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HERNDON, VA- BAE Systems has leased 156,667 square feet in President’s Park Three, an office building owned by Liberty Property Trust. The recent transaction is partly a renewal of 142,646 square feet that BAE already maintained in the property, located at 2525 Network Place. It also inked an additional 14,021 square feet in order to build a data center. Gene Sachs, managing principal at CresaPartners represented BAE; Mike Jones represented Liberty Property Trust. Liberty Property Trust did not return a call to GlobeSt.com in time for publication.

Asking rates for the building were in the mid to low 30s per square foot, Sachs tells GlobeSt.com. BAE renewed its lease three years early for a five-year term, securing for itself a very favorable rate, according to Sachs. The lease for the existing space will begin November 2011; the lease for the expanded space starts later this year.

BAE’s expansion represents one of the few bright spots for the CRE industry–data centers. New Jersey’s office market exceeded expectations in Q4 in part due to such investments, to cite just one example. “Most data centers require less than 10,000 square feet of space, and most data center capacity is utilized by small users,” Bowman writes. Such space requirements, as BAE illustrated, tend to be small–around 10,000 square feet. However requirements are growing at a faster velocity due to Moore’s Law–the principle that data center bandwidth doubles every 18 months, according to a white paper prepared by Ronald H. Bowman, EVP of Tishman Technologies Corp., a Tishman Corp. division that specializes in data centers.

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