Managed Wi-Fi Smart Building Considerations During Active New Construction Project

Client Review:

The Client desired independent assistance in evaluating expense vs. revenue of transitioning from a traditional retail “choice” model towards an Owner-installed, managed Wi-Fi model. Many multifamily developers are considering this approach as critical infrastructure to increase NOI, deliver a vastly improved resident experience and prepare for advanced smart apartment technology throughout the property.

For this particular client, the questions in their request included:

• From a low voltage perspective, what sets Managed Wi-Fi apart from a typical multi-provider “choice’ model?
• What elements of our low voltage design would need to change?
• Do we still have time to plan for and install it?
• How much additional cost should we expect?
• What is the anticipated ROI?

To start the analysis, RealtyCom Partners investigated the low voltage plans and had multiple discussions with the Client to understand the needs and desires for the development. We learned the main challenge our client faced was budgeting for a robust Owner network. (Common area, building systems and resident services must all be supported by infrastructure installed either by Owner or the Service Providers). These costs are hard to pinpoint as they increase or decrease depending on the desired level of integration, smart features and associated network attributes.

As these systems and responsible parties change during the evolution to a Managed Wi-Fi network, the Low Voltage design effort must change as well, adding yet more costs and variables to an already complicated analysis. Moreover, the highly technical and financial information needed to be communicated in an easy-to-understand way to assist the client in deciding on the best path forward.

The Work:

RealtyCom Partners developed a Managed Wi-Fi Evaluation and Recommendation Report which addressed Client questions and created a platform to relay information that could be used to develop a consensus among stakeholders on how best to move forward. The report included the following component parts:

1. Definition of Managed Wi-Fi and deployment methods
2. Benefits and Drawback of Managed Wi-Fi to the resident experience, property management, and financial considerations based on anticipated proposals from Service Providers
3. Basis of Design – A design narrative fully describing the attributes of the Managed Wi-Fi installation
4. Low Voltage Design Implications –a review of the design implications and impacts of a Managed Wi-Fi deployment to the current traditional design package
5. ROM – Rough Order of Magnitude outlining the additional Owner development costs associated with the adoption of a Managed Wi-Fi approach to telecom services
6. Detailed RFP process for soliciting and negotiating formal Service Provider proposal(s) – a process that would take place after Client’s decision on the type of deployment desired

The Results:

• RealtyCom Partners completed a thorough review of current low voltage design and along with preparation of Rough Order of Magnitude, the client understood impacts to LV design and associated costs to transition to Managed Wi-Fi.
• RealtyCom Partners presented an underwriting model to our client that illustrated a 10x improvement in ancillary income by moving to Managed Wi-Fi.
• RealtyCom Partners provided thoughtful options for the client’s low voltage design to provide options for future flexibility.
• RealtyCom Partners negotiated several options with different providers and the client ultimately decided on Managed Wi-Fi.