Cathy Marcus 5.0 3 ideas

Data center demand continues to outstrip supply, driven by increasing technology use and AI training. While there are concentrations in certain markets, focus should be on low latency markets (like Virginia) that can support critical operations and have a longer revenue story, rather than markets only fit for AI training.

Office real estate in certain markets like New York and San Francisco is a good tactical play because leasing has picked up significantly and rents are going up, indicating a recovery from a previously bleak outlook.

Necessity retail, particularly grocery-anchored retail, is resilient because these services (grocery, pharmacy, haircuts) cannot be done online all the time. Online grocery deliveries are often fulfilled from the actual store, supporting the physical location.