2016 Data Center Real Estate Acquisitions Report - Year End Review

Data center real estate acquisition activity for the full year of 2016 yielded approximately $1.699B of data center real estate transactions of totaling 6,207,737 SF. In comparison, full year 2015 activity totaled $750 Million and 4,394,407 SF of space.

High quality data center assets in Tier 1 markets will continued to be pursued by the institutional, private equity and data center REIT buyers bringing a competitive buyer process pending strength of tenant base, length of leases, underlying real estate and quality of the facility. As a number of the larger Tier 1 long-term, single-tenant assets and other low hanging fruit have been acquired over the past several years, investors will spend more time evaluating multi-tenant data centers and investment opportunities in Tier 2 markets.

With one recent interest rate increase and more anticipated in 2017, the interest rate environment may create an interesting buyer and seller dynamic.