Week 3: The Digital Foundation of NOI – How Infrastructure Impacts Net Operating Income
Introduction
Welcome back to our 52-week series on digital transformation in commercial real estate. I’m Bill Douglas, CEO of OpticWise, where we help CRE owners transform their buildings into smart, revenue-generating platforms by reclaiming control of their data and digital infrastructures.
At OpticWise, we help property owners shift digital infrastructure from a cost center to a driver of revenue, efficiency, and tenant satisfaction. This week, we’re diving into the connection between digital infrastructure and the most important performance metric in real estate: net operating income (NOI).
These insights are grounded in my book, Peak Property Performance: Game-Changing AI and Digital Strategies for Commercial Real Estate (Fast Company Press, June 2025), which offers a practical, jargon-free roadmap that empowers readers to reclaim digital ownership, maximize NOI, leverage AI, and future-proof their assets in an increasingly competitive landscape.
The NOI Killer Hiding in Plain Sight
Net Operating Income (NOI) is the north star of every property investor. Yet while most CRE operators scrutinize their rent rolls, expense ledgers, and expense-related contracts, they overlook a critical factor: their digital infrastructure. Across portfolios, unmanaged tech costs quietly pile up through:
– Legacy ISP contracts and redundant circuits
– Various disconnected building. operations systems
– Manual troubleshooting and reactive support
– Hidden vendor fees from outsourced or inefficient integrations
These inefficiencies drain NOI without drawing attention. The digital foundation remains invisible—until it fails.
From Sunk Cost to NOI Lever
Digital infrastructure doesn’t have to be a sunk cost. When properly owned and operated, it becomes an NOI engine. OpticWise works with owners to implement a Building-of-Things® (BoT®) platform, enabling:
– New technology-driven services revenues
– Lower OpEx through centralized networks, systems, and automation
– Reduced insurance premiums due to better risk visibility
– Improved tenant experience, translating to longer leases and higher renewals
Peak Property Performance Perspective: The 5C™ Framework in Action
In Peak Property Performance we introduce the 5C™ Framework: Clarify, Connect, Collect, Coordinate, Control. Week 3 emphasizes the ‘Collect’ layer—aggregating building data into a centralized, owner-controlled repository. This allows owners to:
– Spot underutilized and disconnected systems
– Monitor data generation and collect it for future leverage
– Track systems and anticipate outages
Without data collection at scale, decision-making is reactive and blind.
Expanded Case Study: NOI Reimagined
Consider a 250-unit multifamily portfolio in the Southeast. The owner partnered to unify network infrastructure, regain control of systems and data, and activate new digital services.
Results within 12 months:
– Eliminated $3,400/month in third-party data, network, and support costs
– Added $22,200/month in recurring technology services revenue
– Improved tenant retention by 12%, with lease extensions rising significantly
– Reduced utility consumption through smarter operations
– Gained transparency into maintenance patterns and staffing needs
Total NOI uplift: $145,000+ in one year. No new construction. No renovations. Just digital infrastructure, optimized.
Strategic Takeaway
Real estate value is no longer dictated solely by physical improvements. In an AI- and data-driven economy, infrastructure includes the invisible systems that power operations and experience. Buildings without digital intelligence will be priced like outdated hardware.
Call to Action
Wondering how much NOI is hiding in your digital underlay? Book a BoT® Digital Infrastructure Audit with OpticWise and take control of your portfolio’s performance edge.
Andrew Stanton CEO Proptech-PR
Andrew Stanton Founder & Editor of 'PROPTECH-X' where his insights, connections, analysis and commentary on proptech and real estate are based on writing 1.3M words annually. Plus meeting 1,000 Proptech founders, critiquing 400 decks and having had 130 clients as CEO of 'PROPTECH-PR', a consultancy for Proptech founders seeking growth and exit strategies. He also acts as an advisory for major global real estate companies on sales, acquisitions, market positioning & operations. With 200K followers & readers, he is the 'Proptech Realestate Influencer.'
- Andrew Stantonhttps://proptech-x.com/author/andrew-stanton/
- Andrew Stantonhttps://proptech-x.com/author/andrew-stanton/
- Andrew Stantonhttps://proptech-x.com/author/andrew-stanton/
- Andrew Stantonhttps://proptech-x.com/author/andrew-stanton/
