The data center development scene continues to get busier, as new players emerge and existing players team up on projects. A good example of this trend is today's announcement that The Benaroya Company will partner with Real Property Investors and O’Keefe Companies to acquire and develop data centers.
The three companies have been partners on a variety of commercial projects in the Pacific Northwest over the past 25 years, including high tech business parks, office buildings, industrial parks and shopping centers. They now see an opportunity in the data center market.
"Our increased focus on data centers is based on the tremendous growth in demand for data center space" said Larry Benaroya, principal of The Benaroya Company. “We recently completed construction of our state of the art LEED Gold Certified South Hill Data Center in Puyallup, Washington. After meeting with many data center users and evaluating the dynamics of the market we have become convinced that there is a significantly larger need and demand."
Boise HP Deal a Prototype
The group's strategy was reflected in Benaroya's recent acquisition of a former HP data center in Boise, Idaho.
"The U.S. market is filled with a large number of traditional high quality production facilities which are ideal for adaptive reuse as data centers," said Mike McKernan, CEO of Real Property Investors. "Many companies also have existing data centers that no longer satisfy their needs. Our recent acquisition of a former HP data center in Boise is a good example."
Real Property has worked with Benaroya on projects including the acquisition and sale of the former Komatsu silicon chip manufacturing facility in Hillsboro Oregon, and the acquisition and repositioning of both the Seattle-area South Hill Data Center and Boise Data Center.
The Seattle-based O'Keefe companies has developed or acquired in excess of four million square feet of commercial real estate projects to date.
"This isn’t just about consumer cloud computing” said Tom O’Keefe, principal of O’Keefe companies. “There is a tremendous and rapidly increasing need for secure data center space for social media, business and financial, medical, legal and municipal requirements. Computers may be getting smaller but images and multimedia files continue to grow in size. Also, more efficient 'green' data center facilities are an absolute requirement for many users while they evaluate their future data center needs."
The Benaroya Company is a full-service commercial real estate company founded in 1956. Benaroya is active in acquiring, developing and managing data center, office, and industrial properties in the Pacific Northwest, and is also investing in high-tech companies throughout the region.