Lincoln Property Company, a prominent real estate firm, has recently acquired a data center facility in Alpharetta, Georgia. This acquisition marks a strategic move in the growing data center market, offering significant opportunities for further expansion and leasing.
Underutilized Site with Immediate Leasing Opportunities
The newly acquired data center boasts 7.2MW of capacity available for lease immediately, addressing the urgent demand for data center space in the region. This site also has plans for a future expansion of an additional 30MW, which will significantly increase its leasing potential. With a shortage of available data center inventory in Georgia, this expansion will play a vital role in fulfilling the region’s increasing demand for more data center capacity.
Strategy Behind the Acquisition: Rapid Market Response
According to Ryan Sullivan, Executive Vice President of Lincoln’s Data Center Group, the acquisition was driven by the firm’s desire to secure an asset that provides immediate cash flow while also offering substantial expansion potential. This aligns with Lincoln’s strategy to cater to the growing backlog of demand for data center services in Georgia. Sullivan emphasized the firm’s ongoing focus on acquiring underutilized assets and converting them into high-demand, multi-tenant facilities.
Lincoln’s Data Center Portfolio and Future Plans
This acquisition adds to Lincoln Property Company’s growing portfolio in the Atlanta area. The firm already owns and operates three data centers across the region, with over 20MW recently leased to clients. Lincoln’s strategy includes not only acquiring underutilized assets but also focusing on larger development opportunities and industrial conversions in key markets such as Dallas, Phoenix, Washington DC, and Chicago.
Previous Acquisition of Blackberry Facility
In 2022, Lincoln expanded its Atlanta footprint by acquiring a former Blackberry facility. The conversion of enterprise data centers into higher-density, multi-tenant spaces has been a successful strategy for Lincoln in several major markets, helping the firm establish a stronger presence in the competitive data center industry.
CBRE Facilitates the Transaction
The acquisition was brokered by CBRE’s Data Center Capital Markets team, who exclusively represented the seller in the transaction. This collaboration underscores the continued demand for data center assets in high-demand regions like Georgia.
Frequently Asked Questions
What is the immediate capacity available at the newly acquired Alpharetta data center?
The Alpharetta data center has 7.2MW available for lease immediately. Additionally, the facility has plans for a 30MW expansion to meet growing market demand.
How does Lincoln Property Company plan to expand its data center portfolio?
Lincoln Property Company plans to acquire more underutilized data center assets and explore larger development opportunities. The firm focuses on converting enterprise data centers into high-density, multi-tenant facilities across several major markets.
Why is there such a high demand for data center capacity in Georgia?
Georgia’s established data center market has extremely limited inventory, coupled with growing demand from enterprises and cloud service providers seeking more capacity. This makes the region an attractive destination for data center investment.
What role did CBRE play in this acquisition?
CBRE’s Data Center Capital Markets team exclusively represented the seller in the transaction, facilitating the acquisition process for Lincoln Property Company.
What are the benefits of converting underutilized data centers into multi-tenant spaces?
Converting underutilized data centers allows for better utilization of existing infrastructure, offering customers more flexible leasing options in regions with limited supply. This approach also helps meet market demand without the need for new builds.
