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December 30, 2013
Carter-Validus Buys 3rd AT&T Center
Carter Validus Mission Critical REIT has just bought its third AT&T data center. (AT&T data centers are like Pringles or episodes of Breaking Bad, once you start you cannot stop.)
The company released info on the SEC that it bought a 500k SF data center in San Diego from Pacific Bell Telephone Co for $134.5M. "The acquisition was funded by net proceeds from the company's ongoing initial public offering and its existing line of credit," officials stated in docs. AT&T will lease the facility for five years for a total $9M rent. This is the third AT&T data center facility Carter-Validus has acquired this year, including Tennessee and Wisconsin (above, which we reported here).
Intergate.Manhattan Gets to Level 3
A ninth major telecom carrier is a great holiday gift for Sabey Data Center's Dan Meltzer. (It's way better than the argyle socks we've gotten for the last 11 years.) The firm inked a huge deal with Level 3 at its Intergate.Manhattan facility, a 1.1M SF data center at 375 Pearl St in NYC. Level 3 will take up space with such players at United Fiber & Data, XO Communications, and Verizon. This is on top of being the data hub to some data crunchers as well, including the New York Genome Center, Windstream and most recently Amsterdam Internet Exchange.
So we asked Dan what three predictions he has for 2014. And overall it's gonna be a good year. "I think it's actually going to be a great year," he says, with increased leasing activity in data centers. Plus he says he expects many of the mid-sized data center players to start M&A activity to increase size and footprints. And Dan's final prediction? It can only come from a true New Yorker: "I think the Yankees are going to win the World Series."
Which Way Does Compass Point?
Compass Data Centers' Chris Crosby (second from left with Cologix's Jay Newman, DataBank's Jerry Blair, T5 Data Center's Craig McKesson, and Chicago Title's Holden Heil at a recent Bisnow event) just revealed his 2014 predictions in a column he wrote for Data Center Dynamics. Here's a highlight of a few of his Nostradamus visions:
Larger players will buy smaller players to expand their footprints.
Customers will demand verification from data center operators on their claims, especially in the Tier III world.
Firms like IBM and Iron Mountain will begin to offer data center solutions.
And finally, both Jennifer Anniston and Kim Kardashian will be dumped but will "sink their clutches into some new unsuspecting sucker, I mean paramour, within days of their heart wrenching breakups."
Predictions From Atlanta
Some predictions were made by our panelists at our recent Atlanta Data Center Outlook. PEER1 Hosting's Blake Clark (on left with Carter Validus' John Regan) says that PEER 1 is focused on reducing the amount of cooling SF needed in its data centers, and even raising interior temperatures. "We're working on designs now on newer data centers to push our machines into the 100%, 105%, maybe even 110% efficient." For clients, they don't care so much about the temperature of the data center, but the bottom line cost, which will be less with less cooling. (Bottom line: if you're going to a data center, bring a towel.) And John says Cloud servicing will become even more important, especially as even basic appliances become connected to the Internet. "The adoption rate [for Cloud] will very likely end up going up, and perhaps very rapidly," John says.
AiNet Sees Deteriorating Economy
We also reached AiNet's Deepak Jain for his three 2014 predictions. And his No. 1 prediction: Your personal data will continue to be "exploited all over the place" as data center opeators continue to fight to protect data from very clever and evolving hackers. (The scary part is that some of these hackers are only 12, so they've got a long career ahead.) His two other predictions:
As people continue to find "new boogeymen in the closet," the talk of new surveillence rules and regs will continue to "ramp up."
As the Fed tapers its bond buying program, the cracks in the economy masked for the past few years will become re-exposed, and company earnings will decline since most companies didn't invest in capital expenditures in the past few years.
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