Investment Forum | New York // Panel: Stabilized but not stable? Navigating risks in data center assets
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Speakers

Vice President - Senior Analyst, Structured Finance Group, Moody's Ratings

Richard Choe
Vice President, Equity Research, J.P. Morgan
Stabilized data center assets are often seen as the “safe bet” in the investment landscape, offering predictable cash flows and lower risk profiles. However, beneath the surface of stability lie critical challenges such as lease expirations, renewal risks, and the need for ongoing capital expenditures to remain competitive. As long-term leases approach maturity, investors face increasing uncertainty around tenant retention, re-leasing in non-prime locations, and the costs of modernization. How can investors navigate these challenges to maintain and enhance asset value?
Attendees will gain insights into:
- Lease expiration risks: How can investors assess and manage the risks related to lease expirations, tenant retention, and re-leasing in non-prime locations?
- Managing modernization costs: How can operators balance modernization costs with returns to keep facilities competitive in a fast-evolving market?
- Long-term asset value strategies: What proactive measures can investors take to ensure stabilized assets remain attractive and profitable as leases mature and market conditions evolve?