The annualized rates for leases that commenced in the firstquarter of 2008 were $119.25 per sf for its turn-key datacenterspace, $52.42 per sf for "powered base building" space (datacenterspace in shell condition) and $19.31 for non-technical space. Inthe fourth quarter, the respective comparable numbers were $126.70per sf, $42.90 and $22.30. The respective comparable numbers forthe first quarter of 2007 were not immediately available.

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The annualized rates for leases that were signed in the firstquarter of 2008 were $100.05 per sf for turn-key data center space,$52.42 for its "powered base building" space and $25.93 for itson-technical space. The respective comparable fourth quarter rateswere $125 per sf, $40.65 per sf and $20.90 per sf. The respectivecomparable numbers for the first quarter of 2007 were notimmediately available.

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A company source tells GlobeSt.com that the drop in the rentalrate for signed datacenter leases was caused by one expansion dealwith an existing tenant. Without that deal, the source say theannualized rate for new leases in the first quarter of 2008 wouldhave been closer to $120 per sf.

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"It really depends on where we are signing leases that quarter,"the source says. "There is a lot of fluctuation on amarket-by-market basis."

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That is why the company chief executive Michael Foust says he isfocusing redevelopment efforts on its top 10 markets. Those marketsinclude New York Metro, Northern Virginia, Chicago, Dallas,Phoenix, San Francisco and Silicon Valley in the US, and London,Dublin and Paris in Europe.

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Digital Realty will release its financial results and occupancyfor the first quarter 2008 before the market opens on Thursday, May8.

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