Menu

01/17/20 Five 9s Digital Knowledge

2019 Data Center Real Estate Acquisitions Report


Data center 2019

Data center real estate acquisition activity for the full year of 2019 yielded approximately $2.763 Billion of data center real estate transactions totaling 7,989,202 SF. In comparison, full year 2018 total activity was $3.089 Billion of transactions and 8,055,356 SF of total space.

Pricing

Interest rates came down throughout 2019 after several bumps in 2018. Due to current borrowing costs, cap rates have gradually compressed over the past 12 months for good quality data center assets. Data center assets in Tier 1 and Tier 2 markets are trading in the 6%-7% cap rate range pending overall lease dynamics, asset quality and market fundamentals. Data center assets with shorter term leases, multi-tenant occupancy and lack of clear tenant credit are trading in 6.75%-7.5% cap rate range with various factors that push acquisition pricing outside of this range.

M&A

M&A activity continued to be robust with an estimated 18% increase in the number of deals for the first half of 2019. Since 2015, over 300 deals have closed with an aggregated estimated value of over $65B, which is evenly mixed between public and private buyers.

Trending

The enterprise sector continues to gradually divest of their corporate-owned data centers as they transition IT workload to the cloud and other third-party data center operator solutions. Corporations continue to see value in selling their data centers to high quality data center operators and right-size their utilization in the facility while transitioning the day-to-day operations, capex and opex to an a data center operator. Data center operators recognize immediate value in these transactions as they gain an anchor tenant via the partial-leaseback and have additional data center space to accommodate new customers.

Recent data center sale-leaseback or partial-leaseback transactions include PNC Bank, Bank of America, Perspecta (DXC), NTT, Ensono (WiPro), Sungard AS, and Nationwide Insurance with several other deals pending with closings expected in Q1 2020.

For the full report, please see: 2019 Data Center Real Estate Acquisitions Report

All Knowledge Tags

$DFT $DRT 2103 data center acquisition report 350 E Cermak AT&T AWS AWS Cloud AWS data center Amazon Cloud Amazon data center Ashburn Data Center Market Atlanta Data Center Leasing Atlanta Data Center Market Azure BC Partners buying Centurylink data centers Barron's Data Center Real Estate Bitcoin Mining North Carolina Bitcoin Mining Power Rates Bitcoin Mining Washington Blockchain Business Continuity Buys Data Center 2018 Buys Data Center 2019 C7 Data Center CIO CIO Insight CIOForum CONE CONE REIT Sale CONE Sale COR CTO Carter Validus REIT Carter Validus sells data centers Centurylink Data Centers Centurylink buys Level 3 Centurylink data center business Centurylink selling data centers Cloud Cloud Computing Cloud Data Centers Cloud Spending Colocation CoreSite Covid-19 Cryptocurrency Mining Power Cryptocurrency mining space CyrusOne CyrusOne Acquisition CyrusOne Atlanta data center CyrusOne Bidder CyrusOne Data Center Atlanta Cyxtera Technologies DLR DLR buys DFT DRT Dallas Data Center Activity Dallas data center Data Center Data Center Acquisitions 2019 Data Center Acquisitions Report 2018 Data Center Activity 2018 Data Center Broker Data Center Brokerage Data Center Cloud Demand Data Center Consolidation Data Center Consulting Data Center Covid Data Center Investment Data Center Investments Data Center Leasing Data Center M&A Data Center Market Data Center Market Research Data Center Mergers & Acquisitions Data Center Multiple Data Center News Data Center Purchase Data Center REITs Data Center Real Estate Data Center Real Estate Investing Data Center Report Data Center Tax Incentives Georgia Data Center investing Data Center leasing report Data Centers Data Centers 2019 Data Centers For Sale Data center absorption 2018 Data centers DataBank DataCenters# DevOps Digital Bridge Digital Realty Digital Realty Trust Digital Realty Trust Atlanta Digital Realty Trust Chicago Digital Realty Trust Dallas Digital Realty Trust acquires Dupont Fabros Digital Realty Trust merger Digital Realty buys Chicago data center Digital Realty buys Dupont Fabros. Dupont Fabros Dupont Fabros merger Durham Data Center EQIX Enterprise Data Centers Equinix Equinix Dallas Equinix buys Infomart Equinix buys Verizon Data Centers F5 Networks Facebook Atlanta Data Center Facebook Data Center Ft. Worth Data Center GI Partners GOOGL Georgia Data Center Legislation Google Google Cloud Hyperscale data center locations Hyperscale data centers Hyperscale growth IBM IBM data centers IPFS IRM data center expansion Infomart Infomart Dallas Iron Mountain Iron Mountain Data Centers Iron Mountain buys Fortrust Iron Mountain buys IO Data Centers Level 3 MapleTree buys data centers Microsoft Microsoft Cloud Microsoft Data Center Microsoft data center NXTVn New Chicago Data Center New Jersey Data Center Northern Virginia Absorption Oracle Cloud Oracle data center Peak 10 QTS QTS Data Center Atlanta QTS data center Redhat data center cloud Santa Clara Data Center Sells Data Center 2019 Sentinel Shaw Communications Switch Data Center Atlanta Switch data center Atlanta T5 Data Center Atlanta Telefonica TierPoint TierPoint# US Low Cost Power States US Power Grab US data center market report 2018 Vantage Data Centers Verizon ViaWest Virginia Beach Cable Landing Station Virginia Beach Data Center Park Virginia data center park Wall Street Journal Windstream Zayo ata center blockchain big data blockchain data center blockchain data storage blockchain file storage buys data center and colocation business buys data centers cloud data center cloud data centers data center data center acquisitions data center advisory data center broker data center consultant data center consulting data center for lease data center for sale data center investments data center leasing data center market data center market research data center news data center outage data center real estate data center sale leaseback data center sales data center tax incentives data center trends data centers data centers for sale delta data center delta outage dropbox data center emerging data center trends hybrid cloud north carolina data centers