Posts Tagged ‘Social Networking’

Data Center Real Estate Demand “Staggering” – Monthly Market Insights from Green Street Advisors

www.reit.com In the latest edition of Word on the Beach Monthly Market Insights from Green Street Advisors, Analyst John Stewart talks about the data center market, which has generated solid buzz among real estate investors of late. Stewart said that while data center REITs had been riding high, some concerns that fundamentals in the sector may be worsening caused concern and a recent sell-off. However, Stewart said data center stocks still trade at modest premiums to net asset value. “Consider that a data center REIT like DuPont Fabros Technology (NYSE: DFT), which is the most heavily shorted REIT and among the top 50 most heavily shorted companies on the NYSE, has an in-service portfolio is 100 percent occupied and they have six years of average remaining lease term with credits like Microsoft. After the recent sell-off, it is hard to see what the catalyst is for a significant leg down from here,” Stewart said. Stewart categorized demand in the sector as robust. “The growth of online video, social networking and mobile data traffic is driving intense demand for data centers,” Stewart said. Stewart highlighted a few facts to support his case. He said there are 500 million Facebook users worldwide, and over New Year’s Eve they uploaded 750 million photos to the site. To store that much data you need about 4500 servers, which represents about 1 percent of DuPont Fabros’ portfolio. “And that was over one weekend,” he said. “Also, there is 24 hours of video uploaded to …
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