Northern Virginia Update

National Highlights

  • Improving economic conditions,favorable views for recovery and the return of capital availability are driving activity in the data center sector.
  • For both large and small enterprise data center users,demand trends continue to favor operating expense models that call for outsourcing some infrastructure and service components.
  • Supply in the pipeline primarily consists of wholesale space. An increasing number of smaller wholesale suites are becoming available,generating higher levels of commerce and blurring lines differentiating wholesale and retail models with respect to infrastructure.

Spotlight:Northern Virginia

  • Virginia has seen increasing design-build interest from the user community,with a number of operators rumored to . . . →Read More:Northern Virginia Update

Duke Energy and Progress Energy Announce Merger

Duke Energy and Progress Energy have announced a merger agreement to create the largest utility in the United States. The combined utility – subject to shareholder and regulatory approvals,which are expected to take a year – will serve over 7 million customers in North Carolina,South Carolina,Florida,Indiana,Kentucky and Ohio,all regulated markets. The merger is intended to facilitate generation and infrastructure investments at a time when utility margins are tight. Progress and Duke also project improved operational efficiencies,particularly in the Carolinas. In short,the merger could result in lower prices, and improved infrastructure means improved reliability,both good outcomes for data centers. A merger . . . →Read More:Duke Energy and Progress Energy Announce Merger

High Frequency Trading Video -60 Minutes Clip

Click on the link below to view the 60 Minutes video that looks inside the secrets of high frequency trading:http://www.cbsnews.com/video/watch/?id=6945451n.

Northern Virginia (Mar 2010)

National Highlights

  • Lack of capital and strong demand has led to depletion of suitable options,causing many users to consider design build solutions and private capital sources.
  • Nationally,there are just six single-story properties that have over 30,000 square foot of raised floor built-out and available for occupancy today. These six options average 1.2 MW per 10,000 square foot.
  • On the investor side,there are only six data centers on the market for sale that were either built or renovated since 2001.  There are a couple of off market opportunities available as well  that will  be very attractive.

Spotlight:Northern Virginia

Northern Virginia (Sep 2009)

National Highlights 

  • Demand is outpacing supply three-fold.
  • Colocation &wholesale pricing is up by 15% compared to last year.
  • Several new colocation and wholesale companies are looking to roll out national expansions.
  • Data centers represent the only real estate sector to see an increase in valuations and rental rates this year,which will drive new sources of equity to the space.
  • 2nd Quarter was slow for wholesale transactions as enterprise users are still rebounding from last year’s credit crunch,but third quarter has been strong and is expected to remain strong.

 Spotlight:Northern Virginia