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Google Fiber Raising Property Values
As KC Businesses Relocate to Get Connected
by Karl Bode 09:20AM Monday Oct 29 2012
Residents of Kansas City are closely tracking Google's deployment of fiber services, Google only having recently lighting up its second neighborhood in the area. Smaller businesses are relocating to the areas that are first to get the symmetrical 1 Gbps services, impacting property values despite the fact that the services have barely gotten off the ground. "It just makes life easier," the CEO of one relocating startup tells the Kansas City Business Journal. The $70 monthly price tag for symmetrical 1 Gbps service likely doesn't hurt. Back in September Google announced their construction schedule for the service, which you can find here.

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Cabal
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join:2007-01-21

n/a

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ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Wait! Wait!

But I thought that no one in their right mind would want all this speed, that there's no use for it, and that projects like this are doomed to failure. Isn't that what the folks with the talcos and cable companies have been saying for years? I mean, why would they lie to us? I feel so used!

battleop

join:2005-09-28
00000

1 recommendation

Re: Wait! Wait!

I live in the "Gig City" and I've not seen this mass influx of high tech companies or jobs. I've also not seen an increase in my property value except for what the tax assessors office has increased to up our property taxes.
--
I do not, have not, and will not work for AT&T/Comcast/Verizon/Charter or similar sized company.
rradina

join:2000-08-08
Chesterfield, MO

1 recommendation

Articles Cites One Company Relocating

Are we being asked to believe one now means a trend? I guess if folks believed the "Army of One" ads even though basic training delivers the reality of "chain of command", they'll believe this.

morbo
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join:2002-01-22
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Re: Articles Cites One Company Relocating

Would you believe it if there were two companies relocating? 3? 10? 1000? The point is that businesses want this technology and will relocate to get it. It's similar to FIOS.

ArrayList
netbus developer
Premium
join:2005-03-19
Evanston, IL

Re: Articles Cites One Company Relocating

said by morbo:

It's similar to FIOS.

except better.

morbo
Complete Your Transaction

join:2002-01-22
00000

Re: Articles Cites One Company Relocating

The price and service is better. I meant similar to how people will move to areas with FIOS and will avoid areas without it. It is a factor in where people live.

ITALIAN926

join:2003-08-16
kudos:2
Have you tried both? Have you tried either?

LOL except better. So tell me, how does Googles multi-room DVR compare to FiOS? Just as a simple example....

ArrayList
netbus developer
Premium
join:2005-03-19
Evanston, IL

Re: Articles Cites One Company Relocating

DVR has nothing to do with internet service.

ITALIAN926

join:2003-08-16
kudos:2

Re: Articles Cites One Company Relocating

Yea, and where did YOU , or ANYONE specify INTERNET SERVICE?

ArrayList
netbus developer
Premium
join:2005-03-19
Evanston, IL

Re: Articles Cites One Company Relocating

Google Fiber is an internet service.

ITALIAN926

join:2003-08-16
kudos:2

Re: Articles Cites One Company Relocating

Wow, I thought it offered TV service as well, silly me.

I have a newsflash for you , TV service is what sells the fiber connections. If they only offered internet, it would be an even bigger bust than it will be.

ArrayList
netbus developer
Premium
join:2005-03-19
Evanston, IL

Re: Articles Cites One Company Relocating

keep your lies to yourself. you liar.
rradina

join:2000-08-08
Chesterfield, MO

1 recommendation

That's not the point. The article claims businesses (plural) are relocating to take advantage of Google's fiber service and in turn raising property values.

The article was clearly written by someone who specializes in creating campaign ads for politicians. It's not completely a lie but once you investigate the context, it's often like the attack ads that claim someone voted against [pick your favorite topic]. What! Who would vote against [pick your favorite topic]. Further investigation then reveals that one piece of good was attached to a boatload of pork-barrel spending and that's the reason for the NO vote.

In closing, the underlying point of this articles is, don't believe everything you read.
jtorre69

join:2005-12-26
Hollywood, FL

Dear at&t

Listen and learn.............
jtorre69

join:2005-12-26
Hollywood, FL

dear at&t

Listen and learn........you are about to become a relic..... repent and accept fiber as your savior!!!!!!
silbaco
Premium
join:2009-08-03
USA

As expected....

Well this is no surprise. And the neighborhoods in Kansas City that were too poor or simply unpopulated enough to meet Google's perfect deployment strategy are going to go down in value. How wonderful of Google!
ISurfTooMuch

join:2007-04-23
Tuscaloosa, AL

Re: As expected....

If you were opening several stores in a city, would you scatter them randomly about, or would you locate them where they're likely to get the most business?
silbaco
Premium
join:2009-08-03
USA

3 edits

Re: As expected....

Depends on the business and the situation. The place where you get the most business is not necessarily the place where you have the most people or the most money. It is the place where there is a high demand for what your business offers. Pharmacies for example are very often located in lower-income parts of town just as they are in higher-income parts of town. A person may start their own business in the any available building closest to their home. A manufacturing facility may locate to the place where they can find a reasonable amount of property for sale and key access to roads and may also dependent upon where the city lets them build. That may not be most populated neighborhoods.

Google fiber is a great project, but Kansas City might not have predicted just what the project will essentially do. It will raise property values where it is deployed, which can help some higher-income people and hurt some of the lower income at the same time. For businesses that need fast fiber, it will help. For a coffee shop that doesn't, could hurt with higher property taxes. But more importantly where it is not deployed, it will only lower them. It will make that house harder to sell and it will put businesses at a competitive disadvantage to others in the city. That could ultimately drive businesses out of the area where Google is not deploying and make the lower-income parts of the city even lower. Higher income parts will suffer from greatly decreased property values. That's not going to help anyone. It is creating a digital divide within a city. Digital divides hold back everyone.
iansltx

join:2007-02-19
Austin, TX
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Re: As expected....

However the vast, vast majority of the cities' neighborhoods are getting wired.

Not all of them. Not yet anyway. But they all will be eventually...I guarantee Google will include the unserved fiberhoods in a future rally to give them another chance.

morbo
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It seems like you are just searching for a reason to complain. No one is suggesting that Google Fiber will cure all of mankind's problems (rich vs poor, etc). There will be no digital divide since the existing providers of DSL and cable internet will still provide those services to all areas.
silbaco
Premium
join:2009-08-03
USA

Re: As expected....

No digital divide? You don't consider 5-24mbps down/1-2mbps up DSL vs. ~1000/1000mbps a digital divide? It's like comparing dial-up to DSL, except we are dealing with higher numbers.
openbox9
Premium
join:2004-01-26
Germany
kudos:2
Redlining...cough, err, wait a minute?
xenophon

join:2007-09-17

1 edit
Google gave all valid fiberhoods the option to register. It's just that the poorer hoods were less likely _interested_ to register. What's interesting is that low income hoods with many immigrants had high registration... it seems immigrants are more motivated by the potential (they came to America for opportunity) than non-immigrant low income hoods who don't recognize opportunity that is dangled directly in front of them.

Assuming Google stays in the ISP biz long term, is likely Google will wire up all hoods in the end but that the registration just set the priority. They already plan to expand to N and S KC in 2014.

It's actually surprising Google targeted most of the lowest income areas of KC metro to start with. They could have started with the highest income but only hit a portion of high income hoods of the metro. All of Johnson County (the highest income county of metro) is so far ignored. So you can't bash Google for ignoring low income areas as that is where they gave first opportunity. It's just that some didn't bite.

tshirt
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join:2004-07-11
Snohomish, WA
kudos:4
Reviews:
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Re: As expected....

And as the housing/property price rises the poor get forced out and those homes and buildings get taken over by small businesses, at least until the roll out becomes more widespread, and the internet wanna be startups get culled.
If the few hundred dollars a month more for a standard highspeed connection or hosted server is the make or breakpoint of these small businesses then the increased rent/property value will promptly kill most of them off.
xenophon

join:2007-09-17

Re: As expected....

KCMO, KCK and the metro are huge in area. The entire metro will hardly be overly gentrified by this. KCK is the lowest income area of the metro - it needs this. If anything, some down and out hoods will get an economic boost with mild rent rate increase. Once Gfiber hits upper income hoods in KC, MO next spring (downtown, Plaza, Brookside, Ward Parkway) , this will probably be moot and the lower income hoods will at best see mild gentrification since they have access and other metro cities do not.

I won't be getting Gfiber until next Fall (Westport/Plaza area) but am hoping it raises condo values in my hood. Now is the time to buy in KC (at least in valid fiberhoods).

skeechan
Ai Otsukaholic
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If this were a telco, the editorial would be about evil Google redlining.

skeechan
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1 edit

Meanwhile they don't employ anyone

quote:
That was the answer for Local Ruckus LLC, which is opening its new headquarters in a 2,500-square foot home in the first neighborhood scheduled to receive Google Fiber service
There is no real economic benefit if they don't employ anyone locally. These service businesses don't (they're little more than telecommuting hubs) and unless they are selling certain services in state (as opposed to out of state clients), they don't even collect sales taxes. And given they don't have many local employees, they don't have many consumables (paper, toner, etc) which means they don't pay much in local sales tax either.

Don't get me wrong, it's certainly better than nothing, but it's hardly a Google fiber jobs boom. If a factory or software company employing a 1000 local people moves to town because of Google fiber...then F-N-A but I don't see that happening.
xenophon

join:2007-09-17

Re: Meanwhile they don't employ anyone

It's about the long term impact. The goal is to nurture dozens to hundreds of startups and target 10% to take off. It's a lot cheaper for city govts to target this than try to bring in larger companies with big tax breaks or corporate welfare. Many companies start with one person. KC is already strong with entrepreneurial programs (Kauffman Foundation, UMKC) that help one person companies take off. Google fiber is an opportunity for another path.

skeechan
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Re: Meanwhile they don't employ anyone

Long term, short term, neither will matter. REGULATORY/TAX conditions in the state and city are what are going to determine whether or not jobs show up.
elray

join:2000-12-16
Santa Monica, CA
Reviews:
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Re: Meanwhile they don't employ anyone

said by skeechan:

Long term, short term, neither will matter. REGULATORY/TAX conditions in the state and city are what are going to determine whether or not jobs show up.

Regulatory, tax, cost of housing, energy, ease of transport, public safety and quality of schools -> educated workforce all come together to inform whether a business might want to relocate.

You also have to have enough sizzle to attract the boss. If the boss doesn't want to live in Podunk, because you have no [insert favorite ethnic adjective] deli, or Mrs. Boss is scared of the locals, it ain't gonna happen.

Sprinkling Magic Google Dust on a zip code to boost internet speeds from 10M to 1000M ... simply does not rank. Most businesses simply don't need that type of bandwidth, and for those that might, its at the hosting sites.
xenophon

join:2007-09-17

Re: Meanwhile they don't employ anyone

Which is why the local ecodev is going after small biz development rather than trying to entice large biz to move with massive incentives/corp welfare. KC metro already has about 3000 IT/tech shops, nearly all home grown. It's already considered high ranking in entrepreneurial development.

On a related tangent, there is rumor in KC real estate circles that Google is looking to buy the massive Sprint HQ campus in the KC area (Sprint is using only half). If true, perhaps Google is looking to base the fiber division in KC area. KC is already a top 10 telcom town and hit a list for a lot of Android developers, so is plausible.

»forum.kcrag.com/viewtopic.php?f=···le+rumor
elray

join:2000-12-16
Santa Monica, CA
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Re: Meanwhile they don't employ anyone

said by xenophon:

Which is why the local ecodev is going after small biz development rather than trying to entice large biz to move with massive incentives/corp welfare.

Who said anything about large biz?

Trimline
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Windermere, FL
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Really, Why Is This a Surprise?

Really, why is this a surprise to anyone. With so many telecommuters today and dependent internet households, I can't even understand why this is even a topic.

Of course you want the best services when shopping for a home. No fiber, move on...
decifal

join:2007-03-10
Bon Aqua, TN
kudos:1

shazam

Imagine that.. Create something ATT/comcast fights tooth and nail against and look, more money comes to that area.. Wow, much more different than the college kiddies with masters in BS drew up on how to bottom dollar every single thing and suck the life out of it charts seem to show....

/sarcasim

I hope google makes back their investment and then some on this experiment...
Methadras

join:2004-05-26
Spring Valley, CA

You should see property prices in Santa Monica/Venice Beach

Now that google and microsoft are infiltrating into those area. Rents have gone up a fact of 4 to 6. Home sales are through the roof with bidding wars and inventory is down. So seeing values go up in the middle of nowhere to piggy back on nearly free fiber? Sounds like a good plan to me and it's private sector so it's win win.