"What's makes it so attractive to developers is that all theyhave to do is provide the heavy power required and get the permits,and the tenants will do the rest," Rick Osterhout, a broker withKidder Mathews & Segner, tells GlobeSt.com. "By doing so, itenables the developers to charge three, four, even five times theamount traditionally charged for lease space."

A good example, says Osterhout, is the New York real estate firmArgent Ventures. Having purchased the Odom Corp. beveragedistribution warehouse last June for $9.5 million, Argent hasapplied for permits to convert the 125,000-sf building at 26 S.Hanford St. into Telecom Central.

When the facility is complete early next year, instead of thetraditional $5 to $6 per sf that industrial space usually goes for,Argent can get away with charging communications companies $20-$25per sf because of the demand. Four companies are reportedlyexpressing interest in the space.