Quarterly Connection September 2022

Table

Getting in on the Ground Floor

Attracting & RetainingTenants

Getting in on the Ground Floor

INTENNA SYSTEMS: Robin Lange

Would you want to work in a building where you had to stand in the corner to use your phone or stay in a hotel that could only give signal in the lobby? Nope No thanks

You don’t necessarily need to be convinced that you need better signal but explaining the best options for improving that connection can send your head spinning Let us lay it out simply, in plain terms

“Most people tend to avoid places that disrupt their connected lifestyle.“

CRE Competes with Amenities

Whether it be Commercial Office or High Rise Residential, urban buildings compete for tenants using amenities as the big guns. Fitness centers and coffee bars are not the only features owners are looking to include in their buildings. As more people depend on seamless internet and cellular connectivity, building owners need to have the necessary infrastructure to support demand. A recent report on millennials found that96% of those surveyed rated mobile phones as the most important itemused in their daily lives. And connectivity is considered the #2 “must have” by renters in a 2019 survey.

ROI and Asset Valuation

The CRE industry is run by Asset Valuation and Return on Investment.

The entire business plan is based on long term return involving equity gain and rent received. The equation is simple, each annual dollar of rent or CAMs translates to $25 of value in the property. Therefore, high rent buildings in Manhattan are valued in the hundreds of millions and some in the billions. So higher rent rates and maximum occupancy are paramount.

The end result is happy occupants, more of them, who are willing to pay a higher rate.

CRE owners trying to compete without seamless cellular coverage are at a disadvantage. Potential renters move on when they see no bars or pay a lower rent rate to tolerate it. Better in building cellular coverage directly translates to higher rent rates and occupancy. This has made DAS a well known term in CRE and has driven cellular coverage to nearly the top of the amenity list industry wide.

Cellular infrastructure is an invisible but imperative amenity. Will tenants notice the difference in carpet at $7/sq ft verses $5? Or, will a DAS network at $2/sq ft raise the appeal of a property to prompt potential tenants to cough up that rent and sign the lease?

They can tell immediately if they can’t do business or communicate simply Bad signal slow connection and spotty service are noticeable

Don’t skimp. Tenants expect good looking surroundings, but they can’t tell the difference between cheap or expensive carpet.

Imagine moving into a sleek building, complete with pristine decor, stunning views and a vast amount of rooftop green space, only to discover that the cellphone signal is spotty and the internet doesn’t work properly

Commercial real estate building owners understand that tenants who run into this predicament are likely to leave for one of their competitors with more reliable in building cellular infrastructure in place. To attract and retain tenants, building owners must ensure their cellular connectivity meets today’s expectations, said Jeff Reale, director of enterprise solutions at Intenna Systems, a provider of building wide wireless solutions

“Right now, high quality cellular service is a major factor that impacts customer satisfaction, and is key to attracting and retaining tenants,” Reale said, “There is this expectation

that it’s not really a luxury anymore, it’s a common amenity It should be factored into the rent cost the way it is for amenities that already exist within the building.”He noted that while in building wireless is an invisible amenity, it becomes very noticeable when it prevents tenants from doing their jobs or everyday tasks

Additionally, he said, on average a network can last between eight and 10 years, so adopting a solution that provides seamless coverage throughout the building would be a worthwhile investment For 25 years, Reale said, Intenna Systems has been targeting in building solutions and helping clients create, set up, operate and maintain an in building network

“We know the right infrastructure to install the network properly so that building owners don’t run into performance impacts down the road,” he said “We also know how to evolve the network to meet the changes, from 4G to what will eventually be 6G and beyond, as well as the applications that increase the value proposition of what this wireless network can do ”

To create a strong indoor network, he said, building owners must take into account a building’s coverage and capacity or bandwidth as well as whether or not the building is new construction

He added that a common obstacle to in building wireless is the perceived cost of installation, but building owners need to consider all the facts before jumping to conclusions about the price tag

“With new construction, you’re taking these costs into account at the beginning of the process, so it’s a bit easier to get the funding in place,” he said “We recommend obtaining a simple design budget and cost estimate from a qualified engineering firm that specializes in these networks Then you can incorporate the costs into the capital construction budget and overall construction plan ”

While in building makes up less than 2% of the price of capital construction, if funding is an obstacle for owners of newer buildings, he said, they may be able to spread out their payments throughout the phases of construction within the budget year

“For example, you can pay 25 50% of the cost in Phase 1, and then handle the rest of the cost for the other buildings in subsequent phases within the budget year,” he said "Construction can last multiple years, which gives business owners the opportunity to build in the cost of construction to subsequent yearly budgets in advance "

Construction on existing buildings, however, can be a bit trickier, as owners may be looking to cut down on expenses

“Owners of existing buildings may not want to spend annual operating expense dollars or a big capital expenditure after the fact because they just want to manage the building efficiently,” Reale said “However, in the past, tenants were able to put a stipulation in their long term leases that the building needed to provide a distributed antenna system or DAS which may give them some leverage here ”

Reale said in these cases, building owners and tenants can work together to figure out how to divide the in building wireless cost Alternatively, owners can cover the cost of the installation and charge the tenants a certain percentage after the fact

Because mobile network operators or cellular carriers may not have the capability to fund or oversee DAS solutions, he said, building owners should take the initiative to ensure the building has the funding necessary to set up a strong cellular connection to keep tenants happy for the long term

Owners looking to install and manage in building wireless solutions should consider partnering with a company that is experienced in providing these services to help with everything from funding to maintenance, he added

“Establishing the right partnership with the right company can help you navigate any questions related to technology, budget and network management as well as the application ecosystem and the Internet of Things,” Reale said “All of these factors come into play when you’re making that initial investment to provide value to your tenants for the next eight to 10 years ”

This article was produced in collaboration between Intenna Systems and Studio B Bisnow news staff was not involved in the production of this content

“It's incumbent upon the building owners and the corporations to take control of their own wireless destiny and to manage, maintain and deploy their own networks, which they can do by working with a company like Intenna Systems,”

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Intenna Targets CRE

Did You Know?

Intenna supports the Drexel Co op program taking on multiple students each term for the past 16 years, enabling undergraduate students to balance classroom theory with practical, hands on experience prior to graduation.

Spotlight On From the CEO

Quarterly Quote

“Increase in mobile data traffic, Internet of Things and demand for uninterrupted connectivity has the global Distributed Antenna Systems Market growing rapidly. 8.3B in 2021 with growth to 11.9B by 2028. That is one heck of a Compound Annual Growth Rate of 6.1%”

Coming Up

Marc Petock, Chief Marketing & Communications Officer, Lynxspring

AlkisTsitsios Project Manager

Graduated Drexel University with a degree in Civil Engineering,

Will eat anything that my grandmother puts in front of me, specifically her Greek stuffed zucchini Coaches basketball for kids. Would like the superpower of speed

"The positive environment and cooperative atmosphere at Intenna energizes me every day when I arrive at work "

Intenna set to build the Public Safety DAS for the IQHQ in San Diego's Research & Development District, the largest urban, commercial waterfront site along California's Pacific coast.

"Success comes to those who derive the most value from interoperability; not those who simply connect the most devices to their networks."

Intenna Systems can design and build the entire highway all four lanes. DAS, CBRS, Wi-Fi and two-way radio. We have over twenty years of experience designing, building and maintaining some of the most complex in-building wireless solutions anywhere. And we have developed a process for taking a project from needs assessment to engineering scope and design through installation all the way to deployment and maintenance to make it as seamless as possible. Think of Intenna as your department of transportation and let us help you get ahead of the curve.

Take the first step in getting your building up to speed. Get a free budgetary design estimate from Intenna today.