Wednesday, October 13, 2010

Digital Realty Sees "Favorable Pricing in Key Markets"


>>Last week's Equinix (EQIX) panic selling has renewed fears among many investors that wholesale data center space and co-location cabinet pricing are about to drop. However, Digital Realty (DLR) put out a statement to the contrary yesterday, with CEO Michael Foust commenting that "we continued to see very favorable pricing in all of our key markets", with regards to 3rd quarter leasing activity.

The strong pricing environment was evident in the company's disclosure on lease rates, where it mentioned that new leases signed for its Turn-Key space had an average initial lease rate of $198 per square foot, nearly 40% higher than leases signed in previous quarters but commenced in the first three quarters of this year, which had an average rate of $143 per foot.

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