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Giving Business Tenants A Technological Edge


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Giving Business Tenants a Technological Edge

Commercial landlords are tripping over each other as they race to retrofit for the Internet Age. But when it comes to providing Web access, Equity Office Properties Trust is ahead of the pack. Through a partnership with technology provider Allied Riser Communications Corp., Equity Office will have a third of its nearly 100 million-square-foot nationwide portfolio of buildings equipped with fiber-optic lines by yearend, with the rest set for rewiring by the close of 2001. That will give Chicago-based Equity Office and its business tenants the nation's first high-speed network extending door to door, coast to coast. "You're heading for obsolescence if you're not providing high-speed Internet access today," says Timothy H. Callahan, CEO of Equity Office. And you're missing a chance to make oodles of moolah. Equity Office can now charge top-of-the-market rents and expects to rack up $20 million in added revenue this year from ARC and other telecom partners. The deal's good for tenants, too. ARC charges just $100 a month for the first line, and no more than $40 for each additional line.Return to top

TABLE

Equity Office Properties Trust

The Project: Equipping nearly 100 million square feet of office space with ultrahigh-speed Internet access.The Payoff: By beating other landlords to the market with Net services, Equity Office can charge top-of-market rents--plus it gets $20 million in revenue in 2000 from telecom partners and stock and warrants.Return to top


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