2013 Data Center Real Estate Acquisitions Report - Year End Review

Data center real estate acquisition activity for the full year 2013 yielded a total of $1.292 billion of total transactions with 7.387 million SF of space sold. This follows just over $2B worth of transactions in 2012. Geographically, the acquisitions were spread out throughout the US.

The data center acquisitions market was very active in 2013 after a somewhat tepid start during the first half the year. Notably, GI Partners made a big splash through its acquisition of the 663,000 SF One Wilshire Building in Los Angeles for $437M in July 2013.

Cap rates on average came down during 2013 as buyer competition heated up for quality assets with good credit corporate tenancy and long term lease commitments. Competition will remain among buyer groups for well positioned, highly improved data center assets in Tier 1 and Tier 2 markets.