Everybody Likes to Make Money Immediately, But Are Sale-Leasebacks Overblown? Local Insiders Talk Market Dynamics at CAPRE’s Atlanta Data Center Summit
ATLANTA, GA – The first panel at CAPRE’s Fourth Annual Greater Atlanta Data Center & Cloud Infrastructure Summit on August 15 was a lively roundtable discussion titled State of the Greater Atlanta Data Center Market: Analysis of Demand-Supply and Emergence of New Debt and Equity Capital Sources featuring five high-profile industry leaders offering first-rate analysis about the lay of the land in Atlanta. As the conversation neared its conclusion, the focus turned to that of the most promising opportunities for new entrants into the data center market – sale-leasebacks. After some confident commentary by panelist Jake Ring, CEO of GIGA Data Centers, Jason Chartrand, Executive Vice President for T5 Data Centers offered some sound, and balanced, perspective, seeking to temper expectations a bit. “The Microsoft and the big clouds, they are coming. They will be here soon,” he shared, concurring with earlier sentiment from his co-panelists. “And the sale-leaseback market is a great market. My concern with the sale-leaseback market, however, is that it’s so frothy. And you’ve got new money entering the space.” “Yes, [the investors] are becoming more well-educated, but it’s not established like the group that’s up here on this panel,” Chartrand continued. “These guys know how to build, or when to not build, how to turn things around, market it and lease up. But there are others here that jump in, buy a building, and totally forget that a UPS will need to be replaced next…
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