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Arizona Telecommunications & Information Council (ATIC)
Multitenant Building Telecommunications Access Study
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Appendix 4: Submitted Position Statements

Grubb & Ellis Company

Commercial Real Estate Views

Probably the most intriguing development we have witnessed in the commercial real estate field is the emergence of a new set of rules triggered by the increasing need for bandwidth and fiber capabilities. In the past the most important determining factor for tenants vacillated between location and cost per square foot. The old idiom of "location, location, location" was seen over and over again to be true as companies sought to find new or additional locations for their office or warehouse facilities.

Within the past 18 months, however, we have seen a real transformation in stipulations for new facilities from an owner/user perspective. The new paradigm seems to be "location, bandwidth, location." What is being touted now as the primary determinant is no longer the actual location itself, but rather the bandwidth capability of that site. Once a company verifies that the sites or buildings in question meet their required specifications, they then move on to determining which location they prefer. This has caused a ripple effect forcing building owners, developers, investors, property managers, and brokers to respond or get left behind.

Comprehensive maps of both existing and future fiber routes would be immensely beneficial if somehow the issue of trade secret confidentiality could be successfully overcome. At this point, it seems that no one is quite sure of what is available where; and the maps that are available are either outdated or incomplete. As companies strive to determine where they will be able to accommodate their intensive bandwidth requirements, this information would be worth its weight in gold."

Submitted by,

Jonathan A. Keyser, Senior Associate, High Tech Advisory Group
Grubb & Ellis Company, Phoenix, AZ

(602) 224-4410, E-mail: jonathan.keyser@grubb-ellis.com

Note: Grubb & Ellis Company (http://www.grubb-ellis.com/) is one of the largest and most respected full service commercial real estate firms in the world. Their high technology group specializes in working with technology & Internet related companies, helping them to deal proactively with their facilities as they grow and expand.

"Location, Bandwidth, Location."




Multitenant Building Telecommunications Access Study
PREVIOUS CONTENTS APPENDIX 4
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Excerpts from Selected Resource Documents