New York & Tri-State + Tri-State + Industrial | March 10, 2023

Financial services tenants spurred a 70% year-over-year increase in data center leasing for the New York Tri-State region, CBRE reported

Data Center Leasing Jumps 70% in NY Tri-State Region

Activity from financial services companies drove data center leasing in the New York Tri-State region in 2022, according to a new report from CBRE. The region recorded 18.1 MW of data center space leased in 2022, more than 70% higher than 2021.

“Demand by financial services companies continued unabated during the second half of last year and in many cases the recession was the impetus for the surge in outsourcing to third party colocation service providers, as more companies looked to divest from owning on-premises equipment,” said Robert Meyers, SVP for the CBRE Data Center Solutions Group.

According to the CBRE report, 105.4 MW of capacity is under construction in the Tri-State region, marking an unprecedented increase in construction volume. Notable activity includes the expected delivery of 9 MW of capacity in Piscataway, NJ by QTS and CoreSite’s $62.5-million purchase of 215 County Ave. in Secaucus, NJ.

Pictured: A CoreSite data center in Secaucus, NJ.

Connect

Inside The Story

CBRE's Meyers

About Paul Bubny

Paul Bubny serves as Senior Content Director for Connect Commercial Real Estate, a role to which he brings 13-plus years’ experience covering the commercial real estate industry and 30-plus years in business-to-business journalism. In this capacity, he oversees daily operations while also reporting on both local/regional markets and national trends, covering individual transactions across all property types, as well as delving into broader subject matter. He produces 15-20 daily news stories per day and works with the Connect team and clients to develop longer-form content, ranging from Q&As to thought-leadership pieces. Prior to joining Connect, Paul was Managing Editor for both Real Estate Forum and GlobeSt.com at American Lawyer Media, where he oversaw operations at both publications while also producing daily news and feature-length articles. His tenure in B2B publishing stretches back into the print era, and he has served as Editor in Chief on four national trade publications. Since 1999, Paul has volunteered as the newsletter editor of passenger rail advocacy groups (one national, one local).

Order Reprints