WiredScore’s building certification is widely used across the office and residential sectors to assess connectivity and tech readiness. In March, the proptech firm moved into a new area: industrial.
Already, eight clients are undergoing the certification process, including Segro, Panattoni and Trammell Crow.
WiredScore’s expansion is the result of two years of analysis of the industrial market, said Tom Vaughan-Fowler, WiredScore regional director for the UK, Ireland and the Middle East.
“We established that there was a difference between tenants’ expectations of the connectivity in a finished unit and the reality of what was being delivered,” he said. “We saw an opportunity to help the industry create smarter, better-connected properties and deliver a certification scheme that gives owners a competitive advantage.”
Bisnow spoke to Vaughan-Fowler about four aspects of connectivity that the industrial market needs to understand.
Get The Base Layer Right
Industrial properties need two layers of technology, Vaughan-Fowler said. First, a developer needs to get the foundations right, such as fibre, bluetooth and mobile signal. Next, they can overlay the visible technology that can be seen in a warehouse – robotics, automation and tools that are more tangible.
“So often we see tech being implemented for the sake of it,” he said. “Actually, focusing on getting the foundations right is where owners can start to see meaningful results.”
Vaughan-Fowler gave the example of mobile connectivity, which people rely on for both professional and personal reasons. Warehouses can often be located in areas with poor signal and if, on top of that, the structure of the building is hindering mobile signal, they can’t be fully optimised for tenants.
WiredScore certification assesses both layers, Vaughan-Fowler said. Buildings are scored against various categories, including mobile performance, sustainability and fixed internet provision. WiredScore will then work alongside the client to provide a road map to improvement, which means an enhanced experience is passed on to the end user.
“Our aim is to help clients ensure they aren’t left behind,” he said. “The pace of technological change is rapid and, as we know, the real estate industry is slow to adapt to change. In the industrial sector specifically, not much has changed in the last few decades, but we are now seeing a much quicker pace of change, which landlords need to recognise if they want to keep up.”
Landlords Need To Improve Connectivity
During the pandemic, the high demand for industrial and logistics space meant it was easier to lease a unit, Vaughan-Fowler said. In the last two years, the leasing landscape has become increasingly competitive. Investing in robust connectivity foundations is becoming a way for landlords to stand out.
“Having reliable connectivity widens the potential pool of occupiers,” he said. “Tenants have quickly realised that great technology is not ubiquitous across all buildings, and so investing in it is a way for landlords to give tenants what they actually need from a space.”
Vaughan-Fowler cited fixed internet provision as an example. In some instances, securing internet connection is left until after the space has been leased, which leaves the landlord at risk of not collecting rent until this connection is established.
“Landlords are leaving themselves exposed by not being able to turn around to tenants and say ‘Move straight in and you’ll have internet from day one,’” he said. “If owners are prepared to lay the technological foundations, they can embark on a relationship knowing their tenants will be satisfied with excellent connectivity provision.”
Sustainability Is Underpinned By Technology
While WiredScore is not a green building certification, technology underpins how a property owner can understand the environmental impact of a building, Vaughan-Fowler said.
“Gone are the days when a unit would be leased for 15 years and the landlord doesn’t have anything to do with energy use,” he said. “With the advent of Scope 3 emissions, landlords are expected to report on their tenants’ energy use. If you don’t have good infrastructure, with smart meters connected to the internet, it becomes much harder to get the level of detail required.”
As part of the certification process, WiredScore measures how a building tracks factors such as energy usage, access, water and waste consumption. It then presents it back to the landlord in a way where they can visualise usage and pick out areas where they can collaborate with tenants to make improvements.
Investors Pay Attention To Connectivity
No matter the structure of ownership for industrial property, it pays to demonstrate the connectivity level of a property, Vaughan-Fowler said.
“Gaining WiredScore certification for a property you have invested in not only shows you are future-proofing the asset and extending the lifetime of the investment, but that you have created an asset that responds to demands we know tenants are making around excellent digital connectivity,” he said. “There are funding and reputational benefits as well as occupational benefits.”
As the pace of technology continues to increase, connectivity will become even more important in industrial property, Vaughan-Fowler said. Investors recognise this as much as occupiers, he said, and it will be the property owners who consider the future today who are best positioned to grow their market share.
This article was produced in collaboration between WiredScore and Studio B. Bisnow news staff was not involved in the production of this content.
Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.
