Why Connectivity Is the New ‘Location’ in Commercial Real Estate |
Why Connectivity Is the New ‘Location’ in Commercial Real Estate
In the age of AI and remote work, the true value of real estate lies in the strength of its digital infrastructure.
EXPERT OPINION BY ENTREPRENEURS' ORGANIZATION @ENTREPRENEURORG
Illustration: Getty Images
This article was written by Kirill Bensonoff, an Entrepreneurs’ Organization (EO) member in Boston. Bensonoff is the co-founder of New Silver, a fintech company with a mission to improve local communities by providing fast, convenient, and flexible capital to real estate investors using data and technology to streamline the process. Below, he shares insights about a new real estate trend: the digital infrastructure premium.
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The old “location, location, location” adage has held true for decades — shaping how buyers, sellers, and investors evaluate real estate value. However, times are changing, and location is no longer the only premium that matters, especially for business properties. A new factor now rivals, and in some cases surpasses, traditional location advantages: connectivity.
In certain markets, reliable digital infrastructure and network access have overtaken location itself as the most critical feature, reshaping how real estate value is measured.
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When infrastructure becomes a competitive advantage
For modern businesses, connectivity has moved beyond being a desirable feature and into the category of operational essentials. When companies evaluate where to locate or expand, infrastructure increasingly sits at the center of the decision.
Recent data reinforces this shift. A study by Boldyn Networks surveying more than 2,000 business leaders across the United States and the United Kingdom found that connectivity now outweighs traditional considerations such as amenities and, in many cases, cost. While location still ranks as the top factor when choosing a space to lease, Wi-Fi connectivity followed closely behind, with cellular connectivity ranking just below it. In the United States alone, 96 percent of respondents said they would be willing to pay a higher lease price to secure reliable connectivity, because of its direct impact on productivity.
Real estate evaluation has increasingly shifted toward functional performance, with growing demand for smart buildings that rely on integrated digital systems to support efficiency and sustainability. These environments depend entirely on robust connectivity, making infrastructure a core requirement.