Digital Realty Trust's Phoenix data center
(WEB HOST INDUSTRY REVIEW) – Data center operator Digital Realty Trust (www.digitalrealtytrust.com) announced on Monday its leasing results for the fourth quarter and year-end 2010.
This release comes less than a week after the company announced plans to expand its Phoenix-area data center by adding 226,000 square feet of rentable data center space.
According to the press release, the company signed leases during the quarter ended December 31, 2010 totaling approximately 478,000 square feet of space. This includes over 89,000 square feet of Turn-Key data center space leased at an average annual GAAP rental rate of $184 per square foot.
“Our fourth quarter lease signings reflect strong demand for both our Turn-Key Datacenter and Powered Base Building products across multiple industry verticals in the US as well as Europe,” Michael F. Foust, CEO of Digital Realty Trust said in a statement. “Rental rates, particularly for our Turn-Key Datacenter space, vary from market to market, impacting quarterly results. Markets where we saw the strongest pricing for Turn-Key Datacenter space during the year were Santa Clara and New York Metro, which is reflected in our second and third quarter 2010 lease signings.”
Digital Realty says that of the total leases signed during the fourth quarter of 2010, approximately 44,000 square feet was space located in the US.
“We saw momentum in our sales activity continue to increase over the course of 2010, resulting in our strongest annual leasing performance to date in terms of square footage and total contract value of $1.2 billion. These results represent an increase of over 160 percent in total square footage and an increase of over 100 percent in annualized GAAP rent over 2009 lease signings,” Foust said. “Enterprise demand is driven by the consistent growth of applications in corporate IT departments as well as growth in providers of colocation and managed services. Our inventory of redevelopment space combined with the just-in-time delivery of our Turn-Key Datacenter and Powered Base Building products enable customers to expand their datacenter operations with minimal capital and execution risk. We believe these factors will continue to drive growth for the Company as we continue to meet our customers’ requirements for secure, reliable and cost effective data center facilities.”
For the twelve months ended December 31, 2010, the company signed leases totaling approximately 1.2 million square feet of space.
Digital Realty Trust recently acquired a new 370,500 square foot data center in Singapore.
About Nicole Henderson
Nicole Henderson writes full-time for the Web Host Industry Review where she covers daily news and features online, as well as in print. She has a bachelor of journalism from Ryerson University in Toronto, and has been writing for the WHIR since September 2010. You can find her on Twitter @NicoleHenderson.
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