Demand from Financial Services Drives NYC Data Center Vacancy to New Low
Insatiable demand for data center space drove New York Tri-State’s vacancy rate to an all-time low of 9% in the sector for the first half of 2022, according to CBRE’s North America Data Center Trends Report. The financial services sector remained the dominant player in the market’s leasing activity, which helped net absorption reach 16.0 megawatts in H1.
To meet demand, major data center operators are adding supply at a rapid pace, with under-construction activity at a 10-year high of 67 MW in H1 2022.
“In addition to the never-ending demand by financial services companies, hyperscalers are also beginning to make waves in the region looking for capacity,” said Robert Meyers, SVP with CBRE’s Data Center Solutions Group. “With 67 MW of new construction, we believe that the data center sector is well positioned to meet the growing demand, but more supply may be needed in the future.”
Pictured: DataBank’s under-construction 30-MW data center in Orangeburg, NY.
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).
CRE courses for CE credits
Get CE course credits, centered around all things CRE. View our courses today!