity that disrupts this process diminishes the professional reputation of your tenants. That’s why research has shown that around half of those responsible for digital connectivity in their office are willing to a premium price for being in a better-connected building.

The challenge

Having a better-connected building is a win for both landlords and tenants alike. It makes commercial sense for landlords to invest in connectivity, as it’s an important consideration for choosing or renewing leases.

The challenge is that the industry is still behind, and the learning curve that landlords face on the issue of connectivity is a big one. We plug that gap by bringing the expertise that enables us to provide a well-established solution that is now servicing scores of buildings in London and around the UK. Our robust connectivity through our Connected Building solution is quickly and easily available to all current and potential tenants.

Contact our team today to discover how we can help.

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