Appraisal Of Data Center -comps

[becktodd1111]

Need Information Of Comps & Articles Pertaining To Data Center

Range Of Comps Rba 75,000sf- 200,000sf

High Power

$100-$300 Per Ft

Any Articles Would Be Appreciated/trends/surveys

 

[PL1957]

Need Information Of Comps & Articles Pertaining To Data Center

Range Of Comps Rba 75,000sf- 200,000sf

High Power

$100-$300 Per Ft

Any Articles Would Be Appreciated/trends/surveys

Good luck to you - these are extremely complicated assignments with a lot of moving pieces. The hardest part is separating out the personal property from the real estate since the lines are really, really fuzzy. Search the Lum Library, there are some good resources there. Lots of stuff available on line - several major owners of data centers are publicly traded so acquisitions/dispositions and often rental rates are in the SEC filings.

 

[al042077]

Data Center Resources

I think PL1957 had some good advice. I found several comp leads in SEC filings and internet searches for "data center" sale (note the quotes around data center so you only get results that include the entire phrase).
It's been a little while, but I came across a few resources. The best I found was the Uptime Institute (http://uptimeinstitute.org). There is a resources area with white papers. One I found really helpful was "Tier Classifications Define Site Infrastructure Performance." It's available for download at their site - you just have to fill-out an informational form.
What I found was that there were very limited data and resources for this type of property. In my research, I found no "normal" leases. Everything I found was built-to-suit or sale/leaseback. The only "rents" were hosting providers charging to provide space on their server floor, but that seemed more like a business value. I found a few sales nationally, but they ranged (if I remember correctly) from about $65/SF to about $360/SF, well short of the cost to build these things. Also, confirming sales was difficult. Most people didn't feel safe disclosing the information. Also, it was very difficult to track down sales in all these different national markets. Based on the reported sales, it seemed as though a large adjustment for obsolescence would be justified in the Cost Approach.
I interviewed some data center operators. They reported needing:

• Redundant utility services
• Redundant fiber-optic access
• Locations in suburban (almost rural) areas
• Cheap electricity

That's about all I remember. I hope this helps.
David

 

[becktodd1111]

Thanks David

Very useful information- I have ran across the same circumstances in doing research.