We often get asked: “Why is it better for me to own versus not own the networks in my building?”
In an era where commercial real estate (CRE) is increasingly intertwined with technology, owning and managing your digital infrastructure is no longer optional—it’s essential. Property owners who allow third-party networks to operate within their properties relinquish control over valuable data, connectivity, and tenant experience. Instead, those who take ownership of their CRE digital infrastructure can maximize revenue, optimize building performance, and future-proof their investments.
This article explores the key reasons why owning your CRE digital infrastructure is a superior strategy, leveraging insights from McKinsey, NAIOP, and other authoritative sources.
1. The Power of Data Ownership
Data is the new oil in CRE, fueling decision-making, tenant experience, and operational efficiencies. According to McKinsey’s insights on AI-driven enterprises, businesses that harness their own data streams will have a competitive advantage in the coming decade.
When third-party operators control network infrastructure, they also control the data that flows through it. This restricts property owners from leveraging real-time analytics, AI-driven insights, and predictive modeling to enhance building performance. In contrast, direct ownership of digital infrastructure enables CRE owners to:
- Aggregate tenant and property data for AI-driven decision-making.
- Improve operational efficiencies through automated and predictive analytics.
- Monetize data insights to create new revenue streams.
2. Enhanced Tenant Experience & Retention
Modern tenants demand seamless, high-speed digital experiences within commercial spaces. JLL highlights how businesses increasingly select properties based on their digital capabilities, such as high-speed connectivity, smart building technology, and frictionless experiences.
When landlords relinquish network control to third parties, they risk inconsistent service quality, potential outages, and a lack of customization. Directly managing digital infrastructure allows property owners to:
- Ensure consistent and high-quality internet connectivity.
- Provide smart building integrations tailored to tenant needs.
- Use AI-powered building automation for energy efficiency and security enhancements.
3. Maximizing Revenue Potential
By owning digital infrastructure, CRE owners can unlock new revenue streams that would otherwise be siphoned off by third-party network providers. Reports on Big Data in Commercial Real Estate underscore the growing financial value of data and digital assets in property management.
Key monetization opportunities include:
- Offering premium internet services directly to tenants.
- Monetizing smart building analytics by providing actionable insights to tenants.
- Partnering with service providers to deploy AI-driven solutions for energy efficiency and predictive maintenance.
- Generating ROI from technology investments: Digital infrastructure is not merely an expense but an asset with measurable returns. Smart building solutions can increase property value, reduce operational costs, and create revenue-generating opportunities that lead to long-term financial gains.
4. Vendor Control: A Unified and Secure Infrastructure
When CRE owners allow multiple vendors to implement disparate network solutions within their properties, they end up with a fragmented, unmanageable system. A building could have 12 different networks, each undocumented, unsecured, and managed by various third parties with differing standards. This creates operational inefficiencies, security vulnerabilities, and a lack of cohesive oversight.
By consolidating digital infrastructure under one engineered, managed, and secure system, property owners can:
- Ensure a well-documented and structured digital ecosystem.
- Improve security by eliminating unmanaged networks with unknown vulnerabilities.
- Enhance operational efficiency with centralized management and monitoring.
- Reduce riser crowding and spaghetti-network complexity, leading to lower maintenance costs and fewer technical disruptions.
Choosing a single, strategically designed infrastructure enhances long-term value, performance, and security, providing a stable foundation for future technological advancements.
Would you rather have the top or the bottom image represented in your property?
Each color represents a disparate network.
4. Security and Compliance Advantages
Cybersecurity is a major concern for modern real estate operations. When third-party providers manage digital networks, property owners have less oversight over security measures, data privacy, and compliance protocols.
By owning your digital infrastructure, you can:
- Implement robust cybersecurity measures to protect tenant and property data.
- Ensure compliance with industry regulations and data privacy laws.
- Reduce risk exposure by keeping sensitive data under direct control.
Businesses leveraging AI must have a solid data governance strategy to mitigate risks—a challenge best tackled when owners retain control over their networks.
5. Future-Proofing Against Technological Disruptions
Technology in CRE is evolving rapidly, with advancements in AI, 5G, and IoT reshaping how buildings operate. JLL highlights how AI-powered solutions are now critical for energy management, predictive maintenance, and operational efficiencies.
When CRE owners manage their own digital infrastructure, they can:
- Seamlessly integrate emerging technologies such as AI, blockchain, and IoT.
- Quickly adapt to new digital requirements without relying on third-party upgrades.
- Ensure that their properties remain competitive in a rapidly changing market.
6. The Competitive Advantage of Smart Buildings
The rise of smart buildings has made digital infrastructure a key differentiator in CRE. Tenants now expect intelligent lighting, climate control, and automated security—all of which require a robust and well-managed network.
Businesses that prioritize digital transformation will outperform competitors in the next decade. Owning digital infrastructure gives landlords the flexibility to:
- Implement smart building features without third-party restrictions.
- Customize technology solutions based on specific tenant needs.
- Optimize energy consumption, reducing costs and environmental impact.
7. Avoiding Vendor Lock-In and Dependency
When third-party providers control a property’s digital infrastructure, owners often become locked into proprietary networks and service agreements. This dependency limits flexibility and can result in costly upgrades or service disruptions.
Owning your infrastructure allows you to:
- Negotiate better vendor terms with full control over network decisions.
- Avoid being restricted by outdated or overpriced service contracts.
- Maintain flexibility to adapt to new market conditions and technologies.
8. Smart Buildings and Sustainability
Smart buildings are the future of CRE, providing a path to sustainability, cost reduction, and enhanced property value. According to industry reports, 40% of global CO2 emissions come from buildings, making energy-efficient infrastructure a priority.
By directly managing digital infrastructure, CRE owners can:
- Monitor and control energy consumption in real-time.
- Implement AI-driven optimizations to reduce waste.
- Achieve compliance with sustainability certifications such as WELL and LEED.
Companies that integrate smart building solutions can cut energy costs by 20% and maintenance costs by 40%, illustrating the financial and environmental advantages of digital infrastructure ownership.
9. Simplifying Smart Building Implementation
While transitioning to smart building infrastructure may seem complex, modern platforms simplify integration without requiring costly overhauls. The right technology harmonizes disparate data sources, allowing property owners to:
- Centralize building intelligence into a single dashboard.
- Automate climate, lighting, and occupancy controls for efficiency.
- Utilize predictive analytics to enhance maintenance and reduce downtime.
10. Security and Compliance Advantages
Cybersecurity is a major concern for modern real estate operations. When third-party providers manage digital networks, property owners have less oversight over security measures, data privacy, and compliance protocols.
By owning your digital infrastructure, you can:
- Implement robust cybersecurity measures to protect tenant and property data.
- Ensure compliance with industry regulations and data privacy laws.
- Reduce risk exposure by keeping sensitive data under direct control.
Businesses leveraging AI must have a solid data governance strategy to mitigate risks—a challenge best tackled when owners retain control over their networks.
Conclusion: Control Equals Value
The CRE industry is undergoing a digital revolution, and property owners must take control of their digital infrastructure to remain competitive. By owning and managing networks within their buildings, landlords can maximize data-driven insights, enhance tenant experiences, unlock new revenue streams, and ensure cybersecurity compliance.
As AI, smart buildings, and big data continue to shape the future of real estate, those who control their digital ecosystems will reap the greatest rewards. Third-party networks may offer convenience, but the long-term value and strategic advantage lie in direct ownership.
Investing in your digital infrastructure isn’t just about connectivity—it’s about future-proofing your CRE assets for the next era of intelligent real estate.