In the Middle Ages, alchemists sought ways to transmute 'base' substances into more valuable and highly prized material. The ultimate example of this was their search for a method to transform lead, a useful and important, but not highly profitable metal, into gold. Although many tried, no one was able to devise a formula that would accomplish this feat.
Today, however, commercial real estate companies are finding that there is a formula available to help them transform their solid, well-grounded investments in land and bricks and mortar into highly efficient and profitable property. The alchemy that they are applying to accomplish this is based on the combination of real estate with cutting-edge technology from a variety of different sources. Broadband, web-based resources, energy benchmarking and wireless communication are just a few of the many new and emerging technologies that are opening avenues to profitability that did not exist even a few years ago.
In this first annual technology issue of Real Estate Portfolio, we provide information on a number of these technologies in our expanded Technology Roundup department.
Our feature stories include an article titled "2001: A Technology Odyssey," that explores some of the new building management options that the next generation of software is making available to REITs and REOCs.
Our feature on high-tech corridors, "Thrill Ride," takes a look at the impact that the rapid expansion of the technology-based economy has had on commercial real estate owners and the potential effects of the current slowdown in this part of the economy.
In "The Simple Life," we examine the complexities of the problems that confront retailers in dealing with 45 different sets of state sales and use taxes and how Internet and brick-and-mortar retailers, as well as the state governments themselves, will benefit from making the system more streamlined.
In our Board Room column, Patrick McGurn of Institutional Shareholder Services gives us a cautionary perspective on the impact of the Internet on shareholder activism. And in our Professional Perspective column, Robert Frank of Intellectual Capital Markets, Inc., offers his views on how REITs should approach broadband opportunities under the REIT Modernization Act through scenario investing.
Christopher W. Murphy
Editor-in-Chief
