Digital Realty’s Asia Pacific rates higher than in any other market

Both data center and non-technical space lease rates highest in Asia

20 April 2012 by Yevgeniy Sverdlik - DatacenterDynamics

Digital Realty’s Asia Pacific rates higher than in any other market
Digital Realty Trust data center in Singapore. Courtesy of Digital.

Digital Realty has entered into the Asia Pacific market only recently, but its properties in the region are generating more cash per square foot than anywhere else in the world.

Digital signed leases for a total of about 15,000 sq ft of turn-key data center space in Asia Pacific at an average annual rate of $251 per square foot during the year’s first quarter, the San Francisco-based real estate investment trust reported Friday.

Its average lease rate for turn-key space in Europe was $237 per square foot, and average US lease rate was $136 per square foot.

Dollars-per-square-foot may be higher in Asia, but the rate of take-up is nowhere near the speed with which Digital’s data center space is gobbled up by the US market.

The company signed leases for more than 124,000 sq ft of space in the US, which includes about 71,000 sq ft o turn-key data center space, about 47,000 sq ft of powered-base space and about 6,000 sq ft of non-technical space.

Europe was the slowest market for Digital during the first quarter. The company signed leased for about 8,000 sq ft of turn-key space at its European properties, and about 500 sq ft of non-technical space.

Michael Foust, Digital’s CEO, said first-quarter leasing results were in line with the company’s expectations. Most active markets in the US were Dallas, San Francisco, Northern Virginia, Los Angeles, Boston and Phoenix, he said.

London stood out for Europe, while Singapore and Hong Kong were most active in Asia, which was all in line with Digital’s capital deployment and development activities.

“Lease signings tend to be cyclical and these results are consistent, on average, with previous first quarters,” Foust said. “Furthermore, our pipeline of prospects is very strong across our major markets throughout the US, Europe and Asia Pacific.”

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