You miss 100 percent of the shots you never take, and if you think it’s expensive to hire a professional to do the job, wait until you hire an amateur. FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU. Call me if you want to sell your property and need an estimated value. Phone / Prefer cell: 520-975-5207
Office: 480-948-5554 or email me walterunger@ccim.net. – What is a CCIM.
In Business and in Life you don’t get what you deserve, you get what you Negotiate.
contact me if you want the me to get you the value of your property.
CLICK HERE TO VIEW ALL MY LISTINGS.
September 13, 2021 Dan Rabb, Bisnow Data Centers Reporter
The geography of the data center industry throughout North America may be on the verge of significant transformation, according to a pair of state-of-the-market reports issued by industry giants CBRE and JLL.
While near-record growth for the data center industry throughout the first half of 2021 centered around the traditional data center hubs of Northern Virginia and Silicon Valley, analysts at both JLL and CBRE suggest that a more decentralized data ecosystem may be right around the corner — with future growth focused on regional hubs and secondary markets.
There are signs that longtime hot spots like Data Center Alley are facing new headwinds, and are now competing against the emergence of new data center boomtowns like Phoenix and Atlanta. Market forces may also be pushing data center operators and investors toward smaller secondary markets, a trend accelerated by a shift toward so-called edge infrastructure and growing fiber rollout across the country.
“These markets should attract more users seeking available space and power in the coming years as supply in primary markets tightens. This is evidenced by the growing construction pipeline in markets like Central Washington,” CBRE predicts in its North American Data Center Trends Report for the first half of 2021.
“Secondary markets will continue to benefit from constrained supply in primary markets as well as more affordable land prices, edge deployments, regional network connectivity needs and access to cloud on-ramps.”
The semi-annual reports released last week by CBRE and JLL show an industry continuing to grow at or near a record pace. And at first glance, it may appear that growth is centered around the same locations it always has: hubs like Loudoun County, Virginia, and California’s Silicon Valley.
Data center construction in 2021 is up 42% over last year, and Northern Virginia accounts for more than half of it. There is an additional 290 megawatts of data center space currently under construction in Data Center Alley.
But there are signs that data center development is heading toward a more decentralized footprint.
In Northern Virginia, net absorption is down from last year, and Loudoun County failed to hit its data center tax revenue target for the first time ever. More alarmingly, the area is running out of both space and power. According to CBRE, power constraints and delays in substation deliveries may interfere with future development in the region. Higher rents caused by a lack of supply in places like Virginia and Northern California may open up opportunities for other markets, analysts say.
Accordingly, 2021 has been marked by the continued emergence of Phoenix and Atlanta as data center boomtowns, largely driven by investment from hyperscalers like Facebook, Microsoft and Google.
Phoenix saw the highest percentage growth among primary markets, with 28.7 megawatts of new inventory coming online since the start of the year. Atlanta brought around 15 megawatts online, with more in the pipeline as several large cloud providers have snapped up hundreds of acres of land with future development of multiple data centers in mind. In Canada, hyperscalers have similarly been snapping up land in and around Toronto.
Both CBRE and JLL point to the potential for a more dramatic industry shift to what are now secondary markets, perhaps sooner than later. Areas like Hillsboro, Oregon, Columbus, Ohio, Miami and Salt Lake City are all seeing significant data center development, offering affordable land and power and, increasingly, tax benefits.
It’s more than just cheap land and power pushing the industry toward these new markets, however. Digital infrastructure is gradually decentralizing, with data processing and storage increasingly located at the so-called edge — closer to the end user. This means both colocation providers and hyperscalers aren’t just building massive data center campuses; they’re building smaller data centers in smaller markets close to major business hubs, allowing them to offer low latency and high performance for clusters of enterprise clients.
Development in Hillsboro, for example, has been driven largely by its proximity to Silicon Valley and the Bay Area in general, where both land and power are expensive. Hillsboro has the largest net absorption total among secondary markets, with 14.7 megawatts of wholesale colocation space snapped up since the start of the year, according to CBRE.
This trend toward the edge and toward secondary markets is likely to accelerate further due to improving fiber networks across the county boosted by government investment, which will make data center construction feasible in new areas.
“As the edge nears, successful distribution of content and information from core data centers outward is vitally impacted by the associated fiber network backbone,” said Michael Murphy, executive vice president, CBRE Network Advisory Services.
Secondary markets may also benefit from increased competition for land in existing data center hubs. According to JLL, land suitable for data center development in places like Phoenix has been snapped up by industrial developers. This is pushing up land prices and could hinder data center development in major markets as soon as this year.
The JLL report also points to concerns about water usage in places like Phoenix and Utah pushing developers to look for new ground.
Contact Dan Rabb at dan.rabb@bisnow.com
See Also: Military Veterans Could Solve U.S. Data Center Labor Woes. So, Why Aren’t They?
FROM ME: FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. Now is the time, if you are thinking of selling or purchasing your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County, Pinal County, Arizona / Office / Retail / Industrial / Multi-family / please call me on my cell 520-975-5207 or e-mail me walterunger@ccim.net. Investors and Owner / Users need to really know the market today before making a move. The market has a lot of moving parts. What is going on socio-economically, what is going on demographically, what is going on with location, with competing businesses, with public policy in general — all of these things affect the quality of selling or purchasing your Commercial Properties, Commercial Investment Properties and Commercial and large tracts of Residential Land Therefore, you need a broker, a CCIM (Certified Commercial Investment Member) who is a recognized expert in the commercial and investment real estate industry and who understands your needs. I am marketing my listings on Costar, Loop-net, CCIM, CREXi, Catylist, and various other web sites. I also sold hundreds millions of dollars’ worth of Investment Properties / Owner User Properties in Retail, Office Industrial, Multi-family and Land in Arizona and therefore I am working with brokers, Investors and Developers. I am also a CCIM and through this origination ( www.ccim.com ) I have access to marketing not only in the United States, but also international
What is a CCIM. In Business and in Life you don’t get what you deserve, you get what you Negotiate.
Are you ready to sell or purchase your Land or Commercial Building in Phoenix, Scottsdale, Maricopa County and Pinal County, Arizona, please call me?
contact me if you want the me to get you the value of your property.
CCIM DEAL MAKERS FALL 2020 THE BIGGEST DEAL WALTER UNGER, CCIM, WITH WEST USA COMMERCIAL DIVISION IN PHOENIX REPRESENTED GCG HOLDINGS LLC IN ITS $29.43 MILLION SALE OF GOLD CANYON GOLF RESORT AND SPA IN GOLD CANYON, ARIZ., TO GOLD CANYON MJ LLC.
CCIM DEAL MAKERS FALL 2020 THE BIGGEST DEAL / WALTER UNGER, CCIM, WITH WEST USA COMMERCIAL DIVISION IN PHOENIX REPRESENTED GCG HOLDINGS LLC IN ITS $29.43 MILLION SALE OF GOLD CANYON GOLF RESORT TO GOLD CANYON MJ LLC.
Click here to find out what is a CCIM:
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PRESS RELEASE: Gold Canyon resort sells for $29.4M. Walter Unger CCIM from West USA Commercial Division Brokered the Transaction.
http://walter-unger.com/gold-canyon-resort-sells-for-29-4m/
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
History of Arizona from 900 BC – 2017 -Timeline.
WHY PHOENIX? AMAZING!!! POPULATION IN 1950 – 350 K PEOPLE; “NOW 5 MIL”. – “5TH. BIGGEST CITY IN USA”
Walter Unger CCIM – walterunger@ccim.net – 1-520-975-5207 – http://walter-unger.com
Timeline of Phoenix, Arizona history
Facts of Arizona – year 1848 to 2013
CLICK HERE: Arizona Opportunity Zones As We Understand /maps. Interested!!! Please contact me.
Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix, Tucson, Arizona.
Walter Unger CCIM
Associate Broker
West USA Commercial Division
7077 E MARILYN RD.
Suite 200, Building 4.
Scottsdale AZ, 85254
Phone: 480-948-5554
Cell: 520-975-5207
FOR OVER 20 YEARS, I HAVE WORKED EXTENSIVELY WITH OWNERS AND BUYERS IN LAND, COMMERCIAL AND INVESTMENT REAL ESTATE IN PHOENIX, TUCSON AND THROUGHOUT ARIZONA. PLEASE LET ME KNOW HOW I CAN HELP YOU PLEASE CALL ME
CLICK HERE TO VIEW ALL MY LISTINGS.
Also Call me if you need an estimated value of your Property.
Call me if you want to see a map with what is in the Construction Pipeline for Apartments.
Prefer cell: 520-975-5207, or email me walterunger@ccim.net. CLICK HERE TO VIEW ALL MY LISTINGS.
Check out my professional profile and connect with me on LinkedIn.
Walter Unger CCIM, CCSS, CCLS
I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial / Investment Properties in Arizona, I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us.
Please reply by e-mail walterunger@ccim.net or call me on my cell 520-975-5207
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