Gartner Research

Market Trends: Stable Data Center REIT Rents Could Tempt North America's Colocation Providers to Expand

Published: 22 May 2013

ID: G00248472

Analyst(s): Douglas Toombs

Summary

Average real estate investment trust rents for data center space are likely to stabilize in North America in 2013 in 2014. This could encourage colocation service providers' planning executives to increase capacity to satisfy growing demand, but they must avoid expanding too much too soon.

Table Of Contents

Introduction

Market Trends

  • REIT rents look broadly stable throughout North America
  • Market Structure Trend
    • The market's structure is blurring as REITs move into retail colocation and retail providers move into larger transactions
  • Buyers Trend
    • Enterprise buyers are re-evaluating their data center expansion plans
  • Local Trend
    • Average REIT rents in the key data center markets of New York, Chicago and Washington, DC rose in 2012

Contrarian View

Vendors to Watch

Recommended Reading

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