Data centers shine

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From Greg Zais
Vice President
Jones Lang LaSalle

Greater Boston is one of 14 emerging  markets for datacenters in the country right now according to Tier 1 Research. I expect that the market will continue to grow here as demand shows no sign of abating.

The acquisition by third party telecommunications giants Centurylink, Windstream, TimeWarner, and Earthlink, with centers in Massachusetts, has strengthened their financial and competitive positions.

Tenant retention has been historically high here. Price competition is heating up as owners compete to secure tenants prior to new construction hitting the market. At present there is 52,000 s.f. of available operations space here. We are currently tracking 62,000 s.f. of planned data center expansion.

I expect decreasing supply until new construction is delivered in Q3 and 4 of 2012. Pricing next year will be dependent on whatever potential demand translates into near term space absorption.

– Greg

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