WEEHAWKEN, NJ-Signaling that demand for data center remains strong, Savvis Inc. has inked a deal to expand its space here by 209,000 square feet. The transaction, which consists of one direct lease and two subleases, was arranged on behalf of Savvis by CresaPartners.

Savvis is expanding its current flagship facility here into an adjoining building at 1919 Park Ave. Initial plans call for 35,000 square feet of raised-floor space expected to be completed by the second quarter of 2010, with a phased expansion for an additional 70,000 square feet. The buildings will connect directly via fiber optics.

Marcus Rayner, managing principal of CresaPartners in New York City, says in a statement, that Cresa helped “leverage favorable market conditions” to lock Savvis into a long-term lease. The landlord, Hartz Mountain Industries, represented itself in negotiations.

“The demand in the marketplace for financial IT infrastructure services continues to grow as companies outsource to trusted providers,” says Bill Fathers, Savvis senior vice president and managing director, US, in a statement. “Now, with two state-of-the-art facilities, we have established a financial data center complex that should make Savvis the destination of choice for financial service companies.” He said the move enables Savvis, a global leader in outsourced Internet infrastructure services based in Town & Country, MO, to expand current offerings and attract new customers.

Colton Brown, managing director for FirstService Williams in Parsippany, is familiar with the data center market in Northern New Jersey. He tells GlobeSt.com that the deal demonstrates the continued demand for data center space in New Jersey. “There is strong growth in the managed services sector,” he says, “and Savvis, an existing player, is experiencing growth.” Opportunities such as the one Savvis is undertaking here are “shrinking,” he says.

Brown says Savvis is making a wise move by expanding into building that already has the infrastructure in place. The previous tenant of the building, Citibank, will remain on one full floor. Rents for data center space are in the neighborhood of the high $20s, triple net, per square foot, Brown says.

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