Cushman & Wakefield Insiders Discuss the State of Seattle Data Center Market

SEATTLE, WA – CapRE’s Fourth Annual Greater Seattle & Pacific Northwest Data Center Summit was a full day of first-class data center analysis. One of the central panels of the day, “Connectivity Innovations in the Pacific Northwest: Exploring the Growth of Sub-Sea Cables and Fiber Improvements” kicked off with some remarks by a pair of industry leaders from Cushman & Wakefield, which situated the local connectivity discussion within the broader national conversation. “From a real estate perspective, I’m going to present some basic statistics about the Pacific Northwest and Seattle market,” offered Moderator Gene Williams, Senior Director & Data Center Valuation Practice Group Leader. “The inventory of space, which is the chart you’re looking at, is growing at about 3%. This is multi-tenant whole space. it does not include enterprise or specific colocation builds. And just from that perspective, the Seattle market has just moved over a million square feet. It’s a slow-growth market and it’s kind of expected to stay that way for awhile.” “But as you can see, in 2016, 2017 and 2018, new construction or new deliveries to the market have been pretty significant,” he continued, referring to the slide below. “Utilization is up, around 70%, in spite of that construction because in the lighter color, you can see that the take-up or the absorption of that space has been pretty strong.” “As with a lot of West coast markets, Seattle pricing has been pretty stable,” offered…