First there was Internet hype. Then the real estate world was inundated in telecom hype. And now, it seems that both of these predicted growth explosions have quietly gone bust.

A year ago, readers could not read real estate press releases without being bombarded by high-tech and telecom news. Start-ups offering to wire, connect, and automate every building on the local skyline were springing-up everywhere, and many established real estate firms formed partnerships to help them jump on the technological bandwagon.

Just a year later and a few thousand points less on the NASDAQ, real estate watchers are hard-pressed to find much in the way of new telecom and high-tech offerings for tenants.

Perhaps the most inspired segment of the cross between real estate and technology was the idea to wire office and industrial buildings. This strategy attracted large and small real estate players alike, most of whom teamed up with start-up telecommunications companies prepared to share the wealth.

Their strategy went something like this. The partnership would fully wire existing buildings when feasible. But even more attractive would be providing full telecommunications service for new construction. Tenants would have access to broadband services, as well as expensive and little-used services like video conferencing. And landlords would take a cut off of every telecom service tenants bought, providing an attractive, long-term revenue stream beyond rent.

But several intervening factors prevented this strategy from becoming a profitable reality. For one thing, many planned high-tech buildings around the country have been shelved as technology companies pulled back expansion plans.

What's more, in buildings that have gotten "lit," tenants are not jumping at the chance to pay for advanced telecom services. While a wired building is definitely more attractive than the non-wired alternative, tenants are not flocking to pay premium rents for the privilege of broadband access. Landlords who thought that broadband access would give properties a great competitive advantage have learned that tenants more interested in lower costs and slower connections.

Of course, many industry watchers firmly believe that the revolution has simply been delayed -- not shelved. According to accounting and consulting giant Ernst & Young, the time is right for real estate firms to embrace technology -- especially market-tested tools that can offer immediate value by bolstering profits through operational efficiencies.

"Each day costly, inefficient processes in the real estate industry demonstrate the need for technology-enabled performance improvement," says Joseph Rubin, director of E&Y's Real Estate eBusiness Solutions Group.

Of course, it's in Rubin's best interest to suggest investments in technology. And he is probably right -- far too often, real estate firms have been slow to adapt technologies that already are saving other industries time and expense.

"Recent softening in real estate markets nationally adds urgency to performance improvement initiatives," Rubin pointed out.

Yet hundreds of web-based real estate ventures have gone bust over the past six months.

"We are now seeing the consolidation and emergence of market leaders," Rubin said. "The remaining companies that target specific points of pain in business processes and those that can deliver measurable value will be the long-term winners."

E&Y certainly has a point. Real estate firms should grasp new technologies to ensure their businesses are operating efficiently, especially in tough economic times. But with technology and telecom businesses going bust all around, which contender will be around for the long-term?

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