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Tri-State’s Data Centers See Lower Vacancies, More Preleasing
Demand from financial enterprises resulted in positive leasing momentum for data centers in the New York Tri-State region in the first half of 2018, CBRE said in its latest U.S. Data Center Trends Report. The market’s 2.5 megawatts (MW) of net absorption brought the vacancy rate down to 14.2%.
At the same time, the steady pace of leasing activity brought about an uptick in construction activity. Led by Iron Mountain, Digital Realty and QTS, the market’s construction pipeline rose to 16.5 MW. More than 23% of this under-construction capacity is preleased—the highest level of preleasing in three years.
“In-market expansions, primarily from financial and health-care companies, should result in additional absorption for the remainder of 2018 and into the first part of 2019,” said CBRE SVP Jonathan Meisel. “Traditionally driven by retail colocation activity, the New York Tri-State market captured both smaller wholesale and retail deployments in H1.”
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