While a declining real estate market is generally considered as bad news, it may not be so for MSPs who are eyeing at expansion projects. SunGard Availability Services is currently getting a managed hosting data center ready for a May 2010 opening in Sacramento, California.
SunGard is a company which delivers managed services and collocation among other solutions. It is going to use the new facility to pursue business in the Bay Area. Sacramento is one of the areas in the country that has been really affected by the economic recession. However, the decline in the value of real estate in this area as well as the increase in commercial vacancies has opened opportunities for companies who are looking to expand into this region.
The lower real estate costs provided significant support for SunGard Availability Services. The said company has tried to avoid putting up a new data center because of available real estate. This was a logical move from the financial perspective, says Rahul Bakshi, VP for Managed Services Strategy & Solution Design. Bakshi also noted that the data center is going to possess proper quality levels. It will also have sufficient funding in order to accommodate upgrades.
According to the Sacramento Business Review, industrial real estate vacancies have gone beyond the 12 percent rate in 2009. The average asking lease rates have fallen to the levels recorded in early 2006. The data center of SunGard Availability Services is in Rancho Cordova, Sacramento County – an area which experienced one of the biggest recorded drops in occupancy.

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