IT infrastructure: the overlooked value driver in valuations.

A valuation works with market rent, vacancy, capital expenditure and risk. Digital infrastructure affects each of those assumptions. Yet it stays out of view in many valuations, because there is no reliable data on it.

The IT-Label changes that. It provides an independently assessed, comparable measure of a building's digital quality, from IT1+ to IT5. Not a value judgement, but factual input you can use to support your assumptions.

Where digital infrastructure affects value

The IT-Label does not replace a valuation. But the digital quality of a building influences several of the assumptions a valuer works with:

Value driver	How IT plays a role
Market rent	Tenants pay for a building they can use from day one. If the digital basics are missing, they expect a lower rent or a contribution to their fit-out.
Vacancy and letting period	A building that falls short digitally is harder to let to organisations that depend on IT. That can mean a longer letting period.
Capital expenditure	Outdated cabling, poor WiFi, no backup connection or no suitable technical room: these are investments that come on top. Better to know them in advance.
Risk and future-proofing	Digital technology ages fast. A building without room to grow faces higher costs to keep up, which affects the risk profile and the exit assumptions.
Regulation	New rules apply to building automation and to fibre-ready infrastructure in new builds and renovations. Non-compliance can mean extra costs.

More about the rules: IT and regulation.

What the IT-Label gives a valuer

• Independent data. Assessed on site by a certified partner, using a fixed method. Not an opinion of the owner or the seller.
• Comparability. One scale from IT1+ to IT5 for every building. Compare buildings in the same location or within a portfolio.
• Support for your assumptions. A score per component: Connectivity, Infrastructure, Performance, Scalability, Integration and Smart Building.
• Clarity about who pays. The IT Demarcation List records what the landlord provides and what the tenant arranges.
• Up to date. The certificate is valid for two years, so the information reflects the current situation.

How we work with valuers

Is there no IT-Label for the building you are valuing? Then we can map the digital condition with digital due diligence: what is in place, how it performs, which risks there are and a rough estimate of the investment needed. Clear, factual input you can include in your valuation report.

We are happy to work with valuation firms, for a single building or for a portfolio.

The IT-Label and our reports are not a valuation and do not state a value. They provide factual input about the digital infrastructure. The valuation and the conclusions remain the responsibility of the valuer.

The best place to start

The usual first step: Digital due diligence. See in advance how a building performs digitally, what the risks are and what it is going to cost.

Want to know more first? Read how the IT-Label works or see the six levels.

Also of interest

• Property owners: Show what your building offers digitally, instead of just promising it.
• Tenants: Know what you are getting before you sign.
• Investors: See the digital risks and investments before you buy.
• Real estate agents: A clear answer to the question: "What about the internet?"
• Operators: For business centres and flexible offices, good WiFi is not an extra. It is the product.