Data Center REITs. Investment/Development teams?

Based on the most helpful WSO content, here’s what you need to know about investment and development teams at data center REITs like Digital Realty and Equinix:

1. Culture:

   • Both Digital Realty and Equinix are known for their strong presence in the data center space, but their cultures can differ.
   • Digital Realty tends to have a more traditional REIT structure, with a focus on stabilized assets and development projects.
   • Equinix, on the other hand, operates more like a tech company, given its focus on interconnection services and global platform expansion. This can translate into a faster-paced, tech-driven culture compared to Digital Realty.

2. Compensation:

   • Compensation at these REITs is competitive, especially for investment and development teams.
   • Expect base salaries to align with industry standards for REITs, with bonuses tied to deal performance and overall company metrics.
   • While exact figures can vary, these roles often offer strong total compensation packages, especially for those involved in private funds or high-profile development projects.

3. Private Funds Activity:

   • Both Digital Realty and Equinix have private funds activity, which adds another layer of complexity and opportunity for their investment teams.
   • These funds often focus on joint ventures or co-investments in strategic markets, providing exposure to institutional-level deal-making.

4. Development Teams:

   • Development teams at these REITs are heavily involved in site selection, powered land acquisitions, and managing large-scale projects.
   • Given the capital-intensive nature of data centers, these teams work closely with investment teams to ensure projects align with broader strategic goals.

If you’re considering a role in these teams, it’s worth noting that the small team sizes often mean more responsibility and exposure to all aspects of deals, which can be a great learning opportunity. Cheers!

Sources: Q&A: REIT Acquisitions Associate, Real Estate Q&A, Who moved into RE from IB?, Q&A: I work for a data center operator and developer (Specialty REIT), Office Sector Next Shoe to Drop After Retail?