CBRE Strengthens Data Center Real Estate Services

Total solution provider - from data center real estate strategy development to transactions, and operations support

CBRE (Japan Headquarters: Marunouchi, Chiyoda-ku, Tokyo) has established a new business arm to strengthen its data center real estate services.

With data transaction volume expected to double in the next two years and a further expansion of cloud services, the demand for data centers is only set to increase. Concurrently there are political changes that are affecting the industry. As part of the government's digital social infrastructure policy, there are efforts to decentralize data centers from large cities. Furthermore, the "Green Growth Strategy Through Achieving Carbon Neutrality in 2050" calls for all new data centers to be 30% energy efficient by 2030 and to convert a portion of the electricity used to renewable energy.

CBRE will leverage its domestic and overseas network, and highly specialized corporate functions to help clients – from owners, to investors, financial institutions, cloud data center companies, and data center users - navigate this complex and changing market. The new business arm, CBRE Data Center Solutions, will provide the following services:

• Advisory - Real estate strategy development
• Transaction - Purchase, sale, and lease brokerage for data center site acquisitions
• Appraisal – Valuation of existing data centers and preparation of consulting reports for new data centers
• Project Management – Management of data center construction projects
• Facility/Property Management - Management of data center operations

Hirokazu Ono, Senior Consultant, CBRE Data Center Solutions, said, "The data center industry is entering a phase of further expansion as the digital society continues to grow. Globally, telecommunication carriers and IT service companies have been actively investing in this sector. With the pandemic, video distribution and online retail has grown, further increasing the importance of data centers as social infrastructure. As a result, data centers are becoming an attractive asset for real estate investment. The data center market in Japan is expected to grow further in the future. We already see foreign data center operators entering the market one after another, and the development of domestic data centers is also rapid. Separately, there is a need for a strategic, all-round approach to data center development to respond to the government's initiative to promote decentralization and carbon neutrality. By combining CBRE’s experience in advisory, consulting, and management of logistics properties (warehouses, factories, and data centers), extensive network, and unrivaled platform, we will provide value-add services to help our clients realize their business strategies."

Visual outline of CBRE's comprehensive data center real estate services

 

For inquiries regarding CBRE's Data Center Solutions services
Hirokazu Ono ([email protected])
Senior Consultant
Data Center Solutions, Advisory & Transaction Services, CBRE K.K.

Hirokazu Ono Biography
Graduated from the Department of Mechanical and Information Engineering, Faculty of Science and Technology, Meiji University
In 2008, Hirokazu joined IBM Japan where he led a data center relocation project for a major non-life insurance company in the GBS Division. After that, he led a system integration project in the retail division of Citibank, and then worked in the wholesale division of SMBC Trust Bank, where he was in charge of real estate brokerage for foreign and domestic funds, listed and private REITs, and foreign general business corporations. He has experience in overseas real estate business in Hawaii, U.S. He has been in his current position since August 2021.

About CBRE Data Center Solutions
CBRE Data Solutions provides integrated support to businesses and investors in the area of data center real estate, from investment and development strategy, land and building acquisition, to operation, management, and sale. In the planning/transaction phase, we provide investment strategy support and consulting services, and handle real estate transactions (buying and selling of land and buildings, rent brokerage). In the development phase, we support various management operations such as vendor management, schedule management, quality control, and cost management. In the operation phase, we carry out facility management services such as repair planning, server room construction, and air conditioning/electricity maintenance.

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