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Lease Conduit Space

Lease Conduit Space

(OP)
Hello All...
Here's my question..
My company has (6) conduits leading into my building. Three are being used and (3) are available.
We have a company interested in using (1) of our conduits for their own personal use, so my question is, "what's a fair amount" to lease condut space for?

I'm currently researching the internet w/ this queston and can't find anything yet, so I thought I'd give it to you experts!

Thanks!

A Tek-Tip Lover

RE: Lease Conduit Space

"Fair" is all relative to your future need of the conduit, cost paid by you if any for the original install, and worth to the renter. What will they be using the conduit for? i.e. - supporting how many people?

1 interpretation of fair could be 25% the monthly cost of a 10MB circuit. The tenent will likely run fiber giving them a 10GB dark fiber connection for 25% of the cost they would be paying for only 10MB from a telco.

-CL

RE: Lease Conduit Space

Assuming your company owns the building and the conduits, and you have the right to lease the conduit space…

Is the third party that is interested in the conduit a tenant in your building? If so, have you looked at the current lease agreement to ensure it does not stipulate their rights of access into/out of the building for telco services? If it’s already in the lease, charging them may be sticky.

If they were to install their own conduit, would they have that right? If so, I would determine the cost of a new conduit, break it out over a given term (say 5 years) and build in a 5% or 10% increase per year (depending on the total cost). This way it’s a win-win.

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