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

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

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

New York Market Update

National Highlights

  • PowerLoft sold its 233,000-square-foot building in Manassas,Virginia,for approximately $115 million to Corporate Office Properties Trust. The property was 16 percent leased and continues to support the notion that REITS will provide liquidity for data center developers.
  • Given the number of transactions in the market,we should see a strong fourth quarter of leasing activity on a national basis.

Spotlight:New York

  • The entrance of 111 Eighth Ave. onto the investment sales market could create a shift in the Manhattan data center market.  A new owner may choose to maximize returns by converting existing office space into new data center space as . . . →Read More:New York Market Update