THINK DIFFERENT: How Grade-AI Fitouts Can Save Class B Offices
AI-ready infrastructure is the new wired office advantage
The growth of the AI workforce is beyond exponential, yet much of commercial real estate seems asleep at the wheel.
Thankfully, we’ve been here before—and this time, we already know the playbook.
Let me explain…
On April 30, 1993 (just over 30 years ago), the World Wide Web was released into the public domain.
It changed everything.
Including office space.
By the early 2000s, offices in New York that were wired for high-speed internet were commanding $5–$10 more per square foot—roughly 10–20% above market.
Tenants in media, finance, and tech were willing to pay a premium for resilient, high-performance internet. In a digital-first economy, connectivity became a true commercial advantage.
But what’s often overlooked is what it meant for Class B offices.
By adding internet infrastructure, many of these buildings effectively upgraded themselves into Class A assets. Some forward-thinking landlords went further, converting their buildings into internet exchanges or carrier hotels (early data centers) commanding rents that far outpaced both traditional Class A and their previous Class B earnings. The most famous of these is One Wilshire, a former office which has become one of the most vital carrier hotels in the western United States.
The Next Infrastructure Upgrade
The same opportunity is emerging again—with AI.
Progressive tenants across industries (finance, legal, tech, biotech) are racing to implement AI to gain a competitive edge. But there’s a catch: most AI services run in distant, third-party clouds. For blue-chip firms handling sensitive data, off-site compute is often a non-starter.
This creates a powerful opportunity for commercial landlords.
Just as the wired office became a leasing differentiator 20 years ago, AI infrastructure—onsite compute—can now do the same. Landlords who offer “compute-as-an-amenity” stand to secure long-term leases at a premium, attract higher-caliber tenants, and reposition underperforming assets.
Class B’s Second Chance
In practice, this means installing small AI-ready data centers (along with resilient power infrastructure) directly in the building—whether leased in totality to tenants or white-labeled as a managed service. Maintenance, uptime, and cost-sharing models can be tailored per building, but the value proposition is clear.
For Class B offices—especially those facing vacancy or obsolescence—AI retrofits offer a genuine second chance.
For the smart, this is a rare moment to move upmarket while accelerating decarbonisation. For the truly visionary, this is an opportunity to decarbonise, move upmarket, and turn yesterday’s stranded asset into tomorrow’s mission-critical infrastructure.