Connectivity second only to location in property-leasing decisions

The commercial property sectors in both the US and UK have suffered a torrid time since the Covid-era work-from-home mandates, but signs of the market recovering are beginning to emerge.

A study commissioned by Boldyn Networks has revealed that Wi-Fi and cellular connectivity are now among the most important considerations for business leaders when choosing their next premises.

The study from the neutral host provider was conducted by Lonergan Research, which surveyed 1,011 American and 1,000 UK business leaders. Online surveys were distributed throughout America and the UK ,including both capital city and non-capital city areas, between 31 May and 8 June 2024.

The topline findings of the Location. Location. Connectivity report, said Boldyn Networks, reflected the growing importance of reliable connectivity for commercial tenants with a “staggering number” of business leaders (79% in the US, 77% in the UK) looking to move to a new building in the next five years.  

Boldyn stressed that the report’s findings represent a significant shift compared with the top factors business leaders prioritised when they initially selected their current premises. While location still ranked as the top factor, Wi-Fi connectivity was a close second, followed by cellular connectivity now more important than price and amenities when it came to leasing decisions.

The study noted that the significance of connectivity extends beyond just leasing decisions, also revealing that four in five business leaders surveyed believe that seamless connectivity has a direct impact on employee productivity, with poor connectivity resulting in time wasted each day. Connectivity was regarded as so important to day-to-day operations that nearly every respondent (96% US, 94% UK) said they were willing to pay more in rent to get more robust and reliable connectivity at their premises

The demand for smart building technologies was also on the rise. Boldyn cited a December 2024 fortune business insights report showing the global smart building market was expected to reach $568.02bn by 2032, driven by the need for sustainable, tech-enabled spaces. With real estate responsible for 40% of global carbon emissions, Boldyn said smart technologies – reliant on robust connectivity – will play a crucial role in creating a greener future.

The study showed that nine out of 10 US and UK business leaders agreed that smart building systems would be good for their business and would improve the tenant experience with features such as temperature control, smart apps for facilities management, and sensors for parking and staff traffic becoming essential. Such technologies are seen as key to improving efficiency, reducing operational costs and providing a more comfortable and convenient experience for tenants and staff.

“With the UK driving towards all new buildings being net-zero by 2030, smarter, connected buildings will become a significant way for business leaders to reduce their carbon footprint, optimise energy use and improve operational efficiency,” said Gearoid Collins, commercial director of real estate, enterprise and windfarms for UK & Ireland at Boldyn.

“Employee expectations are changing towards smart and sustainable workplaces. We’re placing great emphasis on ensuring that business connectivity can support new services and applications that will change how we work today and tomorrow.”

Boldyn advised property owners that they need to ensure their buildings are ready to adopt these smart systems to stay competitive and meet the growing demands of their occupants. It added that as companies increasingly adopt AI and other data-intensive technologies, reliable connectivity will become even more critical. To attract and retain tenants, property owners must proactively address their connectivity needs and ensure their buildings are equipped for both current and future demands.

Commenting on the report findings, Boldyn US chief commercial officer Jason Caliento said: “To meet tenants’ connectivity expectations, today’s leading property owners are prioritising network infrastructure. Exceptional connectivity fuels business operations, enhances productivity and boosts employee satisfaction.”