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

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