Firms go west for 'disaster recovery' space.

Today's heightened level of security has touched virtually every major industry--from travel and tourism to environmental firms and trade companies. To combat the growing fears of future terrorist attacks, many of these industries are now investing increasing funds to ensure employee safety and maintain business continuity.

No industry may be more affected than financial institutions such as banks, insurers and investment services--particularly those involved with major money markets. Due to their high profile status, these firms are viewed as primary targets for terrorist activity, and the federal government has issued recommendations to ensure they maintain operations in the face of an attack or natural disaster.

One major step financial firms are taking to increase security and develop business continuity plans is to establish backup headquarters which serve as insurance against terrorist attacks. These "disaster recovery" centers spurted immediately following September 11th, lost some momentum in the months following the disaster, but have resurfaced recently as the threat of new terrorist attacks has escalated.

These fully-equipped remote locations act as alternate locations where business can operate across multiple power grids and house web and database servers. Essentially, these facilities enable companies to be up and running with a flick of a switch and provide a safe place to store valuable data and allow businesses to have uninterrupted power and network access during catastrophic times--a valuable asset to those companies operating in conjunction with trading markets and electronic communication networks.

Office centers in suburban New Jersey have proven to be prime candidates for "disaster recovery" facilities for companies with prime operations in the Metropolitan New York area. There has been a noticeable increase in the number of Manhattan and Jersey City-based corporations who have identified the central New Jersey marketplace as a prime destination to set up remote offices.

Here, they can occupy space that is distant enough from their main headquarters so it won't be effected in the event of attack, yet are still close enough to relocate employees. This area also offers buildings already equipped with the type of upgraded technology--such as high-speed internet access and state-of-the-art telephone systems needed for business continuity and efficiency.

Larken Associates is designing commercial office properties as remote locations in its complexes in Hunterdon, Mercer, Warren, Morris and Somerset Counties.

These spaces range in size from 1,500 to 50,000 square-feet and lease from $6 a square foot, triple net.

Two corporations who plan to utilize space exclusively as disaster recovery centers have recently signed leases.

These centers allow tenants to take advantage of "built-to-suit" programs where they can take a hands-on approach in tailoring the layout of back-up centers to meet their existing needs.

And the locations are "far enough west to be virtually unaffected should an incident occur.

VICTOR KELLY VICE-PRESIDENT, RAIDER REALTY