Buildings
that house corporate servers and back-up facilities in remote
locations are vastly emerging as a gold rush property asset.
Ironically, whilst the property market is still rife with falling
property values, negative equity and repossessions, real estate
cash-rich millionaires or reallionaires have single out data storage
centres as one of the best performing property assets over the last
five years. Yes, there are lots of statistics to support this.
Evidently, the notion of a property crash is utter rubbish.
Nevertheless,
as traditional property sectors continue to become obsolete,
reallionaires have adopted certain strategies that will help them
continue to make millions in cash from real estate investing.
Investing in recession proof property sectors is one of many
strategies used by reallionaires to grow their wealth. To date, there
are around 20 real estate assets that are proving to be recession and
providing their owners with excellent equity growth, double digit
rental yield and superb returns on investment. Sadly, residential,
retail, hotel and office properties does not make it into the G20
league.
The
reason why data centres are proving to recession proof are as
follows:
Firstly,
the world has rapidly grown in demand for IT services (especially for
the internet, coupled with a surging demand in emerging economies).
Yet there is still considerable room for more IT functions within the
public, private and social-enterprise sectors. The biggest driver of
growth is the vast emerging demand for video content from the
entertainment industry via the internet.
Secondly,
the number of internet users has jumped in the last five years from
1.043 billion users (16% of the world’s population, June 2006) to
2.11 billion (30%, June 2011) (source: Internet World Stats).
Thirdly,
according to the International Telecommunications Union the number of
smart-phones is projected to rise from 500 million in 2011 to 2
billion by 2015. More and more people will be access rich content via
the internet stored on cloud servers.
As
reallionaires find new ways of developing data storage centres more
cost-effectivey, the cost of content storage will drop and the volume
of tenants and occupancy rates will double, thus giving owners of
data centres real estate steady income streams for decades to come.
