“This represents an important step in managing our real estate portfolio and provides greater operational flexibility, predictability and consistency for key data center assets.”
Equinix will renew existing leases with Digital Realty for five data center properties located in Chicago, Dallas, Los Angeles, Miami, and Washington, D.C. All five of the leases were negotiated at market rates and include 15-year initial terms from the current lease expirations, as well as two approximately 10-year renewal options at pre-negotiated rental rates.
“We have had a long-standing and productive relationship with Digital Realty and are pleased to have negotiated mutually beneficial lease renewal agreements over effectively a 35-year period on these five assets at rates in-line with our expectations,” said Howard Horowitz, senior vice president, Global Real Estate for Equinix. “This represents an important step in managing our real estate portfolio and provides greater operational flexibility, predictability, and consistency for key data center assets.”
“These early renewals represent a win-win for both companies, as they provide long-term operational certainty to a strategic customer, while simultaneously unlocking a portion of the embedded rent growth within our portfolio,” commented David Caron, senior vice president, Portfolio Management for Digital Realty. “Furthermore, the cash rental rate uplift also provides a real-time read on the health of current data center pricing.”