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Wired Up for Extra Value




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 multi-let 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, American Real Estate Society, vol. 17(2), pages 245-255.
  • Handle: RePEc:jre:issued:v:17:n:2:1999:p:245-255

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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, Asian Real Estate Society, vol. 5(1), pages 146-168.

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    JEL classification:

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


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