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Study Shows Broadband Boosts Rental Property Values

WASHINGTON, DC-A market research and consulting firm has found that technology infrastructure does make a difference in the value of office space. Those owners who make the tech grade will see the rewards.

By Diane Cook | Updated on November 17, 2000

WASHINGTON, DC-Apartment complexes targeting younger, technically-oriented tenants would be well-served by investing in broadband services to their multi-dwelling units, according to a newly released study from the Strategis Group. MDUs represent more than a $20 billion market for communications. The group further predicts that nearly 40% of all addressable MDUs, representing nearly 6 million subscribers, will subscribe to some form of high-speed Internet service by 2005.

In its latest study, the DC-based market research and consulting firm projects that high-speed data revenues alone will approach $1.8 billion for MDUs, and the total market for communications services in these units will reach $29 billion. In addition, video on demand revenues will top $770 million for the years spanning 2000-2005 in this market.

Current census data shows that about a third of the population lives in MDUs, says Jason Marcheck, analyst with the Strategis Group and primary author of the study. By the end of 2000, the US will have about 21.5 million MDUs and up to 23.5 million by 2005. While public housing and eldercare facilities, mixed into this group, may not be the best candidates for broadband services, there’s plenty of underserved tech-savvy tenants out there waiting for them.

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