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In part three of a three-part video series titled “Trends driving data center real estate, part 3: Diversification strategies for private wealth advisers,” Bryan Marsh, CEO at Strategic Data Center Fund Manager, explains why data centers appeal to smart-money investors.
“Our investment thesis around data centers is to find well-located, well-built, occupied facilities with good credit tenants, very stable cash flows, long-term leases in place that really make up a core investment,” says Marsh.
He continues that they look for value-add properties where there is possibly some vacancy, there is a way to restructure or extend the lease, or a below-market lease in place, ways there can be some added growth to revenue and then the bottom line.
“We like secondary and tertiary markets because we see less competition there,” says Marsh. “We actually see higher rents in some of those markets, and there are a lot of facilities there that are available to purc