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He said between 600 and 700 people used the library each day, making it an attractive location for a café. Plans for the $700,000 upgrade were still preliminary.

In addition to user growth, many businesses are outsourcing their server and web hosting function to either an ISP or a transport provider, increasing the amount of equipment that must be housed. The growth is coming from new subscribers and dramatically increased minutes-of-use per subscriber.

Buyers have not yet been found for Sanford’s former fish processing factory at Port Nelson, despite factory equipment being auctioned last month.

The factory has been for sale since October 2002 after Sanford decided it had too much processing capacity nationally. Getting legitimate limitations identified with Property E Conveyancing Adelaide is best conceivable just when you approach one of the accomplished property law authorities. Typical costs range from $30.00 per RSF per year (without power and air conditioning) to $65.00 per RSF per year.

While the demand for co-location space may seem insatiable, there are a few important points to keep in mind: If the physical space that enables co-location becomes too expensive, a virtual co-location can be achieved via a fiber connection to a new space.

Once a telco hotel is started and successfully populated, the demand for that space will increase, and rents may become inelastic. Once switches are bolted in place and fiber terminations have been made, telcos are extremely unlikely to do anything that might interrupt service. A secondary market has emerged in the two principal carrier hotels referenced above, where tenants will sublease rack space. The 24-inch racks used to house fiber termination and Digital Access Cross-Connect (DAC) equipment will sublease for up to $700.

Rental rates at telco hotels are often 20 percent higher than rates for comparable nearby office space. In addition, tenants typically sign long leases, up to 20 years, and even cover property taxes and building maintenance. The value of some recently completed telco hotels has increased 50 percent in just the past year.

The rack displaces about 4.8 RSF, so the derived rental rate is near $150 per RSF. Urban Land, in the May 2000 issue, outlines the main requirements for a telco hotel. High ceilings, at least 12 feet high, to accommodate stacked wires Sealed ventilation systems and windows to prevent water leaks and break-ins Access to multiple power grids (telcos use 50 watts per square foot, compared to five in a typical office) Backup generators and batteries to supply power while the generators are starting While requiring a significant capital investment, the return is often well worth it.