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Data center provider Blue Hill Data Services has re-signed its lease at a property strategically located along Route 22 in Somerset County.

Cushman & Wakefield said April 5 it arranged the 7,642-square-foot renewal at 3434 Route 22 in Branchburg with Managing Director Sean Brady representing the tenant.

According to a Brady, the transaction keeps the property at 100% leased. “It was a pleasure to work with Blue Hill Data Services in securing a lease renewal with favorable terms in a tight industrial market,” he said.

According to a report from CBRE, the New York Tri-State region recorded a more than 70% increase in data center space leased in 2022 over 2021.

“Concerns over the economy and rising interest rates have caused more firms than ever before to turn to the cloud, and not incur the added investment of owning and maintaining server equipment,” Jonathan Meisel, senior vice president with CBRE’s New Jersey offices, said in an a statement released with the report earlier this month. “In the New Jersey market specifically, health care and law firms have transitioned to more of a cloud-based and co-location model for their data needs.”

But, the biggest driving force behind the Garden State’s record low 7.8% vacancy rate for data centers, according to William Hassan, senior vice president with CBRE’s New Jersey business, was demand from the financial services sector.

Blue Hill provides private cloud and fully managed 24/7 data center hosting solutions in addition to IT support services delivered from On-Shore, USA. Since 1994, the firm has supported government and commercial clients, helping to reduce their operating expenses, eliminate capital expenses, mitigate the risk of a retiring workforce, meet regulatory and audit requirements, and achieve 100% client success.

Situated on 6.53 acres, the industrial property at 3434 Route 22 is comprised of 42,653 square feet that is occupied by five tenants. In 2020, Cushman & Wakefield arranged its sale to a private entity for $6.4 million.

From its location along the highway, the facility offers direct access to Interstates 287 and 78 and more than 70 businesses within a 3-mile radius, Cushman & Wakefield said. According to Blue Hill’s website, the building features diverse power feeds; UPS/generator redundancy; environmental protection; A/C and fire systems; multiple carriers, including Verizon Business, Verizon Core, Crown Castle and others with alternate paths; and 24/365 physical security comprising digital recording and monitoring, infrared movement detectors, magnetic contact alarms and a guard.

Blue Hill has additional locations in Pearl River, N.Y., and Shelton, Conn.