When commercial property is bought, the building is examined from every angle. Legally, financially and technically. The technical due diligence often describes the condition of the roof, the façade and the installations in great detail. The digital infrastructure usually gets one line: "fibre available".
That is a risk. Because what you need to invest after the purchase to bring the building up to standard digitally is then not reflected in your offer.
Why digital is often missing
A technical due diligence is usually carried out by building surveyors and building services consultants. They know the structure, the climate installation and fire safety. Networks, WiFi and cybersecurity often fall outside their field. Not because they think it is unimportant, but because it is a different specialism.
On top of that, the digital side is hard to see. The cables are in walls and ceilings. The WiFi works, or it does not, and you only notice once the building is in use.
What you do want to know
A digital due diligence answers questions such as:
- The connection. Is there fibre, how far does it run, and is there a second connection?
- The cabling. What cable is installed, in what condition, and is it documented? Replacing old CAT5e is a sizeable job.
- The rooms. Are the technical room and the patch cabinets good enough, or does something need to be done?
- WiFi and mobile coverage. Does it work where people sit?
- Building systems. Which systems are connected to the network, and are they properly shielded?
- Contracts. Which contracts are running with providers and suppliers, and do they transfer to the new owner?
- Agreements with tenants. Who is responsible for what? Is that recorded, for example in an IT Demarcation List?
Why it matters for value
For tenants, digital quality is becoming more and more important. A building that lags behind digitally is harder to let, or first requires an investment. That affects the return and the value. We also wrote about this on our page for valuers.
If you know in advance what is needed, you can factor it into your offer and your investment plan. If you do not, you only find out when the first tenant complains.
Also for sales and refinancing
A digital due diligence is not only for buyers. As a seller, you can use an IT-Label to show what your building offers digitally. That prevents discussion during negotiations. And when refinancing, it helps to be able to substantiate the condition of the building.
For portfolios
Do you own several buildings? Then it is useful to assess them in the same way. With one scale from IT1+ to IT5 you can see at a glance which buildings score well and where investment is needed. Read more on our page for investors.
How we approach it
We walk through the building from the meter cupboard to the roof, measure where people work and review the documentation and contracts. You receive a clear report: what is there, how it performs, and what is needed to reach the desired level. The report is written so that non-technical readers can understand it too.
Planning a purchase or sale soon? Get in touch or request a digital due diligence straight away.