Market Review
in Quarter 1. We are now beginning to may reach 100,000 sq m. m (39%) was in the technology sector.
see the buildout of space in the There was no corporate take-up in the
Amsterdam market. MARKET FOCUS London market in Quarter 1.
London
FIRST QUARTER 2008 This has been the slowest quarter for Frankfurt
FORECAST take-up in London since the The Frankfurt market continued the
Given the wider economic climate, we emergence of the corporate market in impressive performance seen in the
expected to see a slow start to 2008, 2004. London has been significantly second half of last year with the
which was demonstrated notably in affected by the current financial highest take-up of all Tier 1 data
London, where there was very little climate due to the large number of centre markets this quarter. Take-up
activity. financial services companies in the for Quarter 1 was 11,180 sq m which
London market. Although Quarter 1 represents 60% of total take-up
IT budgets have tightened amongst take-up has been low, we are aware across the Tier 1 markets. Take-up
the financial services community and of a number of large deals that will this quarter was the third highest
a number of planned projects were come to fruition in 2008 and while we recorded outside of the London
delayed for later in the year. will not see the same levels of take-up market. All of this quarter’s take-up
Encouragingly take-up continued to as last year (2007 was a record- was apportioned in the CNH market of
grow in Frankfurt and Paris, which is breaking year), we do expect levels to which, 5,890 sq m (53%) was to
indicative of the general increasing exceed those of 2005 and 2006. corporates, 5,060 sq m (45%) to
need for IT Real Estate and technology and 230 sq m (2%) was in
processing power. Of the 1,190 sq m of take-up this retail transactions.
quarter 730 sq m (61%) was in the
We expect the outlook in London to CNH market and 460 sq m (39%) was Total availability in Quarter 1 stood at
improve during the course of the year, in the threat market. Take-up this 41,010 sq m of which 22,520 sq m
and as such, whilst take-up is unlikely quarter was apportioned across the (55%) was fully-fitted space, 9,280 sq
to reach the levels of 2007, we feel sectors as follows: 730 sq m (61%) m (23%) was shell & core space and
that total market take-up for 2008 was in retail transactions and 460 sq 9,210 sq m (22%) was central
services space. Frankfurt remains
slightly oversupplied, however, we
expect the continued increase in take-
up being witnessed in the market to
consume the legacy levels of fully-
fitted stock.
Amsterdam
Take-up for Quarter 1 was 460 sq m.
This was all apportioned to the CNH
market and made up entirely of retail
transactions. Overall availability stood
at 10,280 sq m which represents a
slight drop on the last quarter of 450
sq m (4%). Availability was made up
as follows: 7,930 sq m (77%) was
fully-fitted space and 2,350 sq m
(23%) was central services space. The
overall vacancy rate in Amsterdam
now stands at 19.56%; as seen first in
London and then in Paris, when the
tier 1 vacancy rate drops below 20%
we expect to see stock being built
out. We are aware of three new data
Graph 4: Fully-fitted CNH stock available per tier 1 market centres due to open by the summer.
30 | DATA CENTRE SOLUTIONS |
www.datacentresols.com September 2008
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