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Digital Realty: $472 Million in 2009 Leasing
Data center developer Digital Realty Trust (DLR) said today that it signed leases representing more than $472 million in total cash contract value. The real estate investment trust commenced leases on 757,000 square feet of space, and signed leases for 434,000 square feet.
Rich Miller
February 11, 2010
3 Min Read
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Data center developer Digital Realty Trust (DLR) said today that it signed leases representing more than $472 million in total cash contract value. In terms of square footage, the real estate investment trust commenced leases on 757,000 square feet of space, and signed leases for 434,000 square feet. That's a substantial decline from 2008, when leasing hit 1.1 million square feet in both measures. But the 2009 results reflect a very different economic climate than the 2008 data
"We are very pleased with our leasing results for both the fourth quarter and full year 2009, particularly in light of last year's challenging economic conditions," said Michael Foust, CEO of Digital Realty Trust. "The measured approach we took over the year of aligning our redevelopment activity with real demand for our products, particularly Turn-Key Datacenter space, allowed us to manage our capital allocation and meet our return on investment objectives.
Here's a look at the leasing data for the full-year 2009:
For 2009, Digital Realty commenced leases totaling 757,000 square feet. This includes over 369,000 square feet of Turn-Key Datacenter space leased at an average annual GAAP rental rate of $177 per square foot, approximately 194,000 square feet of Powered Base Building space leased at an average rate of $59 per square foot, and approximately 194,000 square feet of non-technical space leased at an average annual GAAP rental rate of $17 per square foot. A lease commences when the tenant occupies the facility, which often lags the lease signing by a few months.
For the year, Digital Realty signed leases totaling 434,000 square feet. This includes 332,000 square feet of Turn-Key Datacenter space leased at a GAAP rental rate of $158 per square foot, over 35,000 square feet of Powered Base Building space leased at an average rate of $27 per square foot, and 67,000 square feet of non-technical space leased at an average annual rate of $22 per square foot.
Here's a look at the leasing data for the fourth quarter, ending Dec. 31, 2009:
For the fourth quarter, the company commenced leases totaling approximately 91,000 square feet of space. This includes nearly 53,000 square feet of Turn-Key Datacenter space leased at an average annual GAAP rental rate of $173 per square foot, approximately 20,000 square feet of Powered Base Building space leased at $29.per square foot, and approximately 18,000 square feet of non-technical space leased at an average annual rate of $22 per square foot.
For the quarter Digital Realty signed leases totaling approximately 156,000 square feet of space. This includes 116,000 square feet of Turn-Key Datacenter space leased at an average annual rate of $126 per square foot, 30,000 square feet of Powered Base Building space leased at $26 per square foot, and 10,000 square feet of non-technical space leased at an average annual rate of $31 per square foot.
For the full-year 2009, the Company signed lease renewals totaling approximately 1.3 million square feet, resulting in a 22.5 percent increase in GAAP rent for the leases renewed.
"The high level of leases renewed during the year reflects the mission critical nature of our customers' operations in our facilities," said Foust. "We also added a number of new, large corporate enterprise customers along with leading IT service providers and global system integrators to our roster, demonstrating the widespread adoption of our Turn-Key Datacenter product."
The Turn-key Datacenter program offers customers finished ”plug and play” raised-floor data center space, which shifts the data center development costs from the tenant to the landlord, and allows for much quicker deployment than if the customer built a new facility on its own. Powered Base Building (PBB) is undeveloped space with the power and fiber connectivity already in place, allowing for easy expansion.
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