Data centers have no readily apparent alternative use; repurposing a data center building in a remote location into residential or commercial space is economically unclear, creating high residual value risk for CMBS investors.

factualpending

Speaker

Jeffrey Sherman

Evidence Quote

repurposing buildings, what do you do with a data center that's in the middle of some place that people have never heard of, right? Does it turn into an apartment building? What do you do with it? Um and so what's the residual value is what you would say as a CMBS investor. And that has a big question mark.

Source

Jeffrey Sherman and Jason Draho: How Should I Be Positioned? | UBS On-AirDoubleLine Capital
Created: 8/12/2026, 10:36:49 PM

My Notes

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