What amenity can a building owner or property management firm add to a building to eliminate 90% of their competition in today’s commercial real estate market? The answer: Broadband Connectivity.
This is not hype. This is not conceptual or theoretical. It is fact.
In performing research for a planning project I worked on while consulting to the DuPage Business Center, an 800-acre high-tech business park in Illinois, I found that searching for Class A space (20,000 square feet) in the surrounding area came up with a total of 60 available properties.
With that many properties offering space, it would be an easy time to get them to compete on price until the price per square foot was driven down to a very low amount. With owners hungry for a tenant, we could probably negotiate a year free on a five-year lease.
As soon as I added Broadband Connectivity (multiple gigabit speeds) to the upfront requirements for the tenant space, the amount of buildings available with that amenity dropped to five. That is over a 90% reduction in the amount of buildings available that could handle that type of request.
In that scenario, the building owner would not have to sacrifice dropping the price per square foot and could focus on more unique strengths of the property. End result: The property owner keeps up the profitability of the building and attracts the premium tenants.
20th CENTURY REAL ESTATE SOLUTIONS CANNOT SOLVE 21st CENTURY TENANT ISSUES
Hear that huge shattering sound of glass, steel and marble crashing down to the ground? That is the shattering of decades’ worth of commercial real estate concepts that don’t work anymore.
The sad part is many in the Commercial Real Estate (CRE) market need to tune into this deafening thunder. The status quo has been shattered and shattered again by the implementation of WiFi. DAS and Smartphone networks into many venues. Commercial real estate needs to offer what was before a hoped for, that has become a “must-have”.
As I said in an earlier article: (http://onpurposemagazine.com/2013/02/20/defining-21st-century-real-estate-2/ )
Selling products and services into this 21st century integrated real estate environment requires an expertise in understanding multi-disciplinary skills and next-generation solutions. It is a multi-level sell when trying to promote new intelligent amenities for next-generation buildings, multi-venue entertainment centers, and intelligent business campuses.
Part of my book, Location Location Connectivity, deals with changing out Master Planning concepts. Areas of concern like power and network infrastructure services have become something to be added to the upfront planning of the property and not as some after-thought once the tenant signs the contract.
The reality is the tenant is NOT going to sign any contract unless these amenities are already present and available. When it comes to Master Planning, both power and network services have to be implemented upfront before any tenant will buy into the property.
WHAT IS IMPORTANT?
If you are into property management or ownership of Class A Buildings, do you want to eliminate the vast majority of your competition in today’s commercial real estate market? Start taking a look at implementing intelligent amenities before potential tenants require them and you have to do things in a crisis mode.
CARLINI-ISM: “When it comes to commercial real estate, those stuck with 20th century solutions will not be able to attract and maintain 21st century tenants.”
Carlini’s visionary book, Location Location Connectivity is available at Barnes & Noble. (The ISBN # 9780-9906460-44)
Copyright 2014 – James Carlini – All rights reserved