``It was difficult to find the right space here, there just aren't a lot of old warehouses in this market that fit our requirements,'' says Jim Gearan. Gearan heads the Minneapolis office of Chicago-based Zeller Realty Corp. which, along with Chicago-based DLJ Realty Services, represented Nextlink in finding the telecom hotel space.

The lack of appropriate space could present a problem for what Gearan anticipates will be a wave of other telecommunications and computer companies seeking space in the Twin Cities. Telecommunications providers need high ceilings and large floorplates for their equipment. Warehouses need to be made of concrete - not wood construction - to safeguard against fire hazards, says Gearan. Very few buildings in the downtown Minneapolis area were suitable for Nextlink.

Nextlink is leasing the entire building at 1200 Washington Ave. N., which will house Nextlink's switches and routers and could house up to 50 employees. The building is just five years old, and until recently housed Microtron, a business which was recently sold by its owner.