Originally posted to Data Center Frontier by Rich Miller.

The rise of the service provider and the decline of the enterprise data center are intersecting in the sale-leaseback, a real estate strategy that provides benefits for both parties.  Industry executives says 2018 is shaping up as a big year for sale-leaseback deals, due to the increased number of properties available and more service providers embracing the strategy as an attractive way to expand into new markets.

“There’s a lot of sale-leasebacks going on, and a lot of enterprise companies are trying to figure out their strategy,” said Jim Kerrigan, Managing Principal of North American Data Centers, a real estate advisory firm specializing in data centers. “I think we will see a lot of these large sale/leasebacks over the next 18 months.”

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