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WIRED

The State of OfficeConnectivity 2015

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Introduction and Methodology

■ Between January and April 2015WiredScore fielded an online surveyon the state of office connectivityin the United States.

■ A total of 444 respondentsattempted the survey.

■ The aim of the survey was tounderstand attitudestowards office connectivity.Survey questions were centered aroundthe role connectivity plays in day-to-daywork understanding the office worker’sperspective on the Internet connectivityof their work environment.

■ The survey was split and analyzedbetween two distinct groups:� Decision Makers – respondents

who had helped their current or former company search for office space (35%).

� Office Workers – those who had not been involved in searching for office space (65%).

■ The survey results were analyzed byRobust Insight Limited, an independentmarket research consultancy.

WiredScore is an international real estate advisory that works with landlords, brokers, and tenants to identify and promote buildings with great technology offerings. We own and operate the Wired Certification program, the first ever rating system for Internet connectivity in office buildings, with the goal of ensuring that all businesses large and small can find office space that meets their connectivity needs. Our Wired Certification program has certified over 175 million square feet consisting of over 330 Wired

Certified office properties – properties that are leading the charge to make sure they are wired with the best broadband Internet connectivity for their tenants.

Learn more: visit wiredscore.com or email info@wiredscore.com

WIRED

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Respondent Profile

Primary business activity

Office square footage

Number of employees in the company

25%

26%22%

27%

10-4950-249

250+LESS THAN 10

0 - 5,000 sq feet 36%

5,001 - 15,000 sq feet 20%

15,001 - 50,000 sq feet 16%

50,000 sq feet + 28%

Marketing/Advertising/Entertainment 17%

Services/Consulting 13%

Banking/Finance/Accounting 12%

Insurance/Real Estate/Legal 12%

Education 7%

Wholesale/Retail/Distribution 4%

Computer/Network Services/Consultant 3%

Construction/Architecture/Engineering 3%

Manufacturing and Process Industries (Non-computer) 3%

Online Retailer 3%

Federal Government (including military) 2%

Research/Development Lab 2%

Data Processing Services 1%

ISP or ASP 1%

Medical/Dental/Healthcare 1%

State/Local Government 1%

Communications Carrier 1%

Computer Manufacturer 1%

Computer Related Retailer/Wholesaler/Distributor 1%

Other 12%

Respondents to the survey represented a range of industries, company sizes and office sizes.

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Executive Summary Major findings of the first-ever State of Office Connectivity Survey include:

■ For Decision Makers in management, connectivity is considered the third most important influencing factor when searching for office space, behind cost and location.

■ Decision Makers consider connectivity more important than transportation, leasing options, management, amenities, views and environmental sustainability when searching for office space.

■ In an era when web hosted email, cloud-base servers and use of VOIP services is more common than ever, high-speed, reliable Internet connectivity is considered critical to conducting business in the modern world.

■ For Office Workers, connectivity is by far the most important factor influencing their office experience.

■ While three out of five of Decision Makers discussed telecom and IT services in their last office lease negotiation, less than half say their landlord or property manager provided detailed and accurate information on the Internet and voice services available in their building. And while over a third of Decision Makers received guidance from their property manager when selecting Internet and voice services, a quarter received no guidance at all.

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Survey results

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High -speed, reliable Internet is critical to modern business

Do you believe that having high -speed, reliable Internet connectivity is a critical factor when it comes to choosing office space / your office experience?

■ Almost all respondents (97%) believe that having high-speed, reliable Internet connectivity is critical to their day-to-day work.

■ Office Workers (99%) are more likely than Decision Makers (94%) to feel that Internet connectivity is critical.

“Most of our work is done over the cloud. Interacting, transferring, uploading and downloading are critical to productivity and seamless work.”Program Manager, CT

97%YES

94%99%YES YES

DECISIONMAKERS

OFFICEWORKERS

ALL RESPONDENTS

“As a Public Relations professional in San Francisco, having the ability to receive and respond to urgent requests from clients or media is critical to our businesses success. Without high-speed Internet, our job would be impossible as nearly all communication is done via e-mail.”Client Staff Assistant, CA

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Office Workers

Decision Makers

Critically important

Very important

Moderately important

Slightly important

Not at all important

31%

24%

33%

9%

4%

78%

3%

18%

1%

0%

Internet connectivity is critical for everyone, but it’s even more important to Office Workers than Decision MakersHow important was the connectivity of the building in your office search / to your day to day work?

■ Over 4 out of 5 respondents (84%) consider Internet connectivity as either very or critically important.

■ Office Workers are even more likely than Decision Makers to consider Internet connectivity as critically important (78% vs. 31%).

� Those working in large organizations (250 employees or more) are significantly more likely than those working in small organizations (less than 10 employees) to consider Internet connectivity as important (97% vs. 80%).

84%VERY/CRITICALLY IMPORTANT

61%23%

10%

4% 1%

Very important

Critically important

Slightly important

Moderately important

Not at all important

All respondents

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Connectivity is the most important factor for offices

Please indicate the level of importance for each factor influencing your search for office space / your experience in your office.

“I’m in digital advertising so if I can’t access current news and competitor advertising I essentially can’t do my job. ”Senior Strategist, NY

■ Connectivity (54%) is rated as the most important influencing factor, ahead of Transportation (36%), Location (27%), Management (12%), Amenities (6%), Views (5%) and Environmental Sustainability (4%).

■ Those working in large organizations (250 employees or more) are significantly more likely than those working in small organizations (less than 10 employees) to rate Connectivity as extremely important (64% vs. 42%).

Very important

Extremely important

Slightly important

Moderately important

Not at all important

All respondents

Connectivity

Transportation

Location

Management

Amenities

Views

Environmental Sustainability

1%

3%

2%

2%

9%

6%

14%

5%

4%

11%

26%

14%

27%

2%

12%

16%

22%

36%

40%

42%

37%

40%

45%

38%

19%

31%

18%

36%

27%

12%

5%

6%

4%

31% 54%

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Decision Makers consider Cost, Location and Connectivity as the three most important influencing factors when searching for office space.

Please indicate the level of importance for each factor influencing your search for office space / your experience in your office.

■ Decision Makers consider Cost (50%), Location (36%) and Connectivity (33%) as the three most important influencing factors when searching for office space.

■ While Office Workers consider Connectivity (65%), Transportation (39%) and Location (22%) as the most important factors influencing their office experience.

Office Workers

Decision Makers

*NOTE: Percentages based on those who rated extremely important

33%65%

Connectivity

N/A50%

Cost

31%39%

Transportation

N/A21%

Leasing Options

36%22%

Location

5%7%

Amenities

11%13%

Management

2%6%

Environmental Sustainability

5%5%

Views

N/A15%

Layout of the space

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When searching for office space, the majority of Decision Makers brought up telecom and IT services in their last office lease negotiation

■ Those working in larger organizations (250 employees or more) are more likely to have discussed telecom and IT services in their last office lease negotiation than those working in small organizations (less than 10 employees) (78% vs. 53%).

■ And they tend to be more satisfied with their Internet (79% vs. 62%).

60%

35%

5%

Yes

No

Other

Decision Makers

In your last office lease negotiation, did you bring up telecom and IT services with your landlord?

“Other” responses included asking the broker, asking the previous tenant, or don’t know.

78% 53%Large organizations

(250+ employees)Small organizations (<10 employees)

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Decision Makers have little information to go onwhen discussing connectivity in their office search

■ Less than half of Decision Makers (49%) stated their landlord or property manager provided detailed and accurate information on the Internet and voice services available in their building.

■ And while over a third of Decision Makers (36%) received guidance from their property manager when selecting Internet and voice services, a quarter (27%) received no guidance at all.

Did your landlord or property manager provide detailed and accurate information on the Internet and voice services available in your building?

49%42%

Other 10%

YESNO

Decision Makers

When selecting your Internet service and voice provider for your office or company, did you receive guidance from any of the following?

Property Manager

Leasing Agent

Telecom Consultant

Another tenant in the building

Riser Management Company

Other

None of the above

36%

16%

5%

25%

7%

27%

1%

“Other” responses included Don’t Know and Didn’t Ask

Decision Makers

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1 out of 6 Decision Makers cite poor connectivity as a reason to terminate an office lease

Have you ever terminated or chosen not to renew an office lease? What was the reason that you terminated or chose not to renew your office lease?

Over half of Decision Makers (56%) have at one time chosen to terminate or not renew an office lease. 1 out of 6 (16%) did so because of

poor Internet connectivity.

Outgrew the space

High cost

Poor management

Bad location

Poor connectivity

AmenitiesInflexible leasing

optionsBad views

Poor choice in transportation

Poor environmental sustainability

57%

27%

16%

33%

21%

12%

12%

5%

5%

1%

56%

44%

Yes

No

Decision Makers

Note: respondents could select more than one answer option.

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Connectivity outages and slowness disrupt most Office Workers at least once a month

■ Two-thirds (64%) are disrupted by connectivity issues at least once a month. And 4 out of 10 (39%) are disrupted on a weekly basis.

■ Office Workers are more likely than Decision Makers to have their work disrupted by connectivity issues at least once per month (66% vs. 61%).

“Slowness and outages prevent users from conducting meetings and using VoIP based phone systems, effectively cutting communications.” IT Support, NH

“A building, especially an office building, should have outstanding wireless Internet anywhere you turn, even if you are in a coat closet.” Account Manager, NY

How often do connectivity issues disrupt your work?

All respondents

More than twice a week

Twice a week

Once a week

Once a month

Once every 6 months

Once a year

Never

15%

14%

20%

10%

26%

5%

10%

Office Workers

Decision Makers

More than twice a week

Twice a week

Once a week

Once a month

Once every 6 months

Once a year Never

14%

10%

15%

26%

20%

5%

9%

16%

8%

12%

25%

20%

7%

12%

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Office worker productivity hinges on reliable Internet

■ Office Workers are three times more productive when the Internet is high-speed and reliable compared to when it is slow or out.

■ On average Office Workers rate their productivity as 9 out of 10 when the Internet is high-speed and reliable and 3 out of 10 when the Internet is slow or out.

■ 61% of Office Workers stop working or waste time on their mobile phone when the Internet goes down.

“Internet outages make it impossible to do my work as all requests come in via e-mail and require a lot of data pulling from the Internet.”Client Staff Assistant, SF

“Without reliable Internet, employees have to get creative about what to work on offline, until they are able to get back Internet access.”Office worker, NY

On a scale from 1 to 10, how productive are you when your is Internet is…

High-speed and reliableSlow or out

22%

<1%

19%

0%

20%

12% 11%

0% 0% 1%

7%2%

6% 4%2%

18%

<1%

32%

43%

<1%

1 2 3 4 5 6 7 8 9 10

= least productive = most productive

When the Internet goes down at work, what do you do?

63%

21%

40%

26%

21%

5%

Work on things that don’t require connectivity

Take a break

Try to do work on my mobile phone

Take a call

Waste time on my mobile phone

Other

Note: respondents could select more than one answer option

“Other” responses included Contact IT, Eat a Snack, Find a Coffee Shop, and Go Home.

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The Internet is critical to Office Workers’ daily activities ■ Over half of employees (57%) feel that Email/Chat

are the work activities they do that require the most Internet bandwidth.

■ While 44% reported General Web Browsing and 43% said Moving Files To/From The Cloud take up the most bandwidth for them.

■ Those working in large organizations (250 employees or more) are more likely than those working in small organizations (less than 10 employees) say that Email/Chat takes up most of their bandwidth (74% vs. 48%).

■ While respondents working in small organizations are more likely than those working in large organizations to select VOIP Calls (25% vs. 12%) or Programming (15% vs. 5%).

Which work activities do you do that require the most Internet bandwidth?

57%

24%

33%

8%

44%

20%

43%

14%

24%

Email / Chat

General web browsing

Moving files to/ from the cloud

Video conferencing

Crunching data

Saas (Software As A Service) or online collaboration tools

Watching videos

VOIP calls (Voice Over IP)

Programming

“Everything I do involves communication with partners via email. My company also uses Google Docs as a way to share all of our documents and doing research on the Internet is key to what we do. Without the Internet, I cannot do my job.”Office worker, NY

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Internet connectivity is a competitive advantage for businesses

■ Over half of Decision Makers (55%) say that having next-generation high-speed Internet gives their business a competitive advantage.

■ Decision Makers working in offices of 15-50,000 square feet (65%) or employing 10 to 49 employees (63%) are the most likely to believe next-generation high-speed Internet services is an important or critical competitive advantage to their business.

Slight advantage

Not at all an advantage

Moderate advantage

Important advantage

Critical advantageImportant or critical advantage

13% 15% 17% 31% 24%

55%

Do you believe that having next-generation high -speed Internet services is a competitive advantage to your business?

“All of our documents are connected by a server that requires fast Internet. If our Internet fails, it means that we are completely paralyzed and unable to work.”Intern, PA

“Connectivity is a big factor. We are an intranet company and rely on the Internet to have calls with clients and do demos. Slow connections and interruptions are bad for us.”Business Architect, NY

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Learn more: visit wiredscore.com

WiredScore is an international real estate advisory that manages and operates the Wired Certification program. Launched in 2013 in partnership with Mayor Michael Bloomberg in the City of New York, the Wired Certification program evaluates and certifies the quality of broadband infrastructure in office buildings, helping building owners with best-in-class internet infrastructure promote their buildings as cutting-edge in connectivity.

The official standards for Wired Certification were advised by a New York City-appointed board of leaders in real estate, technology, and telecommunications. WiredScore’s Wired Certification program has certified over 175 million rentable square feet, consisting of over 330 Wired Certified office properties that are leading the charge to encourage transparency and ensure their office buildings are wired with the best connectivity for their tenants.

WiredScore also manages a public database that provides up-to-date detailed connectivity data on commercial office buildings. With information on over 700 commercial buildings including both Wired Certified and non-certified buildings, the WiredScore database is a tool for businesses to help guide better-informed relocation decisions based on internet and telecom access.

About WiredScore

or email info@wiredscore.com

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