by Rob Murchison

When we think of buildings, we often picture the tangible—the walls, the windows, the spaces where tenants work, live, and thrive.

But how often do we consider the systems behind the scenes—the ones that connect, protect, and sustain these spaces?

Could it be that the most valuable part of your building isn’t visible but instead powers its future?

In our last three posts, we explored how water, gas, and electricity revolutionized commercial real estate (CRE), reshaping the industry and redefining what buildings could achieve. Each utility became essential for operations and tenant satisfaction. But now, traditional utilities alone aren’t enough. How can your property stay competitive and meet modern demands? The answer lies in digital infrastructure.

THE EVOLUTION OF DIGITAL INFRASTRUCTURE: FROM FEATURE TO NECESSITY

For decades, commercial buildings have been designed with physical utilities like water, gas, and electricity in mind. Digital infrastructure, however, is often an afterthought—an optional feature rather than a core component. That mindset began to shift as early digital systems showed their potential to streamline operations and enhance tenant experiences.

In the 1980s, the introduction of computerized Building Management Systems (BMS) allowed for centralized control of HVAC and lighting systems, revolutionizing operational efficiency. By the late 1990s, the growing reliance on internet connectivity transformed tenant expectations. In concept, reliable networks became as critical as running water for modern buildings, and due to the complexity of CRE tech, owners and operators had to rethink how they approached the digital systems in their properties.

Fast-forward to today and the demands have grown exponentially. The rise of IoT devices, cloud-based systems, and real-time analytics has made digital infrastructure the backbone of modern building operations. Tenants no longer ask for connectivity—they assume it. Yet, despite its importance, many owners and operators continue to treat digital infrastructure differently from other utilities.

WHY WOULD OWNERS RELINQUISH CONTROL OF DIGITAL INFRASTRUCTURE?

Here’s a question worth reflecting on:

Would you ever give away control of your building’s water, gas, or electricity to an outside provider in exchange for short-term savings?

Probably not. Yet, this is exactly what happens with digital infrastructure in many cases.

There are several reasons for this disconnect:

• Historical Practices: Digital infrastructure has long been seen as a tenant amenity, often provided by external service providers rather than integrated into the building’s core operations.
• Cost Avoidance: Service providers often offer to install and manage digital infrastructure at no cost, making it tempting for owners to offload the responsibility.
• Complexity: Managing digital systems requires specialized expertise that owners may lack in-house, leading to a preference for outsourcing.
• Undervaluing Its Strategic Importance: Unlike traditional utilities, digital infrastructure hasn’t been fully recognized as a driver of building value, tenant satisfaction, and operational efficiency.

However, this approach has significant consequences. By giving up control, owners miss revenue opportunities, restrict their flexibility, limit options to reduce operational costs, and expose their buildings to potential security risks.

IT’S TIME TO RETHINK DIGITAL INFRASTRUCTURE

Digital systems have evolved from conveniences to essential utilities, but they’ve never been managed with the same care or standardization as water or electricity. Why?

Because the concept of digital infrastructure as a utility is still emerging. Yet the parallels are clear: just as buildings rely on water to flow seamlessly to every faucet and electricity to power every outlet, they now depend on digital systems to connect every device, process, and person within them.

By retaining control of digital infrastructure, building owners can:

• Enhance Tenant Satisfaction: Provide seamless connectivity, smart amenities, and cyber-secure environments where technology is simple and convenient.
• Capture New Revenue Streams: Monetize digital services and data-driven insights rather than leaving profits to external providers.
• Increase Property Value: Buildings designed for the future with flexible, reliable infrastructure that meets tenant and market demands, ultimately increasing NOI.

WHY DIGITAL INFRASTRUCTURE MATTERS NOW

How much of your building’s future potential depends on the systems managing it today?

Modern buildings rely on IoT devices, automated HVAC, and smart physical access control—no longer optional but essential systems. Yet, without proper management, these technologies can feel like a burden instead of a benefit.

What if your systems worked together seamlessly instead of competing for attention and resources?

Tenants are raising the bar with expectations for seamless connectivity, smart amenities, and environmentally responsible spaces. Owners and operators face rising energy costs, stricter regulations, and sustainability goals.

Are your buildings equipped to meet these demands while remaining cost-effective and efficient?

AN OPPORTUNITY IN PROPER CRE TECH MANAGEMENT

What could your property achieve if all its systems worked in harmony? When digital infrastructure is adequately managed, CRE tech becomes a solution rather than a challenge.

Consider the possibilities:

• Operational Simplicity: How much time and money could you save by reducing redundancies, improving reliability, and gaining actionable data for better decisions?
• Economic Value: Could proactive maintenance and optimized energy use turn inefficiencies into opportunities to reduce expenses and boost your bottom line?
• Sustainability Gains: What if you could meet ESG (Environmental, Social, Governance) priorities while reducing waste and managing resources more efficiently?
• Future-Ready Buildings: Are your buildings prepared for Private LTE, AI-driven analytics, and advanced automation? The right infrastructure makes this transition seamless.

COLLABORATING FOR SUCCESS

Who will drive this transformation? Owners and operators are key to designing and maintaining systems that ensure buildings are connected, protected, and optimized. Tenants, meanwhile, benefit directly from these advancements—secure, comfortable, and productive environments that meet their evolving needs.

WHY THE TIME IS NOW

If not now, when? Digital infrastructure is not just a passing trend; it is the foundation for how buildings will operate now and in the future. Acting now will help your property stand out in a competitive market where seamless technology integration has become essential.

Can you wait while others redefine what “building value” means?

A SHARED OPPORTUNITY

The buildings of tomorrow will be defined not just by their physical structure but by their digital backbone. As we move beyond bricks and mortar, digital systems will determine how buildings operate, how tenants thrive, and how properties create value.

Are you ready to simplify the management of your building systems and enhance tenant satisfaction?

WHAT’S NEXT?

In our next post, we’ll explore how managing building technology as a utility can unlock hidden value and transform operational complexity into simplicity.

The future is here—how will you make the most of it?