New class of real estate facility requires unique expertise.

Many real estate owners and developers have jumped on the telecommunications bandwagon over the past few years with varying degrees of success. However, developing Data Centers for advanced telecommunications tenants is not a simple matter of revamping tired properties with fiber and extra power. Rather, these technically superior properties have emerged as a totally distinct asset class with unique requirements that set them apart from traditional office or industrial buildings.

Advanced telecommunications tenants share unique requirements that have literally changed the face of the real estate industry. Physical infrastructure needs are vital for a true Mission Critical Facility to serve the needs of these tenants, beyond the current characteristics -- large floorplates, wide column spacing, high ceilings, abundant and redundant power, multiple broadband telecommunications connections and state-of-the-art security systems. Opportunity to expand quickly within the same property is also crucial to these high-tech tenants.

Creating a true Data Center involves designating a team of reputable engineers to establish a detailed master plan for routing of the power feeders, telecommunications risers and interconnections, grounding cables, antennas and emergency backup. Developers realize the essential need for backup power and are designing and building emergency generator farms and fuel oil distribution systems to allow tenants to install and manage their own generators.

Owners must also have the foresight and commitment to preserve and improve these assets on an ongoing basis, constantly protecting them from technological obsolescence. They must also act as "power brokers," establishing relationships with utility providers that will insure immediate and sufficient access to electrical grids. They must be experts in zoning and permitting to help their tenants gain quick entry in an atmosphere where speed to market if often critical. They must not only select assets that are close to major fiber backbones, but have the relationships and ability to expedite installation of the critical "last mile" of fiber from the backbone to the desktop.

When JEMB Realty acquired 75 Broad Street in Downtown Manhattan in 1999 and set about creating the NY Telecom Exchange @75 Broad, we envisioned creating the indisputable choice for leading firms in the telecom industry and committed over $30 million in capital improvements to revolutionize the definition of a high-tech facility.

We committed ourselves to the telecom industry, and our company's foresight, investment and handson management approach quickly paid off, as the 75 Broad Street property was nearly completely filled with telecom and technology tenants less than a year after being acquired at less than 20 percent occupancy.

The enthusiastic response we've received from these technology and telecommunications tenants prompted us to undertake a strategic acquisitions plan nationwide, and JEMB is now a leading Data Center owner with the recent development of The NJ Telecom Exchange in Newark, The Atlanta Telecom Exchange in Atlanta, and the Scottsdale Technology Center in Arizona. Other acquisitions are being evaluated on an ongoing basis.

Owning, developing and managing this new class of real estate is not for everyone. It requires a unique set of skills and capabilities, and a keen understanding of the evolving needs of these high-tech tenants. While many owners are attempting to board the Data Center bandwagon -- often with disastrous results -- only a select few have the dedication, commitment and capabilities to succeed in the development of this new class of real, estate asset.