Data Centers

One type of commercial property that has been more popular in recent years is data centers. These buildings are used to house computers or servers and often have very high rates of occupancy and rental rates making them a great investment.

What is a data center building and what are the benefits of buying one?

Data centers are buildings that house large amounts of computers or servers, are connected to high speed internet connections, and have advanced cooling features. They can provide a great investment opportunity because of their ability to grow and typically have high rates of occupancy and rental rates. They also tend to provide stable cash flow because there is an ever-present need to keep up with technology.

The first thing you need to know before buying a data center is how much money you're willing to spend on it. You might want to think about looking at both existing data centers or brand new construction and build your own to suit.

How to find a good data center for sale

Searching for a data center can be done on Loopnet to find available listings that match your criteria for location, building type, amenities and more. Loopnet is one of the most popular sources for commercial real estate brokers, investors and tenants to connect with each other to help you find the right data center you are looking for.

Considerations when purchasing a data center

When looking to purchase a data center, you should consider the following points:

• - Location and accessibility
• - Utility costs
• - Thermal issues, power consumption, cooling capacity and other technical specifications from the data center's original design.
• - The company’s continued growth plans in order to assess potential future need for additional space or an upgrade of facilities.
• - Power/internet availability at the site location.
• - It may be in your best interest to buy a building that has been in operation for at least one year so you can get an idea of how the rental rates work.
• - You should also ask about what kind of leases are offered, when they expire and whether or not there is any rent abatement clauses. Past performance will tell you more than anything else if this business is going to be successful.

In addition to these considerations you should also consult a commercial real estate agent who specializes in commercial data center properties to consult on factors which are specific to your situation like internet access, power availability, permit and zoning regulations, municipal taxes, and employee access systems.

Looking to lease a Data Center? View Data Centers for lease