Most MDU buildings are designed to support today’s devices, but not tomorrow’s technologies. As we increase our connectivity needs, it is important to improve the digital infrastructure of MDU communities. Inventions like Web 3.0, the Metaverse, 5G, and Wi-Fi 7 will require significantly more internet connection than today’s devices.
Therefore, it is important for MDU investors to either create a future-proof infrastructure or convert current buildings to satisfy the growing need for connectivity. At WorldVue, we recommend investors convert office space into MDU communities as enterprise buildings can support tomorrow’s technology.
Why Now?
Our lives depend on secure, reliable, high-speed wireless connectivity. Technological advancements are growing faster than we’ve ever seen, and we expect this trend will continue. New ecosystems like the Metaverse will grow in prevalence, infiltrating all aspects of life and influencing the way we engage socially, relax comfortably, connect professionally, and advance financially.
As our dependence on connectivity grows, Wi-Fi systems need to advance. Most multifamily communities are ill-equipped to handle the data and demand for reliable connections future applications will require. We believe that a technological revolution is here today. The next generation of Wi-Fi standards of Wi-Fi 6E and Wi-Fi 7, from a consumer standpoint (guest or resident), will finally allow complete wire replacement, with speeds, latencies, and reliability to provide transformative immersive mobile experiences.
Investing in future-proof digital infrastructure is essential for residential multi-dwelling communities. It is increasingly important to choose a technology provider that you can rely on to accommodate any and all changing needs.
Digital Infrastructure
At WorldVue, we have a heavy focus on digital infrastructure. We believe it is extremely important for investors and construction professionals to implement updated digital infrastructure in order to stay relevant today and in the future.
Digital infrastructure is essentially a building’s data center that encompasses any and all communication network technology (i.e. 5G, Wi-Fi, optical networking, IoT, IIoT, etc.) to create a platform for data sharing and consumption practices (World Economic Forum). Reliable infrastructure is key to accommodating the increasing number of connected devices.
Digital infrastructure is a resource used to enable data connections and connect computerized devices.
Digital Infrastructure includes:
- Risers
- Fiber networks in the building
- Underground pathways
While digital infrastructure is in every building, most companies don’t look at their buildings as digital infrastructure facilities. Instead, owners look at them as apartment communities, office buildings, or industrial facilities. Instead, we encourage investors and property owners to redirect their thinking and consider the existing digital infrastructure in their buildings and build upon it.
The Benefits of Converting Office Space to Accommodate Multifamily Housing
There are huge benefits to converting office space into residential, multifamily housing as office buildings have the infrastructure to accommodate the growing need for connectivity.
Modern-day office spaces are built to support a multitude of devices, including personal phones, computers, projectors, etc. Likewise, multi-family residential properties need this type of infrastructure to support the continuing demand for connectivity.
In addition to the operational cost-saving opportunities, digital infrastructure has less-than-obvious financial results, including resident satisfaction. Maintaining a happy base of occupants is financially essential as they pay rent and occupy your space. Resident satisfaction can be attributed directly to technology and connectivity.
Financial Incentives
Electricity savings
Managing your lighting systems, HVAC systems, etc. with automation and computational power through connection and sensor implementation can save up to 40% on your energy bill.
If you apply capitalized value to what you save and how much net operational income you receive because of things like utility savings, it becomes a very significant component of value creation for property owners.
Cost of Conversion
Office spaces have more existing infrastructure to build upon than outdated multifamily communities. This is important, as this investment will save money on retrofitting costs.
Return on Investment
Traditional digital infrastructure companies (i.e., power companies, fiber optic companies, data center companies, etc.), earn multiples that far exceed the multiples earned by real estate funds.
It is financially advantageous to intermingle digital infrastructure with the building’s current purpose. For example, an apartment community with a digital infrastructure strategy can drive additional revenue through rent and cost savings.
As an investor, you must look at how you leverage things at any potential point, and what strategies you can use to increase the value of your property. Digital infrastructure is a strategy you should consider, and you should look for companies out there who know this space and live and breathe this space to partner with because doing it by yourself from scratch is very tough to do. It’s tough to find a good network engineer out there that is worth their weight. It’s a difficult task so that’s why you want to go to companies that that’s their bread and butter.
How to Assess Your Property’s Existing Infrastructure
It is important to know the current state of the building’s infrastructure to build upon it. At WorldVue, we can retrofit properties and design new networks built to satisfy future needs. To begin this process, we perform a consultation and on-site survey to determine unique needs. We then design a custom retrofit solution that works with the current infrastructure instead of simply ripping it out and starting from scratch. For more information on these services, please visit www.worldvue.com.
For more information on how to assess your building’s current needs, download our article, 5 Steps for Success: Assessing Your Property’s Technology Infrastructure.