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CoreSite (COR) Inaugurates SV7 Data Center in Santa Clara

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CoreSite Realty Corporation (COR - Free Report) announced the opening of its 230,000 square-foot SV7 data center in Santa Clara. The move reflects the company’s expansion strategy to leverage on the robust demand for multi-tenant data center space in the Silicon Valley market.

SV7 is the fifth building on CoreSite’s Santa Clara campus. It is, in fact, the largest among the five buildings in this 619,000-square foot Santa Clara campus. Presently, 62% of the 230,000 net rentable square feet of capacity is leased. SV7 offers a scalable, enterprise-class colocation and interconnection solution. It is in vicinity to the core of the high-tech Silicon Valley market.

It is also the largest among CoreSite’s seven-building, 780,000-square foot Bay Area portfolio. Around 200 customers connect for conducting business in CoreSite’s Silicon Valley data centers. These customers range from several domains – including enterprises, international and national carriers, social media companies to cloud-computing providers, media and entertainment firms.

Notably, with growth in cloud computing, Internet of Things and big data, and an increasing number of companies opting for third-party IT infrastructure; data center REITs are experiencing a boom market. They have pulled in capital and also scored well on the return book, producing total returns of 25.39% in the first nine months of 2016.

CoreSite delivers secure, reliable, high-performance, enterprise-class data centers and interconnection solutions across eight strategic North American markets. The company stands well to capitalize on this trend.

CoreSite currently has a Zacks Rank #2 (Buy).

Moreover, investors interested in the REIT industry can also consider stocks like Arbor Realty Trust Inc. (ABR - Free Report) , Crown Castle International Corp. (CCI - Free Report) and InfraREIT, Inc. . All of them have a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Arbor Realty Trust has exceeded estimates in three out of the trailing four quarters with an average surprise of 32.33% while Crown Castle has witnessed an upward revision of 2 cents, in its 2016 estimate, to $4.45. On the other hand, InfraREIT has a long-term expected growth rate of 10% against the industry average of 5.8%.

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