Gartner Research

Market Trends: Stable Data Center REIT Rents Foster Expansions, but Market Selection and Timing Remain Vital

Published: 23 July 2014

ID: G00262425

Analyst(s): Douglas Toombs

Summary

Average real estate investment trust rents for data center space remained stable overall in 2013, with the trend likely to continue through 2015. This stability may encourage colocation service providers to increase capacity to satisfy growing demand, but they must avoid expanding too much too soon.

Table Of Contents

Introduction

Market Trends

  • Market Participants — Understanding the Sellers and Buyers
  • REIT Rents Show Continued Stability Throughout North America
  • Market Structure Trend
    • The Market Structure Between REIT Rents Moving Into Retail-Size Transactions and Retail Providers Moving Into Larger Deals Continues to Blur
  • Buyers Trend
    • Enterprise Buyers Seek Alternatives to Traditional Data Center Expansions
  • Local Trend
    • Average REIT Rents Continued to Climb in Chicago and Washington DC in 2013 — and New York is Approaching a Price Ceiling

Contrarian View

Vendors to Watch

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