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Wired Up for Extra Value

Author

Listed:
  • Bob Thompson
  • Michael Hills

Abstract

The demand for Internet connectivity in office buildings opens up opportunities for landlords to provide added-value services to their tenants. This article seeks to explore the hypothesis that the provision of high bandwidth telecommunications to a building increases its value relative to buildings without this facility. The article builds upon research undertaken into existing use of the Internet over the past two years as evidence of demand for facilities and explores the likely impact of the provision of connectivity on different types of office. The connected building is defined and issues affecting its valuation analyzed. Finally, a hypothetical business model is constructed for a large multilet building to demonstrate the likely income stream and timing that would be applicable.

Suggested Citation

  • Bob Thompson & Michael Hills, 1999. "Wired Up for Extra Value," Journal of Real Estate Research, Taylor & Francis Journals, vol. 17(2), pages 245-255, January.
    • Handle: RePEc:taf:rjerxx:v:17:y:1999:i:2:p:245-255
    DOI: 10.1080/10835547.1999.12090971
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    Cited by:

    1. Sing Tien Foo, & Lee Kin Pang, Juvette & Wong Ah Long, 2002. "Network Effects and Broadband Connectivity in Office Building," International Real Estate Review, Global Social Science Institute, vol. 5(1), pages 146-168.
    2. C.M. Lizieri, 2003. "Occupier Requirements in Commercial Real Estate Markets," Urban Studies, Urban Studies Journal Limited, vol. 40(5-6), pages 1151-1169, May.

    More about this item

    JEL classification:

    • L85 - Industrial Organization - - Industry Studies: Services - - - Real Estate Services

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