The remote work standard was short-lived. But it pandemic, that companies were giving up their leases, canceling their landline phones and moving to a fully remote workforce; a workforce with BYOD (bring your own device) phones and laptops that was fluid and dynamic, capable of working at any time and any place.
In the post-pandemic era, CEOs have rapidly concluded that a fully remote workforce lacks the ability to creatively problem-solve and work efficiently as teams. The productivity gains from the dynamism of working anytime and anywhere were off set by the sheer lack of presence and real-time interactions.
Recently viewed as the future of the working world, remote work policies have once again taken a back seat to the more traditional, in-office model.
Heading into 2025, we saw more companies and organizations — from Fortune 500s to the U.S. federal government — rolling back remote work approaches and bringing employees back to the workplace, either on a full-time or a hybrid schedule.
In 2024, companies with fully remote policies dropped to 25% (from 31% the year before), while the average number of days required to be in office increased to 2.78 per week, according to a Forbes report.
As the return-to-office boom continues, companies are finding communication technologies from the pre-pandemic world to be archaic. Cable modems, SIP trunking and PBX phone lines are being phased out, as businesses refocus their IT stack on more modern in-building connectivity solutions that complement a hybrid workforce. These include fast fiber, pervasive Wi-Fi and expansive cellular coverage that enables sales calls to be made, whether in the parking garage or the conference room.
It is in this context that connectivity has taken on the role as the “fourth utility” — but unlike a utility, it can sometimes be unclear where responsibilities lie between the owner/occupier from both an operational as well as economic perspective. Where it has become common for the responsibilities of other utilities to be called out in lease agreements as gross, triple net, etc., connectivity often falls through the cracks and can create friction in the owner/occupier relationship.
WHY CONNECTIVITY IS A SHARED RESPONSIBILITY
As office leasing evolves, strong connectivity has become a key factor in tenant decisions and retention. Ensuring reliable connectivity is no longer the sole responsibility of tenants, landlords or brokers — it’s a shared effort.
Historically, the responsibility for wireline internet access has fallen almost entirely on the occupier, whereas the owner is responsible for providing building entry access agreements and maintaining building risers and conduit. Wi-Fi access points, with a few exceptions, have traditionally been put entirely on the shoulders of occupiers.
Cellular, on the other hand, was once entirely driven by wireless carriers and, to this day, most owners and occupiers believe an inadequate cellular signal is the responsibility of the MNOs (mobile network operators) to rectify. But to the chagrin of owners and occupiers alike, carriers have largely pulled back from providing capital to in-building projects, leaving a significant gap in responsibilities.
Further complicating the issue is when environmentally minded retrofits (e.g., LEED windows) or nearby building developments block a formerly strong radio frequency signal from entering a building, creating a problem without an easy solution.
Sophisticated owners/occupiers now realize that they are on the hook for determining a cellular solution themselves, but the responsibility for operational and economic costs is unclear. The challenge with cellular lies in provisioning and device access. When boosting cellular coverage within an office space, a stronger signal is available pervasively, regardless of the amount of usage and by whom, operating much like a common-area amenity.
It is also generally cost-effective to scale a cellular coverage system across multiple floors or an entire building rather than managing unit by unit. This further incentivizes the landlord to invest in an end-to-end solution. This shared accessibility further blurs the lines of responsibility.
Collaboration is becoming more common. Many occupiers are now working with tenant reps from property managers to ensure wireless infrastructure is in place before leases are signed. For example, before signing a significant long-term lease, prospective tenants often work through their tenant rep to make sure their lease includes a cellular DAS (distributed antenna system) that would provide an adequate 5G signal.
All stakeholders — tenants, landlords, and brokers — have a role to play. Tenants need reliable wireless to drive operations, landlords benefit from an increased property value through higher rents and greater occupancy and brokers need to ensure connectivity is addressed in negotiations. Recognizing this shared responsibility promotes transparency, cost-sharing discussions and better long- term planning.
BENEFITS OF COST SHARING
Cost-sharing mechanisms vary based on lease terms, tenant needs and the building’s structure, but the benefits can go beyond splitting expenses.
A landlord’s investment in core technology, such as boosting cellular coverage, can be a major marketing asset. Strong connectivity attracts tenants, and landlords can incorporate these costs into common area maintenance (CAM) charges. This ensures all tenants contribute to the upkeep and enhancement of wireless capabilities.
At the same time, businesses can invest in connectivity upgrades specific to their operational needs — whether it’s private LTE, advanced Wi-Fi or other tailored solutions. This two-tiered approach ensures comprehensive coverage for the building while allowing tenants the flexibility to optimize their workflows.
At Airtower, we’ve seen that scope and budget play critical roles in tenant decisions. In some cases, tenants opted against leases because all in-building wireless technology needed to be addressed. In other scenarios, landlords who had previously invested in cellular upgrades expanded those systems with more antennas and coverage units during tenant turnover.
Because all businesses and buildings are unique, there’s no one-size-fits-all model for cost sharing. But incorporating connectivity discussions and shared investment into lease agreements benefits everyone involved.
DETERMINING WIRELESS SOLUTIONS AND WHERE TO START
When evaluating a property, start by running a speed test on your phone to get a baseline for cellular performance. Ask about available fiber infrastructure and whether cellular signal boosters or DAS are already in place or can be added. Most importantly, work with your tenant rep to include cellular and DAS requirements in your lease to avoid costly surprises down the road. Engaging early and asking the right questions helps ensure the space is equipped to meet modern connectivity demands.
