High fiber
Most new buldings, and some old,
offer heaping servings of technology
by Jim Martyka Where’s the fiber?
A few years ago, that question was on the lips of large- and small-business owners alike as they scoured the Twin Cities’ downtowns and suburbs looking for new office space that offered the best technology money could buy. Wanting better access, quicker and stronger communications and the right to brag about their state-of-the-art headquarters, business owners became fascinated with fiber optic cabling and similar technology. And whenever this type of space went up, these owners came out of the woodwork to put in bids.
So ask that same question today. Where’s the fiber? Well, pretty much everywhere.
Okay, maybe fiber-optic cabling isn’t in every building, but that or similar communications technology can be found just about everywhere in the Twin Cities, especially in those buildings that have gone up over the past five years. That has led to a shift in attitude for business owners, who now expect their office space to come with fiber or T-3/T-1 lines or, at the very least, DSL. The same rings true for energy sources, electricity, heating and cooling systems.
In fact, according to real estate experts, these days business owners expect more in terms of technology than they really need.
“About 99 percent of business owners that boast about having fiber will never even need it,” says Rob Kost, a senior associate with Bloomington-based United Properties. “This is especially true with small businesses. They can get by with DSL or a T-1 line. But everybody expects it these days because building owners keep juicing up their properties. It’s funny. A few years ago, this was new and exciting. But now, these small-business owners expect to have technology they don’t even really need.”
Network backups
Another key feature is capacity for computer systems and network back-ups. With scares of viruses and other potential network problems, this feature is especially vital for small businesses with a technology focus. And then there are buildings that have multiple power sources, be it high-powered back-up generators or energy coming in from multiple stations. There are also buildings with the latest and greatest in heating and cooling systems.
“Having the best in technology has always been important to businesses of any size,” says Peter Lindstrom, marketing and communications manager for the Minnesota High Tech Association. “And we’ve seen so many new developments over the past decade. There is a lot to offer.”
Newer developments show the range of offerings, such as Marquette Plaza (the former Federal Reserve Building), which was renovated in 2002. The new building offered huge underground space, which meant room for massive tech infrastructures, electrical systems and high-capacity fiber networks. That instantly drew the attention of several technology-based firms.
“It truly is an amazing property,” says Gene Rerat, director of development for Minneapolis-based Petrie Development Corp., which spent $65 million on the 534,000-square-foot renovation project. “Even though we were in a soft market when the building went online, there was and is a lot of interest in the space. That’s what offering up this type of technology can do.”
Real estate officials echoed that sentiment, even if some call it unnecessary.
“The reason all of these properties have the latest in technology is because it’s what the potential tenants need and expect,” says John Mannillo, a commercial broker and tenant rep for St. Paul-based Mannillo Womack & Associates. “Now they can get pretty much everything they need for their business just about anywhere.”
Shining examples
This technology boom is most apparent in the two downtowns, where some older buildings have been retrofitted and newer buildings make technology a vital part of the planning process. Along with Marquette Plaza, downtown Minneapolis has also seen shining technology examples in the IDS Center and more recently in the 50 S. Sixth St. building, where building owners not only built in technology capacity but were also flexible in allowing tenants to customize technology to fit their needs, another trend that can be found in some of the newer developments around town.
“We’re essentially the hub of computing for not just our branch, but also for the entire company, which has offices all over the country,” says Mike TerSteeg, legal technology manager for giant law firm Dorsey & Whitney, which is housed in the 50 S. Sixth St. building. “So we needed extra capacity and the best in technology. That’s why we looked at this building. But then, we also had to do some more work.”
When the firm moved in in 2001, taking the 15th to the 24th floors, the space had only one telecommunications route coming in. The firm wanted another route coming in for back-up, mainly because the original line was close to where construction was taking place for the new light rail and there was a sense of insecurity in the firm. The additional line means that if anything happens to one of them, the systems will still run normally. The extra line cost the firm around $130,000, TerSteeg says.
“But we were excited that the building owners let us do it,” he says. “They knew we needed it. It’s just a good way to work with your tenants.”
St. Paul side
That flexibility and focus on technology can also be found in downtown St. Paul. While there has been little new office space construction downtown, those places that have been built, such as the Lawson building and the Minnesota Life building, have included the technology necessities.
“There was a lot of interest here just like in Minneapolis from tenants who wanted and needed extra lines, fiber, backup generators, all that,” says Dick Zehring, principal at St. Paul-based MSP Commercial. “Like Minneapolis, tenants can now find just about anything they want in terms of technology in St. Paul office space.”
Zehring worked on leasing the Minnesota Life building, which real estate officials describe as St. Paul’s most shining example of office space technology. The 630,000-square-foot building has T-1 lines (though it is also fitted for T-3), redundant fiber cabling, backup power systems and even some technological toys, such as an elevator system that runs nonstop like an express elevator. And at least one tenant loves the building almost as much, if not more, than the owners.
“We looked at various sites and this one was simply the best because it gave us everything we needed and more,” says Chuck Armstrong, who was vice president of administration for the St. Paul Area Chamber of Commerce, a resident of the building. Armstrong recently left the chamber. “I think most businesses will tell you this. The extra lines are so important for security and to just make sure that everything is running smoothly. Communication is one of the most important aspects of business, if not the most important. You need to make sure that communication capability is fast, efficient and not in any danger.”
While this type of technology could be expected downtown, wired buildings also are popping up all over the suburbs, especially in and around office parks.
State of the art
One example that several real estate sources mentioned was the 7700 France building in Edina. Real estate developers Frauenshuh partnered with Zebulon Technology to launch a new business called Verispace. The new company provides extra capacity, data storage and backup network security for small and mid-sized businesses. As such, having the best in technology was vital for the new office building.
“Our business is technology, so we needed to have the most state-of-the-art office space in the Twin Cities and we believe we do,” says Gene Randol, chief operating officer for Verispace. The 400,000-square-foot complex has the best in heating and cooling systems (vital for huge computer rooms), four fiber communication entrances and a gigantic 1.25 megawatt generator. But the most unusual feature is that the building is fed power by two different power grids. This essentially guarantees the building will never lose power.
Real estate officials say this feature could become more common in the future. After all, a few years ago nobody would have thought that T-1 lines and fiber cabling would be as prevalent as they are today.
“It goes to show how quickly things can change, especially when it comes to technology,” Kost says. “You never know what will become commonplace in the future.”
