Digital Realty Trust Expands Austin Presence with Six Data Centers
Data center operator Digital Realty Trust announced on Thursday it acquired a six building portfolio locatedat the MetCenter Business Parkin Austin, Texas for $31.9 million.
The buildings consist of operating data centers and flex office space totaling approximately 337,000 square feet. The space is currently 90 percent leased to a range of data center, biotechnology, technology and/or telecommunications enterprises.
In the past year, Digital Realty Trust acquired facilities in Dallas, Toronto, Sydney,Phoenix, and Minnesota.
In a Data Center Knowledge (Digital Realty Trust Acquires Six Austin Data Centers), Jason Verge points out that of these acquisitions were in markets where the company says it saw very positive demand, and most of these properties were fully leased at time of acquisition.
acquisition of this portfolio achieves several key objectives for us, said Scott Peterson, chief acquisitions officer at Digital Realty. expands our existing data center footprint in the Austin market, while providing stable cash flow immediately at an attractive going in cap rate. Second, it provides near term opportunity to add value by lease existing vacant space. And third, it offers the option to convert a portion of the property to data center space over the longer term as leases expire. six buildings are located next to Digital Realty data center at 7500 Metro Center Drive, approximately five miles southeast of the Austin central business district, and nearby Austin Bergstrom International Airport.
acquisition adds inventory to a market where we have already seen substantial absorption at our existing facilities, as well as strong demand from enterprise customers, said Michael Foust, CEO at Digital Realty. is a continuation of our strategy of growing a world class data center portfolio in markets where our customers want to be located. you currently offering data center space in Austin? Do you think these data center acquisitions will help position Digital Realty Trust as a leader in the Austin data center market? Let us know in a comment.