5G will not just support trends in commercial real estate. It could transform how the industry works.
Consider Internet of Things (IoT)-enabled building management systems. 5G will eventually support increased IoT device use through the real-time connectivity its low latency and high bandwidth enable, meaning building managers could deploy IoT-enabled systems to garner insights about how they can make their buildings more energy-efficient, for example, the ability to predict elevator maintenance needs. 5G can also enable more efficient use of existing technologies during building construction, too. It could facilitate remote operation of heavy machinery across multiple building sites, for instance.
At the same time, 5G is likely to influence tenant demands and expectations. It has happened before—consider how the business need for lower-latency video conferencing pushed demands for faster connections—and it will continue to happen as the remote workforce expands and communication speed becomes more critical. Remote connectivity needs are likely to increase as remote work and automation become more attractive to businesses in multiple sectors, the Certified Commercial Investment Member Institute says—and 5G can meet those needs.
5G is now driving decisions in commercial real estate. Cellular carriers are bringing 5G technology to customers worldwide, expanding available connectivity options. For some property owners and developers, the combination of 5G and real estate will force new questions, such as whether the network could ever replace Wi-Fi. Understanding the nuances in these applications will be critical to staying ahead of customer interest and aligning with market expectations.