Telecom Networks & High Tech Commercial Buildings: Second in a Series

Smart Buildings & Connectivity for Developers and Multiple Site Building Owners
Single & Multiple Dwelling Unit (MDU) Telecommunications Infrastructure that Pays
It’s All About Private D-Marc Forward Networks

All landlords and developers deal with power, water and communications as strictly utilities unto their own domains, which they accommodate in order to provide the basic services to tenants.

While water and power are their own domains, with one provider each, telecommunications has many providers, each needing network infrastructure to support their services.  It is the lack of cabling and wireless infrastructures that prohibits many technologies from being easily or cost effectively deployed.  The customer or providers then have to make large cabling investments post construction to deliver a new service.

To make the point, imagine a building that does not have conduits between floors or to the suites or where staff PCs and networked equipment will be placed.  The cost of upgrading under designed infrastructure post construction is so high that it drives potential tenants away.

Imagine the same building owner offering tenants easy installation of a whole menu of communications technologies and network services, including internet, WiFi, phone, video, TV, music, security, surveillance, access control, managed IT, smart appliances, automatic lighting, office automation; collectively the Internet of Things (IOT).   With a preinstalled infrastructure of conduit, each new tenant can simply and cost effectively order network or IT or communications related services, and easily connect them to all relevant points within the space.    These services can be tied back to a collective data room on a single floor of the building or to data rooms by floor, allowing complete flexibility for the tenants.

This is the Dmarc Forward Network (DFN), the operative word being network.  The Dmarc is where the carriers enter the property and their responsibility stops.  The DFN is the customer’s responsibility.  If it was already roughed in, like having a ceiling fan outlet, there would be no obstacle or high cost to provide new services—and the roughing in can be built for pennies on the dollar compared to post construction costs.

Providers prefer to tie into well built and operated central systems, allowing them to avoid the cost and responsibility of having to provide individual customer access and equipment infrastructure.  With the right cabling and fiber infrastructure, any number of service providers could deliver any number of advanced technology and building services to the entire development—and that is a very smart of set of buildings indeed—as well as modular.  Moreover, providers have been steadily moving away from absorbing costs associated with in-building cabling, due in large part to the high cost of post construction installation.

If you offer a better product with more features the clients want and need, clients will pay an increased monthly cost to 1) avoid the capital expenditure to upgrade your building, and 2) speed their ability to move in, connect their technical systems quickly, add feature services, and start operating.

Lesson to be learned:  Do not let your CRE stand empty because it does not offer the connectivity and service availability that today’s clients need.  Offer better connectivity and the easy availability of many services and upgrades as a premium selling or leasing feature.

Coming Up Next:

  • Smart Buildings: How to Generate Increased Rents and Passive Income from Great Infrastructure
  • Next Generation Technology Infrastructure for Manufacturing, Big Box Distribution and Warehouse

Danny Bax
The Blue Store