Creating new revenue streams on mixed-use developments

Real Estate Weekly, Feb 12, 2003 by Charles Jr. Buscarino

The nature of the design and services developed are intended not only to provide greater value to each of the individual tenants, but also to foster closer relationships between all tenants and encourage greater interaction and value for all parties.

Although it is not uncommon for large corporate offices to use bits and pieces of a wireless technology, AOL-Time Warner Center is the first mixed-use venue to have it all, i.e., an in-building wireless system with capacity for voice, data and video, including high-speed Internet.

Furthermore, the wireless technology installed in the facility will have the ability to support:

* Emergency Services (i.e., fire, police and EMS)

* Building Management Services

* Cellular Telephone, Messaging and Pagers

* Wireless Local Area Networks

The inclusion of wireless technology will help allow emergency services and building operations people to communicate throughout the 83-floor structure -- from basement to penthouse. It will allow cell phones to operate deep inside the facility and connect guests, corporate employees and residents, alike, to the Internet, corporate LANs and custom building information services outside their offices and/or residences.

While the emergency services and building operations functions of the wireless system add real value to the project from a life safety and operational perspective, the cellular and Internet services are intended to produce revenue for the site. Cellular carriers connect to the developer's installed wireless system and pay a monthly rent for it use. The in-building high-speed Internet services are extended to the wireless system and generate revenue based on per use or monthly fees. It is also intended to make these services available out to Columbus Circle and Central Park, barring any regulatory issues with the city. Such information as way finding, calendar of events and site amenities can be made available to guests and visitors on their favorite WLAN enabled PDA. Once again, these services represent a size, scale and unique offering unlike anywhere else in the world.

While having an infrastructure that allows for the distribution of voice data and video signals is compelling in a state-of-the-art facility, it is not as compelling as the ability to originate content. Companies produce marketing and media events that get transmitted, streamed to the web, archived, repackaged and repositioned on a regular basis. To perform these functions, companies must build their own facilities or outsource to production companies that bring in the required equipment at significant expense.