CB Richard Ellis reports record 1.7 million square feet of European datacenter take-up

CB Richard Ellis, a  leading global real estate advisor, has announced that the strong final quarter of 2007 has resulted in a record 1.7 million square foot of total take-up in the European datacenter market for the year. The take-up was 37 per cent greater than the combined totals of 2006 and 2005. This shows year on year growth of 148 per cent. Total market take-up for Quarter 4, 2007 was 558,500 square foot, which represented 33 per cent of the total year - the second highest quarterly total take-up ever (Q2 2007 being the highest ever).

Total market take-up in Quarter 4 showed an increase of 310,057 square foot on the previous quarter. This was due to two large shell deals in the London market combined with continued growth in the Carrier Neutral Hotel market across Europe. The take-up was split 36 per cent to the Carrier Neutral Market (198,447 square foot) and 64 per cent in the shell market (360,000 square foot).

Take up in the Carrier Neutral Market, was split between London (45 per cent), Frankfurt (22 per cent), Amsterdam (18 per cent) Paris (9 per cent) and Madrid (5 per cent).

Andrew Jay, head of Technology Practice Group, CB Richard Ellis, said: "Over 2007 we have continued to see the London market go from strength to strength. We have also seen the predicted rise of the Frankfurt market. We also witnessed the rise in demand from all other sectors in particular the technology sector, which is encouraging for the outlook for 2008. However, given the current economic climate post credit squeeze and concerns over the potential high amount of new supply we expect to see a cautious start to 2008 particularly in the first two quarters.€VbCrLf