Influx of technology reshapes real estate industry.

The influx of technology has undoubtedly reshaped today's real estate industry. An onslaught of companies with high technology needs, from Internet start-up companies and telecommunications firms to publishing and law firms, has forced Manhattan property owners and managers to adapt to a whole new breed of office tenants with their own distinct demands. And, while the market is tight enough for owners to have the luxury to pick and choose their tenants, new occupants entering prime office spaces throughout Manhattan are not only expecting, but demanding the highest level of service and amenities and a more hands-on approach to the management of their specialized, high-tech requirements.

Tenant demand for high-tech amenities and "smart buildings" is at an all-time high and, as we move into the new millennium, owners will have to upgrade their buildings in order to sustain a competitive edge. This "smart building" trend is sweeping the industry, entailing such improvements as the installation of T1 and T3 lines, retrofitting buildings for enhanced telecommunications and Internet capabilities, upgrading building operating systems such as elevators, HVAC and Class-E systems and ensuring the Y2K compliance of all critical building systems.

For example, at 568-578 Broadway (The Prince Building), new media and technology tenants are taking advantage of such renovations and the building's high-tech capabilities, which allows them to install T1 lines for faster information exchange and in the future, T3 lines as well. The building's state-of-the-art fiber optic system, which has become a hub site for Bell Atlantic's fiber optic operations, has given the property an edge over the competitionu

In many cases, tenants - both small and large - cannot afford to spend the dollars it takes to install the necessary upgrades themselves in older, unequipped buildings. Therefore it is imperative that property managers and owners take the proper steps now to ensure that their properties remain competitive not only through the next century, but survive this increasingly high-tech economy.

Jonathan P. Switzer, Senior Managing Director and Bonnie Shapiro, Property Manager, Winoker Realty Company, Inc.