Net neutrality has fast become one of the most talked-about political topics—and for good reason. The potential impacts of ending net neutrality are significant, and commercial real estate isn't exempt. Office users—and office owners with branded Internet infrastructure—may see the most potential impacts if net neutrality goes away.
“It is a very relevant topic and it has become really politicized. Everyone loves the free Internet, but a lot of brands want free access to all of the bandwidth,” Jeff Rinkov, president and CEO of Lee & Associates, tells GlobeSt.com, adding that commercial real estate should pay attention to the discussion. “There is a potential impact. Right now, it is going to be so tough, and people are going to have to think hard about the fees that they are going to have to pay to access the Internet.”
In the last two years, some large office portfolio owners have developed and operated branded Internet services to provide tenants with seamless service from day one of the tenancy. Those types of services will likely become more and more common. “From the ownership side, I think that we will see large portfolio owners brand technology,” says Rinkov. “Those are some of the bigger challenges for tenants. There will always be the logistical challenges of moving furniture or people, but the access to robust and stable technology one day one of your move is the most important thing that you could hope for.”
Those owners, however, stand to see the biggest impact if net neutrality is terminated. “If office owners are going to be taxed or changed fees based on their access, I think it will affect them. If there are net neutrality fees that aren't adopted nationwide, it might also encourage people to move elsewhere,” says Rinkov. “I think that people are making decisions on where they will locate based on the quality of their Internet access.”
Additionally, net neutrality laws could be turned over to local governments, creating sanctuary cities with free Internet. In that event, some office users may follow the technology. “You could have a new definition of sanctuary city where a city doesn't charge for Internet,” says Rinkov.
While commercial real estate would see these ancillary impacts from the decision, Rinkov isn't particularly concerned. His prediction on the topic: “I think that in this country, we stay free Internet. I think that people will bombard their congress people, local assembly people and council people.”
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Kelsi Maree Borland
