Carry on Wayward Leasing Executive: Chicago Insiders Discuss Evolution of Lease Terms
CHICAGO, IL -- If anything’s certain in the data center industry, it’s uncertainty. This industry is changing in many aspects, and so of course the way that deals are struck and cemented follow suit. This was the crux of one of the signature panels at CapRE’s recent Greater Chicago Data Center Summit, Carry on Wayward Leasing Executive: Best Practices for Brokers, Marketers and Attorneys as Deals Grow in Size and Complexities. In this CapRE Insider Report, we dive right into this discussion. “Lets go ahead and get into it!” began Moderator Jake Ring, Co-Founder & CEO of GIGA Data Centers, looking to his trusted panelists. “From our perspective, there’s been an evolution over the last five years in deal size. Gentlemen, what have you seen in that evolution? How have lease size, terms, and complexities changed in the last five years?” Matt Gleason, General Manager at CoreSite kicked off the offerings. “I think generally, leases have gotten shorter. What used to be 5 year terms are now 3 year terms, or 2 year terms,” he replied. “Flexibility matters. Optionality matters. And on the lease term, we see a lot of requests for renewal options on the back end. Of shorter leases than we have had traditionally in the past. Some of that is just tenants getting a little bit smarter about what they’re buying and how they’re buying. Some of that is the cloud. They don’t know how they’re doing…
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