Why companies are flocking to the newest offices

One part of the problem is the rising requirements for fast internet at a time when the underlying infrastructure remains mostly the same as before.

“Wireless connectivity in office buildings is getting worse and worse, and it will get worse as time goes on,” says JLL’s Technology Infrastructure leader Jason Lund. Much of this, he says, is because of the increased demands of 5G.

Lund says to think about a signal strength like an oasis in a desert. There is this big pool of water, and as more animals come to drink, the faster it dries out. Eventually, it doesn’t meet the capacity of all the animals.

“Tenants are coming into buildings now post COVID-19, and they’re operating very differently than they used to, and it’s putting much greater strain on existing broadcast technologies in buildings,” Lund says. “You have to update and expand the entire system to make it capable of handling all those devises.”

JLL’s research shows the flight to quality is being driven by outsized leasing in new construction.

Although concessions are expected to remain elevated compared to historical norms, JLL expects effective rents to continue to rise in new products, while second-generation assets will need larger concession packages to stay operative.

“There’s real value to investing in smart technology and the infrastructure that supports it,” says Lund. “If you don’t, your building will be last on the office tour, if it’s even on the list at all.”

Click here to learn more about how you can elevate your asset.