Leases commenced on 101,000 square feet of space during the quarter, most of it's the company's most expensive space, Turn-Key Datacenter space, which leased at an average GAAP rental rate of $187 per square foot. Leases were signed for an additional 93,000 square feet during the quarter, with the company's turn-key datacenter space leased out at a rental rate of $176 per square foot.
In the same year-earlier period, leases commenced on more than 350,000 square feet, with the 190,000-square-feet of turn-key space renting for $142 per square foot. Signed leases in the third quarter of 2008 totaled 478,000 square feet, with the turn-key space renting for $155 per square foot.
A company source tells GlobeSt.com that the difference in lease rates quarter over quarter and even year-over-year cane be a function of where the leasing is taking place. Lease rates are higher in Chicago than Atlanta, she says, and exchange rates for leasing occurring in Europe also help skew the data.
Year-to-date in 2009, Digital Realty has had tenants' leases commence on 666,000 square feet and signed up another 278,000 square feet of tenants, with the negotiated turn-key lease rates for each coming in at $178 per square foot and $176 per square foot, respectively. Digital Realty did not report comparable data for the same 2008 period.
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