Turkey,Data Centers and Dallas

National Highlights

  • Demand continues to outpace supply, primarily by users looking for 700 KW – 1.5 MW (5,000 – 10,000 square feet).
  • In the non-wholesale market (under 500 KW);colocation deals are reaching $350/KW all in.

Spotlight:Dallas

  • Overall pricing has remained consistent since our last Dallas newsletter, as rental rates range between $125-170/KW NNN for wholesale PODs.
  • Stream Data Centers is under construction on Richardson II project and will deliver 20,000 square feet of commissioned raised floor in May 2012.  There will initially be 2.2 MW of critical load,expandable to 30,000 square feet of raised floor and 6.6 MW of critical load.
  • Texas . . . →Read More:Turkey,Data Centers and Dallas

Texas Update

National Highlights

  • On a national basis,there are no indicators of oversupply of colocation or wholesale data center space.
  • There is potential for some markets to post a short-term surplus in either space,but the demand will offset supply.
  • Similar to the second quarter,the third quarter had slow leasing activity in the wholesale data center market. Pent-up demand should result in a strong fourth quarter.
  • Increased competition throughout the country led to a downward pressure on pricing in the colocation space during the third quarter.

Spotlight:Texas

  • There has been an influx of 300-600kW transactions in the market place.  The majority of those transactions . . . →Read More:Texas Update

Dallas (May 2010)

National Highlights

  • There is a shortage of wholesale options in every major U.S. data center market and given the timing of the speculative construction,we anticipate that continuing through the end of the year.
  • There are only 3 wholesale data centers in the U.S. with over 45,000 sf with 6 MW that can offer immediate occupancy.
  • There are 21 properties being marketed in the U.S. as powered shells. Only two properties have had any leasing activity in the U.S. during the last 3 years for a data center reuse. This should change as the aforementioned is leased up over the next twelve months.

Spotlight:Dallas-Fort Worth

Dallas-Fort Worth (Oct 2009)

National Highlights

  • 3rd Quarter had the strongest leasing activity for the year and that pace is expected to continue through the end of the year and first quarter 2010.
  • Social networking companies,cloud platforms,and hosting companies dominated new leasing activity while large corporate enterprise users continue to dominate the renewal market due to timing of original leases signed over 10 years ago. (Equitable renewal rates remain challenging blurring the lines between square footage and allocated power).
  • Since June,a number of major data center colocation companies and hosting companies have received funding including Digital Realty Trust($258.6M) Equinix($363.8 M),Switch &Data($100 M),Terremark ($413.7M). There have been a . . . →Read More:Dallas-Fort Worth (Oct 2009)