Hello? Anybody there?

The vacancy rate for telecom hotels hit 44.6% in the first quarter of 2001, according to a report by Grubb & Ellis, and things don’t look much brighter for the immediate future. Five million square feet of telecom-hotel space is currently under construction with another 3.7 million on the drawing board. The glut of space for telecom hotels, which include data centers, server farms, co-location facilities, and carrier hotels, mirrors the bad times currently facing the telecom industry. Vanishing capital funding, free-falling stock prices, and difficulty making the connection from the local phone company to the end user (the so-called last mile) have combined to hit the industry hard.

Photo © Eyewire.

Buyers & sellers, visit www.texasrealestate.com.
REALTORS®, visit www.tar.org.