by Rob Murchison
For decades, commercial real estate (CRE) has depended on essential utilities—water, gas, and electricity—to power buildings and support tenant needs. But what if the most transformative utility isn’t physical at all? Digital infrastructure has the potential to become the next frontier in CRE, reshaping building operations and unlocking new value-creation opportunities. However, many remain hindered by its perceived complexities.
In our last post, we explored why digital infrastructure and systems must be treated as essential utilities, like water, gas, and electricity. The next step is understanding how this shift can simplify operations, reduce costs, and enhance the value of your portfolio. Because here’s the truth: managing CRE technology doesn’t have to be complex or intimidating. Approaching digital infrastructure from a fresh perspective can make it one of the most powerful tools in your portfolio.
WHAT DIGITAL INFRASTRUCTURE CAN ENABLE
Electricity didn’t just improve lighting; it helped us reimagine what commercial spaces could be. Today, digital infrastructure offers the similar potential to reshape CRE, unlocking operational efficiency, sustainability, and tenant satisfaction opportunities.
Enabling Seamless Building Systems
What’s holding your building back from reaching its full potential? Is your technology simplifying operations or adding unnecessary complexity? Does your digital infrastructure enable your building systems to operate seamlessly, or is it holding them back?
Reliable and convenient digital infrastructure is the backbone that enables critical systems like HVAC, power management, and physical access control to function effectively. Property teams can ensure secure, optimized, and efficient operations by designing and maintaining digital infrastructure utility as a property fixture—on par with traditional utilities like water and electricity. Making this shift in mindset isn’t just about technology—it’s about transforming how buildings function, creating a foundation for long-term value creation.
Sustainability and Smart Buildings
What if your buildings could lower energy costs while meeting tenant demand for eco-friendly practices?
A digital infrastructure utility supports energy monitoring and automation, enabling systems to adjust dynamically to reduce waste and consumption. These capabilities meet tenant expectations and comply with local sustainability laws in many regions of Europe and the United States, while also achieving significant operational cost savings.
Future-Ready Connectivity with 5G and Private LTE
Is your property ready for the connectivity demands of the future? Are you tired of constantly needing to install and manage new cables for connectivity?
A digital infrastructure utility combines wired and wireless connectivity, supporting the ubiquity of 5G and accelerating the adoption of Private LTE. This enables fast, convenient, and secure connections for building systems ANYWHERE in your buildings so that operational teams don’t waste time or money establishing connectivity; it just works.
Enhanced Tenant Experience and Value Creation
How are you elevating your tenants’ experience?
A well-managed digital infrastructure utility enables property owners and operators to provide seamless connectivity, comfort, and sustainability, creating secure, technologically advanced environments that add value to tenants’ businesses without overwhelming them with complexities.
SIMPLICITY DRIVES FINANCIAL RESULTS
Today’s buildings rely on three centralized utilities—water, gas, and electricity—each playing a critical role in daily operations. The digital infrastructure utilty, however, stands apart. Unlike water or electricity, digital infrastructure is inherently decentralized, with networks of devices, systems, and data flows spread throughout a building or portfolio. This decentralization often creates unnecessary complexity, but it doesn’t have to.
By applying the same principles used to manage traditional utilities—simplicity, reliability, and scalability—building owners and operators can turn all digital systems within their buildings into a source of financial strength rather than operational stress.
Let me ask: What if your digital infrastructure and systems operated as seamlessly as your electricity or water systems? How much more efficient could your operations become?
TURNING COMPLEXITY INTO SIMPLICITY
Managing digital infrastructure as a utility simplifies challenges by providing a clear framework for integration, oversight, and optimization:
- Unified Management Reduces Complexity: Are you struggling with systems that do not communicate with one another? Do you often find yourself chasing technology problems instead of focusing on cost optimization and enhancing tenant experiences? By centralizing oversight and integrating your digital infrastructure utility with the systems that depend on it, you can reduce redundancies, improve clarity, and concentrate on delivering value.
- Reliability That Drives Cost Savings: How often do inefficiencies or downtime disrupt your operations? A properly managed digital infrastructure utility minimizes interruptions and optimizes energy use, delivering significant cost savings.
- Scalability to Support Growth: Are your digital systems adaptable enough to grow with your CRE portfolio? A well-managed digital infrastructure utility, like traditional utilities, adjusts seamlessly to meet tenant demands and adopt future technologies, granting you true power over your portfolio without your team becoming a CRE tech specialist.
A CLEAR PATH TO SIMPLIFICATION
You don’t need to replace what you already have. Instead, transforming your digital infrastructure into a utility can be achieved in three simple steps:
- Assess Your Existing Digital Assets: Identify which CRE technologies are present in your buildings, what is functioning properly, what is not working, and where improvements are needed. Begin by assessing your current digital infrastructure and systems to pinpoint areas that require enhancement.
- Seek Expert Advice: Do you have a knowledgeable partner to guide you through this transformation? Working with specialists ensures your digital infrastructure utility is tailored to your unique needs.
- Empower Your Team with Digital Infrastructure Management: Imagine your staff confidently managing your digital systems without needing to master the underlying technology. Success lies in equipping them with the right tools and training.
THE TANGIBLE FINANCIAL BENEFITS OF THE DIGITAL INFRASTRUCTURE UTILITY
What would it mean for your CRE portfolio if technology became a source of simplicity instead of complexity?
When digital infrastructure is treated as a utility, it delivers measurable financial benefits that directly impact your bottom line:
- Reduced Operating Expenses: Consolidated digital systems optimize energy usage and lower operating costs.
- Higher Absorption Rates: Modern, tech-enabled buildings attract tenants faster, reducing vacancy rates.
- Improved Net Operating Income (NOI): Lower expenses and higher occupancy translate directly to increased profitability and property value.
WHY THIS MATTERS NOW
What’s the cost of waiting? Could complexity hold your buildings back while your competitors gain a competitive edge by embracing simplicity and innovation?
Your buildings already have the potential to deliver stronger financial performance. The key is unlocking that potential by simplifying your approach to CRE technology. Digital infrastructure, when managed as a utility, works behind the scenes—supporting operations, delighting tenants, and driving NOI.
The choice is simple: embrace this shift now or risk falling behind as the industry moves forward.
LOOKING AHEAD
As a CRE leader, your role is to ensure your portfolio remains competitive and profitable. By treating digital infrastructure as a utility, you’re not just managing building systems better—you’re transforming your digital infrastructure and systems into assets that deliver long-term value for owners, operators, and tenants alike.
In our next post, we will explore how managing building technology as a utility can reveal even more hidden value. This approach provides greater visibility into what matters, simplifies operational complexity, and delivers financial results that truly stand out.
Are you ready to take the next step in transforming your CRE tech?