As the world’s largest data center real estate practice CBRE is able to provide the strategies, insights and end-to-end services needed to optimize your data center solution from inception through disposition.
With over 1,000 transactions spanning 348 cities and 104 global markets in the past 5 years alone, CBRE Data Center Solutions has the market power and expertise to make your data center project a success, regardless of size, scope or location.
Our services include:
- Colocation
- Cloud and Hybrid IT
- Managed Services
- Network Brokerage Services
- Acquisition and Disposition
- Data Centre and IT Consulting
- Market Research and Forecasting
- Contract and Lease Negotiation
Case Studies
Fortune 50 Global Technology Company
The Challenge
CBRE assisted the client with the rapid acquisition of colocation space for their global expansion strategy.
The Solution
CBRE provided Advisory & Transaction Services for this project with specific focuses on site selection, acquisition and contract negotiation. The CBRE team was able to deliver immediate value by identifying cost savings and gaps in contractual language for new and existing leases. With real time insights into market demand, CBRE was able to advise the client on exercising expansion rites – ensuring the client was able to meet customer demand for cloud.
Critical Global Rollout Components:
- Achieved $78M savings
- Consistent approach & process across global rollout
- Met client’s rapid acquisition timelines (some in 60 days)
- Competitive negotiation process with detailed term sheet
- Acquisition strategy guided by proprietary market intel
Fortune 100 Global Financial Company
The Challenge
CBRE assisted the client with the site selection and incentives negotiation process for their greenfield data center project.
The Solution
CBRE provided Advisory & Transaction Services as well as Location Incentives for this project with specific focuses on site selection, acquisition and incentives negotiation. The CBRE team utilized proprietary models to shortlist 366 initial MSA’s based upon the clients financial and operational criteria for the new site. CBRE acquired the site for the client once incentives were negotiated and finalized.
Components Addressed During Site Selection Process:
- Achieved $69M savings
- Leveraged geographies to achieve favorable incentives
- Evaluated quantitative & qualitative variables
- Negotiated substation relocation with power company
- Analyzed power, taxes, natural hazards, fiber, fuel mix, construction costs, free cooling, etc.
Global Financial Services Company
The Challenge
CBRE assisted the client with the sale master leaseback of their Southeastern enterprise data center.
The Solution
CBRE provided Advisory & Transaction Services and Consulting Services for this project with specific focuses on disposition, valuation, leasing options and contract negotiation. Extensive investment sales experience enabled CBRE to articulate the asset’s unique value to potential buyers, resulting in offers and ultimately a sale, that exceeded CBRE’s initial valuations.
Key Investment Sale Components:
- 7.45% CAP rate achieved
- Created value with excess/vacant data center space
- Sale strategy minimized impairments and maximized value
- Secured favorable contract terms for master leaseback
- Leveraged CBRE network to attract high credit buyers
U.S. National Transportation Company
The Challenge
CBRE assisted the client with the disposition of a data center 100% leased by an affiliate of theirs.
The Solution
CBRE provided Advisory & Transaction Services for this project with specific focuses on disposition, valuation and contract negotiation. By leveraging capital markets relationships and the data center’s occupancy, CBRE was able to attract qualified buyers for the asset. Through a competitive bid process a sale price that was 103% of initial projections was achieved.
Key Investment Sale Components:
- 103% projected sale price
- Promoted occupancy to entice buyers & drive value
- Renewed & extended lease to maximize sale proceeds
- Completed marketing, bid & sale process in allotted time
- Helped select financially & operationally qualified buyer
Fortune 100 Global Financial Company
The Challenge
CBRE helped the client evaluate financial structures and site selection for their data center consolidation project.
The Solution
CBRE provided Advisory & Transaction Services as well as Location Incentives for this project with specific focuses on site selection, acquisition and incentives negotiation. After analyzing financial structures, CBRE and the client agreed a build-to-suit (BTS) would accomplish the quantitative and qualitative goals of their project. CBRE ran a competitive process to select providers and geographies, leveraging the requirement to create cost and tax savings for the client.
Build-To-Suit Transaction Accomplishments:
- Achieved $179M savings
- Adhered to latency & uptime restrictions while cutting cost
- Prevented $450M of unnecessary CapEx by the client
- Developed a flexible & scalable occupancy structure
- Aligned operational & financial goals with BTS provider
Publications and Press
North America Data Center Trends H2 2018
Information Technology and Data Centre Decisions for the Future
