Recent Data Center Leasing Rates

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In its latest SEC filing, Digital Realty Trust (DLR) has shared information about its leasing rates for 2007. The data aggregates rates for leases that were signed and commenced in the fourth quarter and for the year as a whole. A lease commences when the tenant occupies the facility, which often lags the lease signing by a few months.

New Signed Leases: For the quarter ending Dec. 31, 2007, Digital Realty signed leases for more than 429,000 square feet of space. All lease rates listed are GAAP (Generally Accepted Accounting Principles). Here’s how that breaks down by lease type and rate:

  • 245,000 square feet of Turn-Key Datacenter space leased at an average annual rental rate of $125.00 per square foot. Turn-Key space announced in the fourth quarter included leases for United Layer in San Francisco, Carpathia Hosting in northern Virginia and Savvis Inc. in Boston and Chicago. For the full year, Digital leased 435,000 square feet of Turn-Key space for an average $130.00 per square foot.
  • 112,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $40.65 per square foot. Full-year leasing for Powered Base Building space totaled 419,000 square feet at $38 per square foot.
  • 72,000 square feet of non-technical space leased at an average annual GAAP rental rate of $20.90 per square foot. For all of 2007, Digital leased 144,000 square feet of non-technical space at an average annual rate of $21.50 per square foot

Turn-Key Datacenter is fully developed for data center use, while Powered Base Building is undeveloped space with the power and fiber connectivity already in place, allowing for easy expansion.


Now let’s take a look at the data on Digital’s lease commencements in calendar year 2007, which totaled 761,000 square feet. As we noted, these trail lease signings by a few months.

  • 134,000 square feet of Turn-Key Datacenter space leased at an average annual rental rate of $143.60 per square foot.
  • 550,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $36.00 per square foot.
  • 77,000 square feet of non-technical space leased at an average annual GAAP rental rate of $19.90 per square foot.

Digital Realty’s Turn-Key space has been snapped up by customers including Savvis (SVVS), EDS, Computer Sciences Corp., British Telecom (BT), Cogent (CCOI), Net2EZ, Edmunds.com and CyberVerse.

Keep in mind that data center leasing rates vary widely from one geographic market to the next, and many of the buildings owned by Digital Realty Trust are located in high-demand markets. Last year Digital shared its data center leasing rates for specific facilities in its annual report.

About the Author

Rich Miller is the founder and editor at large of Data Center Knowledge, and has been reporting on the data center sector since 2000. He has tracked the growing impact of high-density computing on the power and cooling of data centers, and the resulting push for improved energy efficiency in these facilities.