Several months ago, Allied Riser, Dallas, began offering stock warrants to property owners. But Allied Riser's move also forced other providers, including eLink, to offer warrants as well. Stock warrants give holders the right to buy stock at a later day at a certain price, which is typically low. Many of the real-estate companies involved in such deals are private, meaning the stock warrants flow right into the pocket of its owners. Building owners like to say they are all for competition and choice for tenants, but that can get tricky when a landlord stands to make money from tenants using a particular telecom provider.
Landlords say there is no conflict of interest.
He and other landlords believe that real-estate companies are actually doing tenants a favor by finding the telecom companies with the best service and track record. To get an edge on his competitors, Mr. Sloan sometimes has to rely on his investors. D.C. Mr. Sambuco listens to Mr. Sloan's rapid-fire pitch across a long conference table, taking notes throughout. Occasionally, he throws out a question. ELink's going rate for New York buildings is one warrant for every 12.14 square feet Colonnade can offer.