Issues Most Impacting Data Centers During 2011
- Reid McConnell Tax Act increased the number of companies spending their own capital to build out space as a
n alternative to turn-key data center solutions. - Due to increased competition,wholesale pricing is flat on a national basis. Downward pressure on pricing is more likely operator specific than market specific.
- The increased number of developers / operators has provided additional models. Increased flexibility by developers provides tenants greater opportunities to build their desired density. Furthermore,overly dense models (200 watts/sf) will take longer to lease up in certain markets (e.g., Chicago,New York).
- Wholesale speculative construction costs are down between 15-20 percent due to economies of scale and off-site modular construction.
- Significant uptick in leasing activity between 400 kW and 600 kW users. This has further blurred the lines between wholesale &colocation.
Strongest Markets For Wholesale Leasing Activity During 2011
- Santa Clara
- Suburban Chicago
Largest Wholesale Turn Key Transactions Leases Year To Date
- Zynga 9 MW Santa Clara,CA
- Twitter 8 MW Atlanta,GA
- RackSpace 7.9 MW Elk Grove Village,IL
- Telx 6 MW Santa Clara,CA
- Savvis 4.5 MW Santa Clara,CA
- Equinix 4.5 MW Seattle,WA
- Softlayer 3.4 MW Santa Clara,CA
- Server Central 3 MW Elk Grove Village,IL
- Salesforce 2.6 MW Elk Grove Village,IL
- Apple 2.28 MW Santa Clara,CA
- Salesforce 2.275 MW Ashburn,VA
Largest Build To Suits/Power Based Building (PBB)
- Facebook,Phs II 300,000 sf Forest City,NC
- Time Warner 178,000 sf Charlotte,NC
- Chevron 150,000 sf San Antonio,TX
- Boeing 133,000 sf Quincy,WA
- Amazon 120,000 sf Boardman,OR
- Disney 100,000 sf Kings Mountain,NC
- Adobe 100,000 sf Hillsboro,OR
- Equinix 77,000 sf Ashburn,VA
- NetApp 55,000 sf Hillsboro,OR
- Umpqua Bank 41,800 sf Hillsboro,OR
- Walgreens (PBB) 4 MW Northlake,IL
Largest Blocks of Wholesale Space Available For Immediate Occupancy
- CyrusOne 60,000 sf (20 MW) Houston,TX
- CyrusOne 41,000 sf (20 MW) Austin,TX
- DuPont Fabros 44,000 sf (14.1 MW) Santa Clara,CA
- DuPont Fabros 60,000 sf (12 MW) Piscataway,NJ
- DuPont Fabros 60,000 sf (12 MW) Ashburn,VA
- Powerloft 50,000 sf (9 MW) Manassas,VA
- CoreSite 45,715 sf (8.5 MW) Santa Clara,CA
- Benaroya 50,000 sf (7.5 MW) Puyallup,WA
- DuPont Fabros 31,900 sf (5.3 MW) Elk Grove Village,IL
- T5 54,319 sf (6 MW) Atlanta,GA
- Quality Technology 50,000 sf (5 MW) Atlanta,GA
- Digital Realty Trust 28,254 sf (3.8 MW) Chandler,AZ
- Sentinel 20,000 sf (3.5 MW) Somerset,NJ
- CyrusOne 25,000 sf (2.2 MW) Dallas,TX
Largest New Wholesale/Colocation Facilities Announced During 2011
- CyrusOne TBD (110 MW) Phoenix,AZ
- Sabey 40 MW Manhattan,NY
- i/o (PBB) 831,000 sf (30 MW) Edison,NJ
- Telx 215,000 sf (28 MW) Clifton,NJ
- T5 206,000 sf (16.65MW) El Segundo,CA
- RagingWire 70,000 sf (14.4 MW) Ashburn,VA
- Latisys 82,000 sf (14 MW) Englewood,CO
- Data Gryd 120,000 sf (12.5 MW) Manhattan,NY
- T5 150,000 sf (10.5 MW) Dallas,TX
- Equinix (PBB) 125,000 sf (10 MW) Ashburn,VA
- Fortune 240,000 sf (7.8 MW) Hillsboro,OR
- Savvis 70,000 sf (6 MW) Piscataway,NJ
- XO Comm. (PBB) 49,000 sf (3 MW) Manhattan,NY
- CyrusOne 45,000 sf Dallas,TX
- Terremark 30,000 sf Santa Clara,CA
- Sabey TBD Ashburn,VA
2011 Investment Activity
- Verizon purchased Terremark for $1.4 B.
- Hines Global REIT purchased Fisher Plaza for $160 M. It is an office,data center and retail campus.DLR bought a 69,000-square-foot SunGard facility in Rancho Cordova,CA for $30 M or a 9 percent capitalization rate.
- Carter Validus purchased a single tenant leased data center in Richardson,TX for $28.9 M or a 8.5 percent capitalization rate.
- In a distressed 100,000-square-foot sale,601 W. Polk Street in Chicago sold to Pi Data Holdings for $10 M.
- Carter Validus is under contract to purchase 180 Peachtree in Atlanta,GA for $94.75 M. The 338,000-square-foot property is expected to close at an 8.2 percent capitalization rate.
- Sabey purchased 375 Pearl St. in for $120 M.
- DLR purchased the Red Sea Portfolio (AT&T -900 Dorothy,Richardson,TX and Verizon -2950 Zanker,San Jose,CA) for $50.3 M.
- CyrusOne purchased its leased facility at 5150 Westway Park Blvd.,Houston,TX.
- There were three power based shells that sold this year.
For the largest wholesale transactions,the numbers set forth represent what is believed to be the total commitment of the lease agreement. The build-to-suit/new wholesale transaction size by and large part represents the total size of the shell not necessarily the technical space. This is further complicated by the multiple phases of the projects and/or the total power committed to the project versus initial build out.
[...] (click image for larger view and for slideshow) Zynga,the online game provider that recently went public,and Twitter were the two largest leasers of wholesale data center space during 2011,according to the Grub Ellis National Data Center Practice year-end report. [...]
[...] (click image for larger view and for slideshow) Zynga,the online game provider that recently went public,and Twitter were the two largest leasers of wholesale data center space during 2011,according to the Grub Ellis National Data Center Practice year-end report. [...]
[...] &Ellis,a broker of wholesale data center space,recently released their Wholesale Data Center Summary for 2011. Included in their year-end summary is a list of [...]
Great info. Keep me on your mailing list.I may have a Data Ctr coming avail near Pentagon in DC. Current Govt Data Ctr