Digital Realty Trust's facility in Clonshaugh, Dublin.
(WEB HOST INDUSTRY REVIEW) — Data center operator Digital Realty Trust (www.digitalrealtytrust.com) announced on Wednesday it has had strong leasing activity for both the fourth quarter and full year 2008.
The announcement comes off the heels of Digital Realty Trust signing a major lease in November with Irish telecom Eircom for a new, ground up data center to total approximately 124,500 square feet in Dublin, Ireland.
The company reports it signed over $1 billion in lease contracts in 2008, more than twice the contract value for leases signed in 2007. The lease signings amounted to about 1,144,000 square feet for the year ended December 31, 2008, a 50 percent increase over leases for the year ended December 31, 2007.
These lease contracts include nearly 696,000 square feet of turn-key data center space leased at an average annual GAAP rental rate of $142.00 per square foot, over 269,000 square feet of powered base building space leased at $42.00 per square foot, and about 180,000 square feet of non-technical space leased at $22.00 per square foot.
In the fourth quarter, the company signed leases totaling approximately 320,000 square feet of space, which ncludes nearly 164,000 square feet of data center space leased at an average annual GAAP rental rate of $154.00 per square foot, about 119,000 square feet of powered base building space leased at $49.00 per square foot, and approximately 38,000 square feet of non-technical space leased at $15.00 per square foot.
For all of 2008, the company signed leases spanning 1,136,000 square feet, which includes 594,000 square feet of turn-key data center space leased at an average annual GAAP rental rate of $153.00 per square foot, over 299,000 square feet of powered base building space leased at $56.00 per square foot, and about 242,000 square feet of non-technical space leased at $18.00 per square foot.
Finally, in the fourth quarter, the company signed leases totaling about 276,000 square feet of space, which includes 120,000 square feet of turn-key data center space leased at an average annual GAAP rental rate of $180.00 per square foot, about 8,000 square feet of powered base building space leased at $54.00 per square foot, and about $149,000 square feet of non-technical space at $17.00 per square foot.
“Total lease commencements for the year ending December 31, 2008 increased 50 percent over the same period in 2007, primarily due the strong demand for high quality data center space combined with widespread adoption of our turn-Key data center product,” says Michael F. Foust, CEO of Digital Realty Trust. “Leased square footage commencing for this flexible, dedicated IT infrastructure solution was over four times higher in 2008 than for leases commencing in 2007.”
Digital Realty Trust owns, acquires, redevelops, develops and manages technology-related real estate, offering facilities for supporting mission critical infrastructure, with advanced cooling, power, redundancy, and sustainability features to ensure that critical applications are available while optimizing energy efficiency.
According to the DRT website, the company’s turn-key data center solutions offer “physically secure facilities with power and cooling architectures that have been optimized for green data center operations,” while its powered base building data centers are “shell facilities that are offered to firms seeking to perform a data center build out and operate their facility using their own personnel.”
In other data center news, Security firm Symantec announced on Tuesday the results of its 2008 State of the Data Center report, which show that data center managers are trying to meet the growing demands of user expectations and higher levels of performance, while ultimately trying to reduce costs.
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