CoreSite Realty Corp Q2 2020 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Nathan Daniel Crossett - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : I just wanted to also ask on the SV7 backfill. Have you guys had customers come through recently to look at that specific space? I guess, I'm just trying to understand what the holdup is as to why there hasn't been any kind of traction? Is it -- do you have to really wait until the tenant moves out before you can show it or...

Question: Nathan Daniel Crossett - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. What about SV2? I think last quarter, there was some move out there. What's the latest on backfilling that space?

Question: Nathan Daniel Crossett - Joh. Berenberg, Gossler & Co. KG, Research Division - Analyst : Okay. Would you guys ever consider sacrificing your return threshold surprised you to fill some of these sooner rather than later or...

Question: Erik Peter Rasmussen - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : Just back to leasing, it seemed to take a little bit of a pause after a solid Q1. You didn't book any scale deals, but were there any deals that were pushed out? Or how should we think about then the balance of the year in terms of maybe regaining some momentum? And then I have a follow-up.

Question: Erik Peter Rasmussen - Stifel, Nicolaus & Company, Incorporated, Research Division - Analyst : Okay. Great. And then maybe just on the Silicon Valley. As a lot discussed on SV7, SV8, but what are your plans for SV9? Is that more of optionality at this point and the focus for the team is backfilling SV7 and then you have another 25% or so to fill on capacity in SV8, and it almost becomes a jigsaw puzzle in terms of how you want to fulfill that demand that you're seeing in the most efficient way. But how should we think about then SV9 in the context of all that?

Question: Nicholas Ralph Del Deo - MoffettNathanson LLC - Analyst : First, Jeff, to what degree, if any, did factors like lower T&E expense or lower power prices help the bottom line?

Question: Nicholas Ralph Del Deo - MoffettNathanson LLC - Analyst : Okay. That's great detail. And regarding the change in rents on renewal, you noted that was attributable to a couple of leases in Reston. I feel like that may have happened to you at some point a couple of quarters ago in that market, maybe I'm mistaken. But even a more general sense, with prices down in that market, should we expect that there are more larger leases there that are going to price down in the coming quarters or coming years?

Question: David Anthony Guarino - Green Street Advisors, LLC, Research Division - Analyst : A question for you on Northern Virginia. The industry data that we looked at suggests that there's been a strong first half of the year. And maybe even the supply demand pendulum has kind of swung back to not being so oversupplied. And I know you also noted that market is still seeing some aggressive pricing. So what do you guys look internally to determine when you're going to add new capacity in Northern Virginia?

Question: David Anthony Guarino - Green Street Advisors, LLC, Research Division - Analyst : That's helpful. And then maybe switching gears, obviously, in the public market, data center stocks have shown really strong performance year-to-date. But do you have any idea how that might translate into pricing in the private market for data centers? Have we seen any sort of cap rate compression in the sector? Or is it still too early to tell?