Landlords need to enhance the digital connectivity of their buildings to meet the evolving expectations of a modern workforce. In doing so, they will open the doors to better occupier retention, lower vacancy rates and the opportunity to charge higher rent.
This remarkable insight is the result of collaborative research undertaken by Moody’s Analytics CRE and WiredScore in cities across the US. As the region moves to hybrid and flexible working, companies are reassessing what they value in a workplace. With the office changing from strictly a place of work, to a space for gatherings and collaboration, the overall quality of the building has risen up a tenant’s priority list. This includes an expectation that the building in question is supported by the latest technologies. In response, a number of buildings were surveyed to assess the impact a WiredScore certification has on occupancy rates, lease length and rent.
The importance of recognizing buildings which actively prioritize their connectivity is clear. When comparing buildings that do and do not have a WiredScore certification, it was found that vacancy is, on average, 3.8% lower for a certified building. Certified buildings can also support higher rents as they deliver best-in-class digital connectivity and technologically enabled experience. This was most notably seen in New York, where certified properties are now commanding a 2.7% uplift in rent versus non-certified properties. In addition, Class B and C buildings which hold a WiredScore certification are able to stand out from their counterparts. This supports them in a market where Class A buildings are seen as the modern-ideal, while B/C buildings lag behind.