Shell Building Property as Data Centers: When to Just Walk Away

Many firms have gone looking for core/shell property with the intent of renovating these structures for use as a data center.  These projects are very capital intensive, and in many cases the benefits of having the existing structure are almost nil when viewed in the context of the broader project plan and budget.  However, many firms continue the search through available property in hopes of finding a diamond in the rough that can be resurrected as a great data center.

Through our experience in helping clients with these searches, one has to sort through dozens of duds before finding a real candidate data center property.¬† While many problems can be overcome with freely flowing capital, there is a short list of show stoppers that in spite of all else, there is no way to make the property fit the intended purpose.¬† By properly arming your commercial realtor, one can save a lot of time by weeding out the candidate properties according to the most common road blocks.¬† We’ll discuss those here.