SAN FRANCISCO-Locally based Digital Realty Trust Inc. CEO Michael Foust said in a recent report that “The high volume of commencements in the fourth quarter of 2012 drove our strongest annual performance to date for lease commencements.” He adds that he is “encouraged by the continued leasing momentum from January 2013 lease signings that add $18 million in annualized GAAP revenue to our backlog.”
According to the locally based firm, “Markets that experienced the highest level of activity during the year included New York Metro, Houston, Dallas, Phoenix, Northern Virginia, Singapore and London.”
In addition, according to Foust, average annualized GAAP rental rates for new Turn-Key Flex leases signed in the fourth quarter were up on a global basis as well as in North America compared to the prior four quarters. “We believe this represents stable pricing for our data center solutions across the majority of our global markets.”
For the 12 months ended Dec. 31, 2012, the company commenced leases totaling over $134.9 million of annualized GAAP rental revenue, including nearly $8.4 million of colocation revenue. Commenced leases totaled approximately 997,000 square feet of space, including nearly 611,000 square feet of Turn-Key Flex space leased at an average annual GAAP rental rate of $168.00 per square foot, nearly 190,000 square feet of Custom Solutions space leased at an average annual GAAP rental rate of $80.00 per square foot, over 108,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $65.00 per square foot, and over 88,000 square feet of non-technical space leased at an average annual GAAP rental rate of $21.00 per square foot.
Of the total leases signed during the fourth quarter of 2012, approximately 217,000 square feet was for space located in the company's US portfolio, excluding colocation space. This includes approximately 90,000 square feet of Turn-Key Flex space leased at an average annual GAAP rental rate of $177.00 per square foot, approximately 16,000 square feet of Powered Base Building space leased at an average annual GAAP rental rate of $51.00 per square foot and nearly 111,000 square feet of non-technical space leased at an average annual GAAP rental rate of $19.00 per square foot.
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Natalie Dolce
Natalie Dolce, editor-in-chief of GlobeSt.com and GlobeSt. Real Estate Forum, is responsible for working with editorial staff, freelancers and senior management to help plan the overarching vision that encompasses GlobeSt.com, including short-term and long-term goals for the website, how content integrates through the company’s other product lines and the overall quality of content. Previously she served as national executive editor and editor of the West Coast region for GlobeSt.com and Real Estate Forum, and was responsible for coverage of news and information pertaining to that vital real estate region. Prior to moving out to the Southern California office, she was Northeast bureau chief, covering New York City for GlobeSt.com. Her background includes a stint at InStyle Magazine, and as managing editor with New York Press, an alternative weekly New York City paper. In her career, she has also covered a variety of beats for M magazine, Arthur Frommer's Budget Travel, FashionLedge.com, and Co-Ed magazine. Dolce has also freelanced for a number of publications, including MSNBC.com and Museums New York magazine.
