Commercial vacancy rates are increasing in the U.S. To attract new tenants and keep your current clientele interested in staying with your property, upgrade to 10 Gbps dedicated internet with top-of-the-line features. Read on to learn how you can adapt to challenging new interest rates and increasing insurance premiums.
Make your buildings more attractive for potential tenants with a multi-service provider
Conditions are tough for commercial real-estate owners right now because of extremely high-interest premiums and reduced enthusiasm in office space thanks to the rise in remote work.
Commercial real-estate borrowing is expected to fall 5% in 2023 compared to 2022, according to estimates by the Mortgage Bankers Association as cited by the Wall Street Journal. Nearly one-third of all commercial property debt is floating rate.
Interest rates are climbing dramatically to combat inflation. Consequently, insurance premiums have skyrocketed.
In 2022, real-estate owners had limited exposure to rising interest rates thanks to interest rate caps. But that protection has expired, and those same real-estate owners are paying 10 times the previous rate of one year ago. Consequently, tenants can end up paying more in rental income than they do on insurance.
With such low interest in renting combined with rising rental rates, real-estate owners need to offer incentives to keep demand high. One solution is to offer a sophisticated connectivity solution that goes beyond fast internet but delivers on key requirements of modern organizations like unified communications, 10 Gbps dedicated internet, comprehensive cybersecurity solutions and premium network services.
Keeping your building at this level of internet service can attract higher-profile tenants who have an equally high-profile demand for reliable and secure internet. This is especially important if you’re in an area that doesn’t have fiber installed yet. With high-speed internet installed in your buildings, you can increase rent and provide attractive new amenities to tenants.
What tenants are looking for in office spaces
Offering low rent and a good location are no longer the only ways to entice tenants looking for office space. Tenants are looking for flexibility, i.e., a place to grow their business, according to a report by the CCIM Institute.
This refers to several qualities in a building, such as the space needed to expand. It also means offering high-speed internet that can be quickly upgraded to meet the needs of those businesses no matter how large they become. Tenants don’t just pay for what they need now — they pay to future-proof their business as well.
The benefits for your property of a solid internet provider
When businesses sign up for office space, they expect not just a fast connection, but reliable internet. In the event of an outage, your tenants’ ability to work immediately halts. It follows that the quality of their internet connection is one of the first things they’ll think about if they’re considering a rental space. In addition, route diversity inherent to SD-WAN maximizes their redundancy potential.
The rise of remote work may be contributing to lessening demand for office spaces in general, but that doesn’t mean it has to work against you. Many businesses have remote clients that they need to contact from within the office, and that requires a stable internet connection.
Tenants also want top-of-the-line cybersecurity built into their connection. You might be inclined to think that cybercrime looks at the largest targets: big corporations, governments, etc. However, cybercriminals are often just looking for the most vulnerable. Small businesses are some of the highest-value targets, as they simply don’t have proper defenses against cyberattacks. This means that 43% of cyberattacks target small businesses, according to Fundera. A data breach can be devastating to a business, eroding its customers’ trust and costing large amounts of money to resolve.
The importance of investing in a multi-service network
Route diversity is vital for your tenants. They want maximum redundancy, even if there’s already fiber installed in the building. Having a ground-up solution such as fiber in combination with a roof-down technology such as fixed wireless access (FWA) means even if one connection goes down, they’ll always have a backup.
Tenants want high levels of uptime and premium service. Multi-service networks help you make those guarantees. With a multi-service network, tenants can reduce downtime, secure the network more effectively and do away with plain old telephone service (POTS) lines completely.
With a multi-service provider, tenants can freely choose which type of connection they want to use. For example, if the building supports it and they want to use fiber, they can. If they prefer 5G, that’s an option, too. A multi-service provider offers tenants the flexibility to choose which type of service they want to use.
Working with WiLine can help you get your building into shape and help attract new tenants. Built with fast installation, multi-point redundancy, a mesh network and ultra-high bandwidth. We back all of it with a comprehensive SLA. WiLine is a multi-service provider that provides a range of features, from DIA to SD-WAN to comprehensive cybersecurity and more.
WiLine provides building owners with a certificate of insurance (COI), and blueprints prior to installation where all WiLine equipment is installed. Your tenants won’t even lose their connection if there’s a blackout with an uninterruptible power supply (UPS) battery backup. The UPS is solar-powered, meaning even in the event of a power outage, your tenants will still be able to work.
WiLine adheres to all building codes and state and city regulations without altering the structural integrity of the building. Installations are free — and they only take a few days, not months.
We also offer route diversity, ensuring your connection stays online even if your primary connection fails. Note that route diversity is not the same thing as carrier diversity. The latter refers to having multiple ISPs, whereas the former regards having redundant types of connections. Route diversity is superior because carriers share conduits within the building, which only provides the illusion of true redundancy. If the connection fails, then having multiple carriers will be of no use, as all conduits will go down at the same time.
Invest in a superior multi-service network for maximum value
Fast, secure internet is in high demand for office tenants. When tenants are shopping for office space, they’ll want uninterrupted, safe access to it.
At WiLine, we’re here to help you find a superior internet solution. Contact us today to learn more.