Today commercial real estate faces an unusual challenge: increase occupancy and profitability when many tenants organizations are reducing office space requirements. Many have an increasingly distributed workforce working from their homes. One good strategy is to innovate for occupancy. Provide tenants the technology they need on a fractional managed model while differentiating yourself from everyone else.
So how can a new or existing office building differentiate itself? It’s no longer just “Location, Location, Location”. It’s about adding value, generating additional service revenue opportunities, and giving tenants the resources they need to conduct business the way they want on the faster move in schedules property managers desire. We’ve worked with clients faced with this dilemma and they have been able to grow their occupancy rates by investing in technology to differentiate themselves with:
- reliable high speed internet
- pre-configured voice systems
- Data Center services for cloud computing, data protection and a secure location to house existing IT infrastructure
- access to IT support services.
High speed internet is first step. Once a reliable high speed internet delivery network is in place, then additional benefits can be layered in over a secure, managed network infrastructure. This network can be managed internally, or as we have typically done it, outsources as a managed IT service. That enables the property owner to have predictable management expense with little or no additional IT staff.
The Network Is Just the Beginning
Once the network infrastructure is in place, additional services can be added. Starting with phone service. Voice systems are now part of the data network. (What used to be called Voice Over Internet Protocol or VOIP.) No more extra cabling and duplicate systems to manage. Communication systems have broadened from telephone service to a group of related services called Unified Communications.
Unified Communications provides voice, video conferencing, and text-driven collaboration applications. These services are in high demand; yet typically not included as part of many properties’ offering. Many tenants don’t want to make these decisions or experience the delay in ordering service. Often if services are provided as part of the package, they are willing to pay a premium to avoid the hassle.
Gain More Control
The ability to automate and merge HVAC, lighting and other energy management services into this network provides the ability to control energy costs and manage multiple properties from one location. This solution allows for the reduction of construction and ongoing building management expenses, as well as offering ease of future space reconfiguration.
We have seen innovation investment take struggling properties to market leaders. Technology makes a property stand out to attract and retain “A” level tenants; and in doing so enhances real estate values and occupancy rates, along with offering the opportunity to incorporate value added services. It changes the old reliance on “square foot real estate” and standard services in the evaluation of your property.
Instead it changes the paradigm of “Location, Location, Location” to “Location, Bandwidth, and Services”. It can provide a clear competitive edge for those who are willing to leverage technology as a strategic business strategy: from operations management to tenant recruitment and tenure.
Building or renovating rental property? We can give you the edge you want.
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Don’t just take our word for it. Here’s one of our prior projects!