Data concerns taking priority.

Many companies have begun to make long-term data back-up and disaster recovery plans a higher priority in the aftermath of the events of Sept. 11, and there appears to be a greater focus and urgency being placed on investing in high-tech facilities by corporate real estate executives now that the unthinkable has proven very much a reality.

The truth is, investing in data back-up and recovery facilities has always been a wise choice, as any company that has ever been faced with a temporary interruption of access to or permanent loss of important data or records can attest. In today's fast-paced world, even a few hours without access to this important data due to a power outage or telecommunications breakdown can cost millions of dollars in lost business.

Many firms are realizing that the best facilities to achieve their data back-up and disaster recovery goals already exist, with many available at a fraction of the cost of just a few years ago. These are the same buildings originally revamped to accommodate technology-based businesses during the Internet boom. Since the decline in high-tech industry, many "Telco" properties were converted for other uses, however, the "best of the best" are once again hot commodities in the real estate market. These ideal back-up facilities are now attracting a wide range of tenants, including financial institutions and law firms, both data intensive industries whose livelihood depends on access to daily records and accounts.

This rising trend is clearly seen at The New York Telecom Exchange@75 Broad, where a $30 million investment in back-up power and data systems clearly paid off following the attacks. Companies housed in the facility were never without power, phone or telecommunications. In fact, JEMB's powerful network of generators at 75 Broad helped ease the strain on Con Edison's power grid when we were asked to "flip the switch" and turn them on immediately following the terrorist attacks to keep neighboring buildings from losing power. Now many firms are making disaster recovery arrangements to insure the same level of protection that our tenants experienced immediately following the disaster.

The recent decline of many of the dot.com companies in the inevitable technology shakeout that occurred after the late-90s boom in this area has created a unique opportunity for many corporate real estate executives to quickly get up to speed in the data back-up and disaster recovery arena. Of course, not all telecom properties were created equally, and the finest of these facilities will likely be the first to go. However, companies such as JEMB Realty that made carefully planned and executed upgrades to their properties with telecom tenants in mind can now offer traditional office users the latest in data back-up, telecommunications and disaster recovery facilities at a fraction of the cost.