451 Research: QTS set to enter supply constrained downtown Chicago MTDC market
THE 451 TAKE
QTS’ range of services – including wholesale space, retail colocation space, and cloud and managed services – differentiates the REIT from its Chicago wholesale competitors. But its foremost competitive advantage in the downtown market is its willingness to make significant capex investment in building out space speculatively. Nothing shortens the sales cycle like having wholesale datacenter supply available for immediate leasing, especially when QTS extends its datacenter footprint into a new geographic market. We expect that its new datacenter will see successful leasing activity because of demand for enterprise quality space in the constrained downtown market.