Data Center Vacancies Drop to All-Time Low for NYC Region
Driven by increased demand from cloud providers and from health care and financial services companies, the New York Tri-State region saw data center vacancy drop to an all-time low of 8.8% in 2020, according to CBRE’s latest North American Data Center Trends Report.
The regional market saw 3.3 megawatts (MW) of net absorption in 2020, down from the nearly 9.0 MW recorded during 2019. New construction underway will add 23.6 MW of capacity, bringing much-needed supply to the market’s total inventory, which stood at149.1 MW at the end of 2020.
“The Tri-State market turn-key data center capacity is nearing historic lows fueled by social media companies, as well as more traditional users like health care and financial services companies,” said CBRE’s Jon Meisel. “The lack of supply is reaching dire levels in terms of accommodating ongoing expansions, not to mention attracting new users to our market.”
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).