Dive Brief:
- Office occupiers driving demand in the market are increasingly tech-focused, reinforcing the need for office owners and operators to provide high-capacity digital connectivity infrastructure, according to a reports by WiredScore and commercial service firms.
- Tech demand on a nationwide basis increased 19% quarter-over-quarter in the second quarter of 2026, with higher-than-average gains in New York City, Washington, D.C., and San Francisco, according to VTS’ national office demand index.
- More than 90% of senior decision makers say digital connectivity is now “as fundamental to their business as water, gas and electricity,” WiredScore says in its report. Close to 60% say they would not lease a space that isn’t AI-ready, according to a survey of 600 responsible for facilities or real estate in office or industrial premises. WiredScore is a global digital infrastructure rating company.
Dive Insight:
Nationally, the amount of space that tech companies need is up 88% year over year by square footage, VTS says, “reflecting a rise in average deal size from 14,500 to 19,000 square feet.” Over the same window, the demand for space dropped 24% in the finance sector, 20% in the legal sector and 8% in the professional services sector.
More demand is expected in the tech sector. Almost two-thirds of tech-reliant occupiers plan to grow their footprint over the next three years, up from 41% last year, according to CBRE’s 2026 midyear real estate market outlook.
Recovery in the North American office market has primarily been concentrated in a narrow band of best-in-class buildings, “and the definition of Class A [office assets] is shifting as a result,” WiredScore says in its report. “Location, specification, and amenity alone are no longer enough.… Occupiers now expect immediate operational readiness as standard.”
Deals involving move-in ready space now account for 80% of small office leases, up from 50% before 2020, according to CoStar.
“Many of our clients are looking to move into space ASAP, and Internet/WiFi takes time to deliver and install,” Will Cassriel, senior vice president of tenant representation at JLL, says in the WiredScore report. “When the space is already equipped with connectivity infrastructure, it’s a game changer for our clients and can certainly influence which space they choose to move forward with.”
Occupiers are seeking office space that’s ready to accommodate their work upon move-in, but providing this connectivity can be costly, and is often left out by owners and operators, per the report. These costs typically sit at 4% of standard base building costs, or about $11.03 per square foot, according to Cushman & Wakefield’s 2026 office fit-out cost guide.
But with business leaders expecting further adoption of advanced technologies — cloud storage, AI and IoT — over the next two years, landlords must provide high-capacity connectivity to adequately meet demands, WiredScore says.
In addition to the 81% of tenants who are looking for pre-installed networking at their offices, connectivity is also affecting lease renewals, per the report. Almost 90% of respondents say that bad connectivity would cause them to pass on renewing a lease, with the same proportion ruling out space that cannot support their future technology requirements, WiredScore says.
