In the United States, recent estimates suggest that of the 750,000 multi-tenanted office buildings, only 10,000 are "wired for broadband." (Broadband generally being defined as transmission speeds in excess of 500 kilobytes per second.) In Manhattan, high-speed Internet access now ranks at the top of the list of marketing features for new space-ahead of air-conditioning and concierge services. The huge potential of wide bandwidth is just beginning to create excitement in the European property market.

The union of cellular technologies and the internet created by the advent of Wireless Application Protocol has opened up a host of new workspace possibilities. In response to this revolution in communications mobility, the market will focus on how to create desired environments through new concepts in space management and design.

The greatest challenge is to transform existing real estate to a state of e-readiness. The value of the riser-vertical shafts that carry cables and conduits-is becoming evident. Landlords may allow several different companies to wire a building through the riser: tenants then benefit from competitive pricing while the landlord benefits from sharing revenue with the supplier.

Cyber-savvy landlords will also begin to leverage the value of their rooftops to capture a share of telecommunications revenue. This is leading to the formation of specialist companies to negotiate master leases of roof rights from building owners in order to sublease them to wireless operators.

To target information technology companies, media companies and incubator e-commerce companies, developers will take advantage of cost-effective fringe locations to create niche areas of technology-rich buildings. First-to-market with the development of new e-geographies and technology clusters, could well achieve a sustainable advantage in the sector.

On the distribution front, we can expect to see the development of large, centralized, high-tech facilities along with smaller, neighborhood-based, people-intensive fulfillment centers.

The building as the 21st century business portal
The first step in an e-strategy is to provide contractual flexibility. The successful property player won't sell buildings or even fixed space: instead they will provide service, flexibility, reliability, speed and access. The profit for the operator and benefit for the tenant are in the packaged offer, not merely the building. Another key characteristic of an e-ready portfolio is having technology rich essentials such as broadband, wireless and/or fiberless connections for voice, data and video.

Embedded technologies and extreme contractual flexibility give real estate the potential to be the 21st century business portal. The fulfillment of its new role as a flexible, innovative asset, however, may be driven by new kinds of alliances, leaving slower, traditional players with the onus of squeezing profits from inflexible, inefficient buildings.

Empowering the Future
Jones Lang LaSalle has partnered with several telecommunications companies to provide property owners and occupants with customized broadband and e-business solutions. We have formed alliances with: Urban Media, which supports an array of e-business applications and free broadband access; Winstar Communications, which has an expansive fixed wireless network; and eLink Communications, which has a strong track record of providing building owners with broadband internet and telecommunications services and providing businesses with broadband customer service. We are also working with Commslogic, a leading IT Consultancy that specializes in the implementation of voice, data, and internet service infrastructure. For more information contact Mark Rose at +1 202 222 1630, mark.rose@am.joneslanglasalle.com