Search
 

Local Telecom Market Falls Flat

GREATER BOSTON-A study by Lehman Brothers and Cushman and Wakefield indicates that only 25% of all the telecommunications space in the Greater Boston area was leased as of February, making this area's telecom industry softer than those in most major sections of the country.

By Naomi Grossman | Updated on August 28, 2001

GREATER BOSTON-A study finds that this area has one of the highest rates of availability in telecommunications space in the country. With the collapse of the telecom market, developers here are trying to figure out how to quickly convert their Internet hotels into usable space.

The study, put out by Lehman Brothers and Cushman and Wakefield, indicates that only 25% of all the telcom space in the Greater Boston area was leased as of last February. That puts this area below New York, which had 56% leased; Washington/Northern Virginia, 54%; and, Atlanta, 43%. “We’re obviously one of the major telecom markets,” Jay Driscoll, senior director at Cushman & Wakefield, tells GlobeSt.com. “We are second in the country with the amount of telcom space, just behind New York.” The reason for that is that overseas traffic comes in through the East Coast.

For a brief period here, developers were grabbing up old industrial buildings and wiring them as Internet carrier hotels and data centers. But, according to Driscoll, Boston started later than other areas. “If you look at the real estate development cycle, by the time people here got into this sector, the market started to cool,” he notes.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.