Big data economy drives commercial real estate changes

Big data economy drives commercial real estate changes

| Mar 9, 2017 | Real Estate Law |

Large companies in Ohio and throughout the country are experiencing an expanding demand for data centers. Vast amounts of data generated by 34 billion connected devices drive increasing portions of the modern economy. From a smart coffee pot ordering beans from Amazon to self-driving cars navigating traffic, the demand for data processing and storage has exploded.

A study released by Cisco predicted that over the next three years 83 percent of data will be managed through cloud computing. By 2019, servers will be processing over 500 zettabytes of data. This number represents a five fold increase over data volume in 2014.

This level of demand creates the need for more data centers. A managing partner at Skybox said that Fortune 500 companies and cloud companies will base decisions on where to build data centers according to the demands of the data economy. The vice president of Hillwood, a data center builder, added that companies want to position their data centers close to population centers and near their headquarters. A connected economy could also shift employment patterns by enabling more telecommuting, which could impact the size and design of office buildings.

Any commercial real estate venture should involve an analysis of the location’s prospects for future growth. The services of an attorney might enable a developer or investor to make informed decisions when selecting locations and putting together deals. An attorney could research zoning regulations and property tax rates to determine the viability of building commercial properties like warehouses or shopping centers. Once the decision is made to go forward, an attorney could assist in the preparation of the requisite documentation.