Commitments and Contingencies

3 Months Ended

Mar. 31, 2015

Commitments and Contingencies

Commitments and Contingencies

12. Commitments and Contingencies

Our properties require periodic investments of capital for general capital improvements and for tenant-related capital expenditures. We enter into various construction and equipment contracts with third parties for the development of our properties. In addition, we enter into contracts for company-wide improvements that are ancillary to revenue generation. At March 31, 2015, we had open commitments related to construction contracts of approximately $19.0 million.

Additionally, we have commitments related to telecommunications capacity used to connect data centers located within the same market or geographical area and power usage. At March 31, 2015, we had open commitments related to these contracts of approximately $11.4 million.

In April 2015, CoreSite executed a lease and began construction on a 100% pre-leased, 136,580 square-foot powered shell on land CoreSite owns on the company’s Santa Clara campus, which will be known as SV6. CoreSite has incurred $1.2 million of the estimated $27.0 million required to complete the project, and expects to deliver the build-to-suit to a strategic customer in the first half of 2016.

From time to time, we are party to a variety of legal proceedings arising in the ordinary course of business. We believe that, with respect to any such matter to which we currently are a party, the ultimate disposition of any such matter will not result in a material adverse effect on our business, financial condition, cash flows or results of operations.