NorCal Hyperscale Investment Roundtable | Sale-Leasebacks are the Opportunity du Jour

SAN FRANCISCO, CA — The closing panel of CAPRE’s recent Northern California Digital Infrastructure Summit concluded the daylong panel with a look at a perennially important facet of the data center industry – the hyperscalers. “The Growth of Hyperscale Data Centers: Analysis of the Impact of Record-Setting Investment on the Industry” was moderated by Kevin Imboden, Director of Research for the Data Center Group at Cushman & Wakefield, and he spent a significant amount of time asking the panel to talk about one of the hottest opportunities in the digital infrastructure investment space – sale-leasebacks. Imboden first looked to panelist Andrew Gold, Principal at Gold Mindshare Consulting, for insight. “Well I can talk about what I’ve seen in the marketplace in terms of real estate opportunities. A lot of sale leasebacks and partial sale leaseback opportunities have been coming to the market. In and of itself, that represents an opportunity to get some stabilized commitment in place and the opportunity to bring additional tenants into the site, in order to get some more value out of your asset,” shared Gold. “It’s a value-add opportunity.” “Obviously there’s a little more risk there in terms of the price that you end up paying for it, the potential demand in the marketplace and what you’re able to get, so there’s a whole bunch of variables you have to take into account when you’re looking at that type of a transaction,” he continued. “But…