Friday, March 29, 2024 Mar 29, 2024
64° F Dallas, TX
Advertisement
Commercial Real Estate

CBRE: Robust Demand For DFW Data Center Space

As new projects begin to come online later this year and into 2017, competition among providers will increase.
By |
Image

North Texas data centers saw record-breaking activity in 2015, leading into a strong first half of 2016, according to CBRE Research’s second-quarter national data center report. The firm says cloud service providers (CSPs) have seen significant demand, with enterprise users adopting cloud storage at a faster rate than anticipated.

Total net absorption in Dallas-Fort Worth for the first half of 2016 came in at 6.7 megawatts. Vacancy rates dropped to 20.5 percent at the mid-year point, down from 22.5 percent at the end of 2015.

Delivery of new supply will be a big factor over the next 18 months. CBRE is currently tracking 730,000 square feet and 49 megawatts of wholesale colocation product under construction, with projects set to deliver in the next three to 12 months.

As new projects begin to come online later this year and into 2017, competition among providers will increase—especially for anchor tenants for new projects.

Haynes Strader Jr. with CBRE’s Data Center Solutions Group said he expects data center absorption to pick up significantly over the next several months. “This is as an opportune time for users and tenants to exercise the competitive nature of the Dallas market to drive pricing and terms in their favor,” he said.

Related Articles

Image
Arts & Entertainment

Here’s Who Is Coming to Dallas This Weekend: March 28-31

It's going to be a gorgeous weekend. Pencil in some live music in between those egg hunts and brunches.
Image
Arts & Entertainment

Arlington Museum of Art Debuts Two Must-See Nature-Inspired Additions

The chill of the Arctic Circle and a futuristic digital archive mark the grand opening of the Arlington Museum of Art’s new location.
By Brett Grega
Image
Arts & Entertainment

An Award-Winning SXSW Short Gave a Dallas Filmmaker an Outlet for Her Grief

Sara Nimeh balances humor and poignancy in a coming-of-age drama inspired by her childhood memories.
By Todd Jorgenson
Advertisement