Wall Street Journal: Property Investors See Fiber-Optic Cables as ‘Railroads of the Future’
According to The Wall Street Journal,
Business closures and stay-at-home orders have hit the real-estate sector hard. But an obscure corner of the industry is benefiting from people staying at home.
Fiber-optic cables are drawing a growing interest from investors. These cables, which transmit data through light and are a crucial component of high-speed internet, aren’t technically real estate. But they are often owned by property investment firms and leased out to users under long-term deals, much like office or retail space.
“Working from home has really shifted how the internet is working,” said David Guarino, an analyst at Green Street Advisors. Within large offices, data is often sent around through internal networks. When people work remotely and do much of their work over cloud-based applications, they send more data through fiber cables owned by investment firms, Mr. Guarino said.
Much of the increase in remote work is likely temporary, but more companies say they want employees to spend more time working from home or from smaller satellite offices even after the pandemic is over.
Read the full article here.