How 5G is Impacting the Future of Commercial Real Estate

Commercial real estate experts are always keeping a close eye on emerging trends, especially in the tech space. Technology changes rapidly and in doing so, often causes a residual impact on business decisions and planning endeavors. 

Currently, the buzz in the air involves the emerging use of 5G, and this article will explore how 5G technology impacts the commercial real estate industry. You might be surprised to peek into the possibilities of 5G and see what the future holds.

5G and Its Role In Commercial Real Estate

To put it simply, 5G is an advanced level of wireless technology. It has transformational capabilities for commercial properties and businesses that depend heavily on wireless communications. 

Key Benefits of 5G for commercial properties:

Here are three reasons why 5G is leading the way in communication technology:

  • More rapid connections — Buffering times and overall speed are significantly improved. There is a noticeable difference between when something is sent and when it is received, making more fluid communication possible.
  • Much larger bandwidth — The flow of information is enhanced due to larger information processing. Think of a larger-sized pipe through which a higher volume of information can pass at one time.
  • ‘Smart Buildings’ — Just like there are ‘smart homes’, where technology systems are integrated into the residential property; commercial properties are transforming as well. 5G tech works cohesively with city-wide tech communications and inner office settings. This includes automating building security systems, synching virtual meeting rooms, hologram communications, and virtual reality applications.

The reality is that 4G/LTE technology is slowly phasing out over the next four or five years. As this happens, 5G will replace these systems and the communication tech space will become more reliant on 5G capabilities. Commercial real estate sales are likely to be impacted as ‘smart buildings’ rise in demand.

Systems that 5G Commercial Properties (‘Smart Buildings’) Connect With

Here’s a quick list of the different types of communication systems that smart buildings will be able to efficiently connect with.

  • Video gaming systems
  • Virtual reality / Augmented reality
  • Video streaming
  • Broadcasting (replacing radio and television frequencies)
  • Health tracking devices
  • Cloud data storage
  • City-wide tech; traffic lights, public transportation etc.
  • Self-driving vehicles
  • Environmental and agricultural technologies

How to Prepare Your Commercial Real Estate Investment

5G technology is something that will evolve more in the years to come and begin to integrate into buildings over time. It is not an instantaneous swap out of current technology systems. 

However, it is on the rise and thus important for commercial real estate owners to get prepared. As the convenience of synching this type of technology rises, more tenants will begin to demand this feature in the properties they lease. Leasing agreements will need to include terms and conditions for 5G the more it increases in the future. 

Taking necessary steps towards upgrading is going to become more important the closer we get to transition into this new dynamic of smart building technology. Commercial properties benefit from having their buildings analyzed for what steps and measures can be taken to prepare for this transition.

Plaza Companies is Phoenix’s Premier Commercial Real Estate Firm

As one of the top Phoenix development services companies, Plaza Companies has partnered with a diverse range of clients. We make it a priority to stay current on all trends that impact the future of the commercial real estate industry. 

Our team of experts ensures our clients’ highest standards are met. We provide customized commercial real estate services designed to target cost-efficient operations and build a strong ROI.

Contact us today to learn more about our development and commercial construction services.


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Whether you are looking to us for management, leasing or development services, we can help you find the perfect space. With over 40 years of experience, you can trust Plaza Companies to assist you with your real estate needs.

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