There’s a great deal of chatter about the factors supporting a smart real estate investment. Certainly, the buildings on the site are one consideration. Cushman & Wakefield’s “Infrastructure, The Foundation of Smart Site Selection” suggested that quality infrastructure is also a must. “Power, water, transportation and digital connectivity are not just operational necessities; they are strategic foundations that power performance,” the report’s authors commented.
Efficiency, Accessibility, Feasibility
The article explained that successful developments—whether industrial, commercial or mixed-use—require “reliable systems that can scale with demand.” To that end, investors and businesses should analyze four infrastructure pillars: power, water, transportation networks and digital connectivity.
Well-maintained pillars can help real estate investments remain valuable. However, “power outage, a delayed rail line or a downed network can throw entire supply chains into disarray—shipments stall, costs rise and businesses struggle to meet demand,” the article said. This can also impact real estate value. It also drives the demand for shovel-ready sites with utilities and available power.
Bring on the Power—And Sustainability
It’s a given that data centers need more and more power. However, “modern commercial spaces increasingly demand high-capacity power infrastructure to support a high density of electronic devices, advanced technologies and automation systems,” the article writers noted. With the demand, some companies are looking into a “bring-your-own-power” model that might include on-site substations or co-location with emergency energy infrastructure. Added to all of this is the growing use of cleaner power.
Also essential is access to clean, reliable water—especially in industries including manufacturing, technology and agriculture. “Water infrastructure must support both supply and efficient wastewater management to meet environmental regulations and sustainability goals,” according to the article. “As climate concerns grow, energy-efficient systems, including smart water management, are becoming essential to maintaining resilient operations.”
Then, There’s Digital
The article discussed “robust transportation networks” including roads, rail, air and ports. Furthermore, “in today’s economy, digital infrastructure is as essential as physical infrastructure,” the writers commented. Such infrastructure includes fiber-optic networks and telecommunications systems that can handle daily communications, data-intensive operations and cloud-based automation. The digital backbone also needs to support smart building technologies and remote/hybrid work.
“By choosing sites with advanced digital infrastructure, properties can meet the demands of a connected workforce and evolving technologies,” the article said.
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