How Digital Performance Is Shaping Commercial Property Value

Monday, April 20th, 2026

In this article, Chris Collison, Commercial Director at Modern Networks, explores why digital performance is now being priced into commercial property in much the same way the market has learned to price ‘brown discounts.’ The message is straightforward: connectivity has moved from a back-office consideration to a visible factor in leasing, tenant retention and asset value. And owners who treat it as a core building utility will be better placed to defend income and competitiveness.

For years, the property industry has talked about brown discounts and how poor energy performance and weak sustainability credentials are priced into leasing, valuation, and lending decisions.

Now, building digital credentials has become part of the same conversation. Poor digital performance is starting to have a comparable negative impact, and the market is learning how to recognise (and price) digital risk.

That’s the central message of From Brown Discounts to Digital Premiums, a new whitepaper written by my colleague, Charlie Trumpess at Modern Networks, which pulls together UK-specific evidence on the growing importance of digital resilience and performance.

I highly recommend giving it a read. But if you don’t have the time, here’s my summary and perspective on why it matters, and what you should take from it.

Chris Collison, Commercial Director at Modern Networks Ltd

THE MARKET IS LEARNING HOW TO PRICE DIGITAL RISK

Tenants increasingly treat connectivity as a basic utility, on par with power and water. They expect to walk into a building and access connectivity services from day one, without long delays, complex installation processes or avoidable inconveniences.

In practical terms, that expectation is becoming a commercial factor. If digital underperformance creates friction during onboarding, interrupts day-to-day operations or undermines confidence, it will show up in negotiations and, increasingly, in pricing.

HIGHLY VISIBLE SHORTCOMINGS

Connectivity issues are also far more visible than they used to be. During viewings and leasing conversations, weaknesses often surface quickly: single points of failure, poorly managed infrastructure, security concerns and patchy mobile coverage. These can make or break negotiations, and not only with prospective tenants, but also with existing occupiers considering renewal.

Where shortcomings exist, landlords are increasingly forced into commercial remedies: additional incentives, discounts, service credits, or accelerated capex commitments. The whitepaper’s argument is compelling: the market is starting to price digital gaps in the same way it already prices energy inefficiency and sustainability shortfalls.

EVIDENCE AND CERTIFICATION

A key shift is the growing role of independent certification. Frameworks such as WiredScore and SmartScore give stakeholders a simple way to understand digital capability without wading through lots of technical jargon.

That matters because digital risk is assessed by many parties, such as valuers, lenders, agents, investors and tenants, and each needs evidence they can trust and compare. Certification provides a clearer ‘signal’ and helps reduce friction in due diligence and decision-making.

FUNDAMENTALS VS CUTTING EDGE

One point that comes through strongly is that this isn’t primarily about chasing the newest ‘smart building’ features. It’s about fundamentals: operational maturity, governance, and security.

There will always be new technology layered on top as buildings evolve, from smarter control systems to richer tenant experiences and data-driven optimisation. But none of it performs reliably (or safely) without the unglamorous digital ‘plumbing’ underneath: resilient connectivity, well-managed infrastructure, clear ownership, and controls that stand up to scrutiny.

In other words, get the basics right first, and then innovation becomes an advantage rather than a risk.

DIGITAL ACCELERATION

My view is that this shift will continue to accelerate. The broad adoption of cloud services, high-definition video, data-intensive workloads, and yes, dare I mention AI, is driving higher bandwidth expectations and a greater reliance on resilient connectivity inside buildings.

Owners who don’t recognise this, and who don’t start treating digital as a core building utility with the right governance, will find it harder to protect income, maintain valuations and sustain occupancy as expectations keep rising.

WHAT THIS MEANS FOR LEADERS (A QUICK CHECKLIST)

If you’re responsible for a portfolio or asset plan, a simple way to start is to ask a few practical questions:

  • Can tenants be ‘day-one ready’ without delays or complex installations?
  • Are there any single points of failure that could take a floor, or a building, offline?
  • Is digital infrastructure governed like other core services (clear owner, monitoring, maintenance, incident response)?
  • Can you evidence capability in a way valuers, lenders and tenants will recognise (e.g., independent certification)?
  • Are mobile coverage, comms rooms and security controls treated as leasing-critical assets?

THE BOTTOM LINE

My key takeaway from Brown Discounts to Digital Premiums is clear: digital capability is no longer hidden infrastructure. It is a market signal.

Buildings that can demonstrate reliable, well-governed digital performance are better positioned to lease faster, retain tenants and defend value. Those that can’t are increasingly exposed and, in my opinion, will fall further behind as ‘digital-first’ expectations become the norm.

If this is currently a priority or concern for you, then I’d recommend reading the whitepaper. And if you’d like to discuss what it could mean for your assets, please get in touch.

 

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