Report | Adaptive Spaces
H1 2020 Global Data Center Capital Markets Report
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As the COVID-19 outbreak has swept the globe, its impact upon commercial real estate sectors has been both significant and varied. One asset class seeing a resurgence of interest from investors is Data Centers. The latest report from CBRE’s Global Data Center Capital Markets contains key insights including the following:
- Data centers are the highest performing REIT sector in the first half of the year, up 17.6% as of June 30, 2020.
- As a result of the strong performance in the public markets, investor interest has been heightened.
- The sector has benefitted from the tailwinds of the COVID-19 work-from-home-environment, which has expedited cloud outsourcing and accelerated the need for data storage.
- Other demand drivers include the emergence of new technologies such as 5G, artificial intelligence, autonomous vehicles, the Internet of Things (IoT), and solid growth fundamentals.
- Drawn to steady cash flows and an investment grade tenant base, investors are attracted to core offerings.
- With limited opportunities of scale for direct investment and heightened investor interest, CBRE anticipates returns will continue to compress in the data center market globally.
- The first half of 2020 saw an increase in overall asset level investment volume in North America when compared to H1 2019.
Contact
Kristina Metzger
Senior Vice President
Paul Mortlock
Head of EMEA Data Centre Capital Markets
