Tenant Trends: Tenant Trends: DATA CENTERS DATA CENTERS
Tech ech Support Support
Data centers are propping up the state’s otherwise lackluster
commercial real estate market.Yet credit constraints are putting
a damper on future construction.
Builders Group recently finished
the interior construction of a
163,500-square-foot complex in
North Bergen for Switch and Data
Facilities Co.
It’s close proximity to the financial hub of Manhattan and good power supply makes New Jersey an attractive location for data centers. Nevertheless, the sector has been nicked by
the economic downturn, throwing the ability to build new properties into doubt.
Data centers come in two broad categories—facilities developed by large financial corporations or investment banks to fulfill
their massive IT and backup information
needs and co-location centers built by
third-party providers that serve as data
depositories for multiple entities, ranging from financial services
firms to healthcare and educational institutions and everything in
between, including government agencies, Internet/telecommuni-cation outfits and Web 2.0 companies.
The third-party providers are the most active of late, opening
several sizable projects in the Garden State, thereby making this
user group a rare bright spot in an otherwise hazy commercial
real estate market.
