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New Data Center Supply Spells More Options for Large Users

The third-largest data center market in the U.S., Chicago has also been a supply constrained one. However, it added 43 megawatts in 2017 and has another 16.6 MW under construction, CBRE said in a new report.

“Chicago is a tight market, but the latest deliveries will provide larger users, who have accounted for a majority of the market absorption in recent years, options to deploy additional infrastructure under quicker time frames,” said Aaron Kulick, first VP with CBRE’s Data Centers Solutions team. “We’ve seen similar conditions in the past drive strong market activity.”

Chicago’s data center sector was among the most active nationally in terms of leasing activity during 2017. On the investment sales front, the largest single-asset deal nationwide last year was Digital Realty’s $315-million acquisition of Carter Validus’ facility at 505 N. Railroad Ave.

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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 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).

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