You Can’t Underwrite What You Can’t See
Spreadsheets don’t show it. Lease abstracts won’t flag it.
But buried beneath every building’s surface is a hidden lever that directly impacts cap rate: infrastructure intelligence.
“Valuation gains increasingly come from operational leverage—not just rent.”
— Peak Property Performance
The Investor Blind Spot: Outdated Infrastructure Erodes Cap Rates
Let’s look at the data:
- A McKinsey-led digital twin case study showed 45–70% cost reduction potential when infrastructure systems are integrated and automated. (mckinsey.com)
- ENERGY STAR buildings show higher NOI, faster lease-ups, and lower risk profiles.
- At “The Edge” in Amsterdam, smart building systems led to 70% energy reduction and asset premium valuation. (green.org)
Real-Life: The Acquisition With a Digital Twist
An investor client was eyeing a 14-building acquisition—great location, stabilized leases, solid tenant base. But a due diligence run with OpticWise revealed:
- Fragmented vendor stack
- No building-wide network
- Cyber risk from unsecured IoT points
Cap rate was re-evaluated post digital retrofit plan. Result? NOI projected up 11%, cap rate tightened, and valuation jumped $5.7M.
Why Infrastructure Is the Next Net-New Asset Class
If you're not evaluating:
- Energy analytics
- Embedded Wi-Fi
- Unified access control
- Predictive maintenance alerts
… then you’re not valuing the asset fully.
Investor Action Plan
- Integrate a Digital Infrastructure Layer into your underwriting checklist
- Ask: Can tenants connect and operate Day 1?
- Assess: Are ops teams flying blind or empowered?