All Talk, No Show: Not for Texas Building Owners

Harwood International and Crescent Real Estate Equities have their own contracts. And before the dotted line is signed, there is an evaluation of tenants' needs and suppliers' services. It's not free access, it's not easy access, but it's equal access if the provider can withstand the test. That, say the companies' executives, helps block unfulfilled promises to light buildings.

Crescent's Howard Lovett, vice president of new business and technology services, says only one of dozens of contracted providers has fallen off course. "We really haven't had a bad experience other than this one company that defaulted," he tells GlobeSt.com.

When it comes to appraised property values, Crescent leads the state in Dallas-Ft. Worth, Houston and Austin. It ranks third in Denver. And, 51 of its 54 class-A properties are lighted by its preferred customer, Broadband Office. Crescent had been a founder of the high-tech provider and inked a pact knowing it might take time to connect the entire 28-million sf portfolio.

Others have come knocking on Crescent's door and gained admittance, but none have equaled Broadband Office's performance, says Lovett. And few, if any, have been startups. "I think as a group we have made some very good choices as to who's coming into our buildings," he says. There's a fee to sign the contract and the threat of a license revocation for not meeting established time frames unless an extension option has been exercised. It's just good business judgment, says Lovett, to protect the tenants.

Overall, he believes Crescent providers are doing a good job. He says many rollouts have been stalled just because there aren't enough wiring technicians.

Harwood International has taken a different tact. Sign a lease, get access to the firm's high-tech consultant, Roland Garcia, possibly the only one around who's solely contracted by a major commercial real estate firm. He not only advises tenants, but also is the keeper of Harwood's high-tech connections in its 22 buildings, which account for about eight million sf in Dallas. He says he came on board after building managers and leasing agents fell short in grasping enough technology to adeptly answer tenants' questions.

Garcia's opening line to newly signed tenants is "if you will listen to me, you will not make 95% of the mistakes you will have made without talking to me." Most listen; those who do not often come knocking later. He has saved upward of $25,000 on tenants' communications hookups, a Harwood insider had confided to GlobeSt.com. Garcia estimates savings run 30% to 50%.

The former Winstar employee readily admits that he pushes providers to use the incumbent exchange, Southwestern Bell, only because it makes sense. The infrastructure's already there for the provider to access and they aren't plunking satellite dishes on roofs or equipment in basements. He has it structured that Southwestern Bell and Qwest Communications provide fiber lines and Winstar, the wireless connections. The Winstar pact had been inked five years ago and he just came on board last year. Several of those months have been spent working with Harwood's attorneys to come up with a building access contract. "I didn't want a carrier in here that couldn't provide reliable service," Garcia tells GlobeSt.com.

Building centric providers who want to install "little boxes" most likely won't get past Garcia. He knows of at least a half dozen building centric providers that have gone under in the past six months due to top-heavy sales staffs and too little capital to make good on their building commitments. He predicts the shakeout will continue. "I think all smaller ISPs with more investment in people than they have in infrastructure will fall off the face of the earth," says Garcia, who is assigned to the Harwood Technology Division.