Market Review
127,500 sq m (22%) was shell & core
space. Total stock was apportioned
across the five Tier 1 cities as follows:
239,210 sq m (42%) in London,
166,160 sq m (29%) in Frankfurt,
81,460 sq m (14%) in Paris, 52,560 sq
m (9%) in Amsterdam and 34,280 sq
m (6%) in Madrid. Compared with the
same quarter of last year, total stock
has increased by 50,870 sq m (10%).
We expect to see supply to continue
to grow, notably in Amsterdam where
new stock will be introduced to the
market over the course of the year.
Market Take-up & Demand
Total market take-up for the European
tier 1 market in Quarter 1 was 18,620
sq m, a decrease of 64% on the
previous quarter. Compared with the
first quarter of 2007 take-up was
down by 4% (800 sq m). Take-up in
the first quarter of 2007 was 19,420 Graph 2: Total CNH Stock per tier 1 market
sq m which represented only 12% of
the total take-up figure for last year.
The majority of take-up has been in companies based in London. These 2007. The vacancy rate fell in four of
the CNH market, 18,160 sq m (98%); conditions have meant that IT the five tier 1 markets, the exception
the remaining 460 sq m (2%) was in departments have been slow to being London which rose very slightly
the threat market. procure as restraints are placed on (25.63% in Quarter 4 to 25.71% in
budgets. Quarter 1).
CNH take-up was apportioned as
follows: 11,180 sq m (61%) in Additionally during the quarter both Fully-fitted vacancy rates rose in
Frankfurt, 5,120 sq m (28%) in Paris, Digital Realty Trust and Sentrum London (6.21%) and Paris (9.52%) but
730 sq m (4%) in London, 670 sq m in secured planning permission on their fell in Amsterdam (19.95%), Frankfurt
Madrid (4%) and 460 sq m (3%) in new London buildings. With (21.80%) and Madrid (14.66%). The
Amsterdam. appropriate stock now available in overall fully-fitted vacancy rate rose
London and with reduced IT budgets from 12.12% in Quarter 4 to 12.57%
Take-up this quarter was fuelled by now focusing on opex solutions we
the Frankfurt market, which has feel we are likely to see more take-up
remained relatively unaffected by the in buildings such as these over the
credit crunch. Take-up in the Frankfurt course of the year.
market has been driven by corporate
& technology deals. CNH Availability
Overall availability dropped this
FIRST QUARTER 2008 quarter from 161,770 sq m to 150,780
The underlying demand drivers remain sq m. Of total availability 69,920 sq m
strong with an ever growing need for (46%) was shell & core stock, 49,360
IT Real Estate and processing power. sq m (33%) was fully-fitted stock and
The effect of the credit crunch has 31,500 sq m (21%) was central
been seen more in the London market services stock. CNH overall market
than any other. This is due to the large vacancy now stands at 26.28%, a Graph 3: Source of Quarter 1 total
number of financial services decrease from 28.31% in Quarter 4 take-up
September 2008
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