How a Broker's Focus on Electrical Rooms Unlocks Edge Data Center Deals

Most commercial real estate brokers focus on ceiling height and loading docks during site visits, but Logan Freeman, founder of Kansas City-based Midwest CRE Advisors, prioritizes the electrical room. This approach has enabled his firm to close edge data center transactions in secondary Midwest markets while others are still learning the ropes. Freeman has developed a repeatable evaluation process for industrial buildings being considered for edge data center conversion, starting with external utility infrastructure like transformer pads and substations. He explains that a 2,000-amp service on a 40,000-square-foot building piques his interest, while a 400-amp panel prompts him to move on unless there's a clear utility upside story.

Inside, Freeman's first stop is the electrical room, where he examines switchgear, panel configuration, and load capacity, considering upgrade costs. He also emphasizes floor load as a critical factor: most industrial buildings are rated for 125 pounds per square foot, but edge data centers require 200 to 300 pounds per square foot. Remediation costs for structural upgrades can make a building unworkable. Clear height of 12 to 16 feet is sufficient, but column spacing is crucial for equipment layout. Cooling infrastructure is another key area; former telecom central offices with existing battery rooms, generator connections, and redundant cooling are particularly valuable, potentially saving years of fit-up work and millions in capital expenditure.

Freeman also checks fiber entry points, road access for equipment delivery, and roof integrity for prior water intrusion. A thorough walkthrough with specialists in electrical, structural, and mechanical systems takes about an hour, allowing him to assess whether a project is a two-million-dollar fit-up or a twenty-million-dollar gut renovation. He advises that developers should treat every completed deal as a dataset for future projects. The broader principle: ask not what the building is, but what it is connected to. For examples, visit their client success stories.