How to Find Data Center Tenants

Joshua Feinberg discusses the complexities of finding data center tenants, emphasizing the need to balance real estate focus with technology and facilities.

He highlights the importance of understanding the ideal client profile, including company size and industry, and the necessity of playing the long game by engaging potential tenants early in their decision-making process.

Feinberg stresses that 90-95% of potential clients are not currently in the market but may become so, necessitating proactive education and relationship-building.

He advises building a personal and company brand to position oneself as a trusted advisor in digital infrastructure, rather than just a real estate provider.

This video is excerpted from the podcast Ep. #49 Joshua Feinberg, CEO of DCSMI | Data Center Go-to-Market Podcast.

Action Items

Define the ideal client or tenant profile, including geographic location, company size, and industry.
Identify a target list of potential tenants based on the defined profile.
Understand the priorities, goals, and pain points of the key decision-makers at the target companies.
Develop a strategy to engage with potential tenants early in their decision-making process and position the company as a trusted advisor.

Outline

Finding Data Center Tenants: Real Estate vs. Technology Focus

Joshua Feinberg discusses balancing real estate and technology focus when finding data center tenants.
He emphasizes that the data center industry is heavily intertwined with real estate and investment trusts.
Joshua points out that a real estate-focused approach may not fully leverage the company's IT and facilities capabilities.
He suggests considering alternative terms like clients, partners, or tenants to reflect the company's approach better.

The Role of Timing and Market Awareness

Joshua explains the challenge of identifying potential clients who are not currently in the market but may be in the future.
He highlights the importance of recognizing when colocation agreements are up for renewal to capitalize on timing.
Joshua notes that 90-95% of potential clients are not actively looking but could still be valuable prospects.
He stresses the need to play the long game and focus on understanding client profiles and geographic locations.

Defining Ideal Client Profiles and Geographic Targeting

Joshua emphasizes the need to define clear ideal client profiles, including company size and location.
He discusses the importance of understanding whether the company does better with large, mid-sized, or small tenants.
Joshua advises considering industry-specific attributes and regulatory environments when targeting tenants.
He highlights the need to identify key stakeholders and their roles within the decision-making process.

Building Relationships and Early Engagement

Joshua explains the importance of building relationships with potential tenants early in their decision-making process.
He warns against waiting until prospects are nearly ready to decide, as competitors may have already built trust.
Joshua advises getting in early to educate and build trust with potential tenants.
He emphasizes the need to be seen as more than just a real estate provider but as a trusted advisor in digital infrastructure.

Geographic and Industry-Specific Targeting

Joshua discusses the importance of defining geographic targets, whether local, national, or global.
He advises considering the size of the tenant company and the specific industries that are a good fit.
Joshua highlights the need to build awareness and educate potential tenants to see the company as a go-to advisor.
He notes that larger brands may have different strategies than smaller, lesser-known ones.

Building Personal and Company Brand

Joshua emphasizes the importance of building personal and team brands for real estate professionals and sales teams.
He advises educating potential tenants and building trust to attract them to the company.
Joshua highlights the need for real estate professionals to be seen as experts in digital infrastructure.
He concludes that taking the long-game approach and understanding changing decision-making processes is crucial for success.

Resources

Watch the full podcast Ep. #49 Joshua Feinberg, CEO of DCSMI | Data Center Go-to-Market Podcast

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