Decision-making in real estate has historically depended on one factor above all else: location (location, location). Even with the advent of over-the-top amenities, elevated interior designs, and reconfigured work environments, a building’s location has long remained the chief determinant of its leasing success. According to WiredScore’s survey of leasing decision makers (tenants) across the United States, location is still king, but not by much, and perhaps not for long.
As outlined in a new report from Radius Global Market Research and WiredScore, The Value of Connectivity, the quality of a building’s internet connection (87%) was edged only slightly by its location (90%) as factors when choosing an office location today. That means that, in a business world that is more connected by the day – through communications platforms, cloud-based systems, and smart technologies – internet quality is becoming a greater consideration than factors like price, environmental friendliness, or access to transportation.
Tenants agree that leasing would be easier and they would sign more quickly if they had comprehensive information about a building's technology infrastructure upfront.
As the results demonstrate, quality internet cannot be taken for granted: tenants surveyed experience an average of 4.3 connectivity issues every month. The research reveals that a majority of tenants (80%) feel that the leasing process would be easier if they had comprehensive information about a building’s technological infrastructure upfront. And, if an owner could prove a building’s reliable connectivity, four out of five tenants (84%) would pay more per square foot for their space.
Key highlights from leasing decision-makers in The Value of Connectivity:
- 91% say that a lack of reliable internet connectivity would affect their rental decision
- 63% say it is difficult to get critical information about connectivity during contract negotiations
- 79% would prefer leasing office space in a Wired Certified office building
Universally, the message from tenants is clear: technological infrastructure and connectivity are far from afterthoughts -- they're priorities for companies seeking office space now and in the future.