Why securing commercial tenants calls for the “fourth utility”

COMMENT In testing economic times, it is more important than ever for landlords to attract and retain commercial tenants by installing the so-called “fourth utility” of high-speed fibre. Although connectivity obviously remains key in our digital age, it is truly remarkable that high-speed fibre is still not provided by many landlords as standard practice – and with no legal requirement for them to do so – to make their building smarter and more attractive to business occupiers and to increase its value as a commercial real estate asset. Despite businesses making connectivity one of their top requirements, alongside cost and location, office buildings throughout the UK – including in major cities such as Manchester, Leeds, Birmingham and Glasgow – still don’t provide it, increasing the chances of a landlord losing a potential tenant to a rival location that does. Bandwidth is a no brainer If a landlord doesn’t pre-connect a multi-tenanted office building prior to occupation, ideally at the design stage, any incoming business excited by the prospect of a new home for their operation might instead endure a costly, lengthy and complex installation experience that could have been avoided. Internet connectivity has become as essential to a business as oxygen – it needs it not only to survive but to thrive. It is a no brainer for forward-thinking landlords to maximise the appeal of their available space to potential business tenants wanting to be up and running from day one by pre-installing high speed fibre. Landlords of multi-tenanted properties must realise that occupiers regard the internet as of equal importance to the other utilities of gas, electricity and water, and expect to connect immediately. As economic conditions continue to tighten and business costs soar, increasingly cost-conscious businesses place even more importance on value for money, flexibility and a progressive landlord who understands their needs to provide a positive tenant experience. An ultra-fast internet connection that’s ready and waiting for incoming commercial tenants allows them to move in once their contract is signed, meaning that move-in dates will no longer be impacted by delayed internet installation. Going the extra mile A cost-effective way for a landlord to ensure instant access to high-speed broadband in multi-tenanted commercial premises is to work with a telecoms service provider to use whatever internal infrastructure is already installed, saving on the expense of the provider installing new cabling and avoiding unnecessary mess and exposed cables. Another major cost-cutting benefit for any incoming tenant wanting to avoid a bottleneck is for the landlord and telecoms provider to sign a wayleave agreement, where the landlord gives the provider a licence to access land and/or property to install and/or maintain communications equipment. Having a wayleave agreement in place removes a potentially costly process for each new tenant in a commercial property. Innovative telecoms providers will go the extra mile to meet the needs of landlords and their tenants by also: Phasing the installation to increase capacity as demand from tenants increases. Committing to a fixed price through any contract period – many providers start with a low price which automatically rises after the initial offer period expires. Providing the tenant with the flexibility to change their package by, for example, adding telecom services and increasing internet speed. Delivering 24-hour fast and friendly customer service. Ultimately, there are numerous benefits to any landlord working with a service provider to offer tenants a building pre-fitted with high-speed fibre, including future proofing your assets, attracting and retaining tenants, reducing void periods, enhancing investment value, and delivering an efficient and speedy tenant onboarding process. All of which will provide a landlord with happy tenants in an office building boasting business-grade digital infrastructure capable of meeting the demands of any bandwidth-heavy business within just 24 hours of completing the lease. Chaim Grunfeld is managing director of Prime Connect Photo @ Prime Connect