Is the New Jersey Wholesale Market Back on Track?

Two weeks ago,without much fanfare,Sentinel Data Centers announced that it had signed three major leases with “the largest”Fortune 500 firms for an initial aggregate footprint of 50,000 SF of turnkey data center space.  Since Sentinel’s first phase in  Somerset,N.J. represents 50,000 sf of data center space,this means that Sentinel has effectively sold out its first phase.  This press release came three weeks after The Wall Street Journal proclaimed that there was a “glut”of New Jersey data center space.

Meanwhile,we’ve heard from Digital Realty Trust ,that the company is now at 100% capacity in . . . →Read More:Is the New Jersey Wholesale Market Back on Track?

The Future of Manhattan Data Centers -Part 3 -More on 111 Eighth Avenue

In The Future of Manhattan Data Centers -Part 1,I mentioned that “the jury is out for the future of data center tenants”in the building, but that it was unlikely that Google would try to remove these tenants entirely. We have now uncovered some new information that supports this theory,and sheds some light onto Google’s plans for the building.

On Google’s Jobs page they have listed a position in New York of “Strategic Negotiator,Network.” The role of this position is to “spearhead the acquisition and allocation of Google’s global networking infrastructure,”and ”interact closely with outside vendors to design,develop,and . . . →Read More:The Future of Manhattan Data Centers -Part 3 -More on 111 Eighth Avenue

The Future of Manhattan Data Centers Part 2 – The Next 111 Eighth Avenue?

In my last blog post I mentioned that new data center users and expanding tenants will likely not have any options in 111 Eighth Avenue.  Google has indicated that it plans to expand in the building and has taken all available space off the market.  Meanwhile,quality data center space in Manhattan is in high demand.  The most recent sizable data center spaces that have come to the market in Manhattan leased at very high rents after bidding wars -the former Lehman Brothers space at 85 Tenth Avenue and Digital Realty Trust’s space at 111 Eighth Avenue. Most recently,XO has leased a raw floor at 32 Avenue . . . →Read More:The Future of Manhattan Data Centers Part 2 – The Next 111 Eighth Avenue?

The Future of Manhattan Data Centers Part 1 – 111 Eighth Avenue

Back in September,when 111 Eighth Avenue -one of the world’s premier carrier hotels was up for sale,I mentioned in a blog post that “an astute purchaser [of the building] will see

the inherent value in great tenants with excellent credit (like Google),and data center tenants.” I did not predict at the time that Google itself would purchase the building.  Now that Google has purchased the building,and has shown its intent to expand its presence in the building as quickly as possible,many of our clients have asked us what Google intends to do with the building’s data center tenants.

Google has not had . . . →Read More:The Future of Manhattan Data Centers Part 1 – 111 Eighth Avenue

Data Center Activity Heats Up In Manhattan

Spotlight New York:

  • Since Google’s acquisition of 111 Eighth Ave.,all available space in the building has been taken off the market. The most recent data center transaction in the building was Digital Realty Trust’s sublease of 53,000 square-feet to Telx shortly before the building’s sale.
  • Sabey and local developer Young Woo are under contract to purchase 375 Pearl St.,a 1-million-square-foot former Verizon switching building,for an estimated $100 per square-foot from M&T Bank. The building is well-suited for data center use,with very heavy floor loads,high ceiling heights,limited windows,and abundant shaft space.  Verizon will maintain a three-floor condo interest in the building.
  • . . . →Read More:Data Center Activity Heats Up In Manhattan

Space Invaders:The Take up of Colocation in NYC &NJ

In the latest issue of Datacenter Dynamics Focus I was quoted regarding the NYC and NJ colocation and wholesale data center market.  For Datacenter Dynamics’take on the market and some of my insights,check out the article here:Space Invaders:The Take up of Colocation in NYC and New Jersey

The Future of Wholesale Data Centers

If you read our market reports,you may have read that some of the largest and most active customers of Wholesale Data Center space are large technology companies like Microsoft,Facebook,Yahoo! and Google.

With that in mind,you may have found today’s Wall Street Journal article regarding Facebook’s Prineville Oregon data center interesting.  The article is entitled:“Facebook Data Center is Boon for Oregon Town.”

Rendering of Facebook's Prineville Data Center

The article describes Facebook’s ambition to build yet a second data center in Prineville,just like the first 300,000 sf facility (the first phase of which is not even open yet!).  You may . . . →Read More:The Future of Wholesale Data Centers

The New Speed of Money or “What is New York Four?”

A couple of days ago the NY Times published an article titled:“The New Speed of Money,Reshaping Markets.”  The article touches on a lot of the things we have mentioned in our blog regarding high frequency trading (see High Frequency Trading and the NYSE’s Data Center).

We have had several people ask us,what are these data centers that are referred to as “New York Four”and simply “Weehawken”in the article. There answer is,that “New York Four”is more commonly referred to as NY4,and it is a colocation data center from Equinix. The facility is about 340,000 sf,and it houses ISE,Direct . . . →Read More:The New Speed of Money or “What is New York Four?”

High Frequency Trading and the NYSE’s Data Center in Mahwah,NJ

In the spirit of David’s post,I thought I would add a little more color on high frequency trading and the NYSE.  Since it seems that any reputable reporter discloses all possible conflicts when writing about a topic (not that I’m a reporter),I should note that Grubb &Ellis manages the NYSE’s new data center in Mahwah,NJ.

Here are some facts on that facility that are not well known (but I should note that they’re not confidential):

Trading began in Mahwah in August,effectively moving the hub of the financial markets from New York City,to New Jersey.   The total facility which was built-to-suit for the NYSE . . . →Read More:High Frequency Trading and the NYSE’s Data Center in Mahwah,NJ

What the Sale of 111 Eighth Avenue Means to the Data Center Market

Much has been made of the news that 111 Eighth Avenue is on the market for sale and many of our clients have been asking what this means for the New York data center market.  First off,I would like to dispel some of the misinformation and myths  that are out there regarding the building,then I will touch on what I think this building means to the NY Metro data center market.

Myth #1:111 Eighth used to be a major “telco hotel,”but now it is primarily an office building know for its creative use tenants.

The Truth:111 Eighth is the premier office building in the Chelsea submarket,and . . . →Read More:What the Sale of 111 Eighth Avenue Means to the Data Center Market