Until recently, most work took place in city centers. People spent hours commuting from downtown areas all across the country. Large office buildings housed hundreds, if not thousands, of employees, and local businesses emerged to support the workforce.
Today, the vacancy rate for office buildings in urban and suburban areas averages 17.3% and 16%, respectively. However, the rate varies significantly based on location. For example, Manhattan has a vacancy rate of about 10%, while Phoenix’s rate is 31%. Locations that still offer work-from-home policies tend to have lower occupancy rates than those following the return-to-office philosophy.
This sea-change in the business world leaves commercial real estate property owners looking for ways to reinvent their commercial spaces. With less business traffic, cities are also exploring ways to make their downtowns vibrant destinations for residents and visitors alike. Working together, cities and commercial property owners can create flexible spaces using emergent technologies like Power over Ethernet (PoE).
What is Power over Ethernet (PoE)?
PoE technology enables Ethernet cables to transmit both electrical power and data simultaneously. These cables comprise two or four twisted pairs of four or eight wires. Using one or all of these twisted pairs, Type 4 PoE delivers up to 100 watts of power and data at speeds above 1000 Mbps. This technology powers an array of PoE-enabled devices, such as:
- IP Security Cameras
- Digital Displays
- Lighting
- Wireless Access Points
- Point-of-Sale Devices
- Laptops
- Monitors
- VoIP Phones
With the expanding prevalence of Internet of Things (IoT) devices, PoE technology enables companies to deploy IoT endpoints in diverse locations, even when electrical power is unavailable.
How is PoE Being Used?
PoE technology has existed for decades; however, recent advances have increased its power output and transmission speeds to extend its usage in smart cities and building environments. The technology can also support data collection and centralized environmental control, making it a sustainable solution for power distribution. PoE devices connected to an uninterruptible power supply can even operate during power outages.
Information Kiosks
Office buildings that repurpose their spaces for mixed-use, such as restaurants and retail outlets, can quickly deploy PoE-enabled kiosks in lobbies or common spaces to inform and direct customers. Should kiosks need to be added or relocated, the process is as easy as connecting an ethernet cable. You’ll even avoid the delays that complex installations and renovations often cause.
Restaurants could place kiosks in building lobbies, allowing customers to make dinner reservations more efficiently. Customers can browse menus and check availability while shopping or enjoying other activities. Commercial properties offering self-service reservations will be able to provide their tenants with increased foot traffic, which is a huge selling point. The convenience provided by such services allows potential diners to avoid the frustration of contacting multiple establishments in search of availability.
Retail Engagement
Leading brands like Levi’s are moving their digital experiences into retail locations. Levi’s showcases their new products and allows customers to design customized clothing using oversized, interactive displays. As retailers look to engage more with their in-store customers, they will need flexible power and data access.
Older office buildings may need more infrastructure to support these digital experiences. With PoE-enabled displays, lights, and surveillance devices, property owners can cost-effectively retrofit their buildings to attract more customer-facing retailers. Flexible placement allows retailers to create stores that reflect their brand and image.
Building Controls
PoE technology also brings smart devices into an Ethernet-connected environment. Property managers can control lights, badge access, and thermostat systems by placing PoE-enabled sensors throughout their buildings. Sensors can feed data to a central location for improved energy use.
As tenants come and go, managing the sensors is as easy as reassigning the device to the network—there is no need to run new electrical wiring. The same applies to reconfigurable wireless access points, ensuring quick and comprehensive coverage for each occupant.
Tenants may need more space or want to downsize, requiring modifications that include relocating security cameras. Moving cameras can be time-consuming and costly if separate power outlets are necessary. To relocate a PoE-enabled security camera, you’ll only need to run a new Ethernet cable.
What Are the Benefits of PoE in Commercial Buildings?
PoE technology gives commercial property owners the flexibility to retrofit older buildings. It provides the ability to modify spaces in newer buildings to support the changing landscape of the American workplace. PoE lowers installation and maintenance costs while future-proofing the infrastructure for increased power and data demands.
Simplified Installation
One of the most remarkable features of PoE is that electricians are not required. The low-voltage power involved reduces the need for the conduits and insulation required by higher-voltage installations. Most network administrators can install, relocate, or upgrade PoE devices connected to a network. With self-managed PoE switches on the market today, administrators can reduce the number of billable hours spent monitoring unmanaged non-PoE switches.
Upgradability
The Institute of Electrical and Electronics Engineers (IEEE), which issues the standards for PoE technology, has maintained backward compatibility for a more cost-effective upgrade path. PoE injectors provide a more straightforward way for property owners to upgrade older installations to accommodate higher power levels. PoE splitters allow the addition of non-PoE devices to the same network. Flexible integration options ensure a maximum return on investment.
Added Cost-Savings
PoE technology costs less to install. There are no electricians to pay and no added wires to run. Where Ethernet cables exist, PoE is possible. When using PoE to centralize building controls, added sensors will lower the cost of operating and maintaining buildings. Network technicians can often install the equipment, reducing the cost of adding devices as requirements change. Because PoE technology can coexist with non-PoE devices, property owners can spread out the costs over time.
What a PoE-Enabled Future Means for Commercial Building Flexibility
Thanks to PoE, city skylines will no longer be littered with abandoned buildings. Through collaboration, city governments and property owners can redesign downtowns to become robust destinations where businesses can thrive. Imagine office buildings reimagined as hosts for dance studios, day spas, and flower shops.
Picture an office building becoming a one-stop shop for wedding planning. Bridal shops could sell wedding dresses on one floor, while cake designers could be on another. This layout could allow brides-to-be to visit multiple businesses on the same day. Add a spa for shoppers to relax after a long day of decision-making. Property owners could offer space for caterers to provide lunches for potential clients or repurpose a more open space as a studio, providing the happy couple with dance lessons. And don’t forget wine tastings hosted by local vintners. With PoE technology, repurposing a commercial building opens up limitless possibilities.
Versa Technology has been a leading provider of PoE technology since 1994. We are committed to exploring PoE, a technology limited only by the imagination. Contact us today for more information.
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