equipment. “Right now that number is in excess of 85%, which
for a data center is full,” he says. “The level of demand for data-center capacity in New York/New Jersey is extremely high.”
In a co-lo facility, a company typically signs for what is termed a
cabinet, or a 30-square-foot area where the equipment is stored.
In the New York/New Jersey region, a cabinet leases for between
$800 and $2,000, Golding says. The third-party providers offer a
menu of services that varies from simply making sure the electric power stays on to the actual maintenance of the application
being used.
Another option is to go into an abandoned data center, of
which there are several around the state. Although they garner
a lot of interest, such older facilities may not meet today’s power
requirements. “It may have capacity of 50 watts a square foot,”
Steffens says. “A new one needs 100 to 200 watts a square foot. We
“Co-lo operators and corporations have stopped building any of their data centers just because of the credit crunch.”
SEAN BRADY
Cushman & Wakefield
work with the owner to determine whether we can provide the capacity they need and if we can’t we let them know that upfront.”
Even though the development of new data-hosting facilities is
currently on a hiatus, there is an enormous amount of pent-up
demand not only from the users of data-center space but the
co-lo providers that want to have facilities up and running when
the economy turns. Regardless of the economic conditions, our
society’s seemingly endless capacity to generate electronic data
ensures the need for more facilities to store that information.
There is also the breakneck speed of technological changes that
could make a data center obsolete in an eye blink.
“The longer they delay these projects, the further they get behind with the technology they have in data centers or the ability
to provide new applications or new products,” Steffens says. “We
are seeing more people starting to look.”
Likewise, Brady reveals that co-lo providers are now looking
for new facilities, despite the lag in demand. “These data-center
operators know there is a fair amount of pent-up demand that is
developing within the marketplace,” he says. “One would hope
they could obtain funding for new centers toward the end of the
second quarter of next year and that there will be a new supply
coming on line the second half of 2010 and into 2011.”
For its part, Russo plans to stay active in the market. “The
financial crisis is reaching the data center sector,” Pembroke
admits. “But the trends point to increased activity in the coming
months and years.”—RENJ
NEW JERSEY
HOSTED BY REAL ESTATE FORUM, REAL ESTATE NEW JERSEY AND GLOBEST.COM
Y
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S E T
.C T OM October 22, 2009 Teaneck Marriott at Glenpointe, Teaneck, NJ
8th Annual
Register Today: www.RealShareConferences.com/NewJersey
Join an expected
550+ executives and:
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Sponsor
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Sandler P.C.
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Hospitality Sponsors
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RealShare NEW JERSEY will once again lead the conversation of
New Jersey real estate on October 22nd. Don’t just take our word
for it; take the word of those who attended last year’s event:
A “very professional” event with “an excellent, diverse audience base.”
—BONNI HELLER, Broker, Cushman & Wakefield of New Jersey, Inc.
“Great interaction” and “a reinforcement during these tough times.”
—STEPHEN TOMICKI, previously Business Development Manager, T&M Associates
“Overall, always a good conference to attend.”
—PAUL HOYLE, Director of Development, Ignarri-Lummis Architects LLP
CONTACT US
Sponsorship Information
Jennifer McCabe
(732) 212-8535
jennifer.mccabe@incisivemedia.com
General Information
Jason Young
(212) 457-9683
jason.young@incisivemedia.com
