Commercial retail property has took a huge hit during the Coronavirus pandemic due to tough lockdowns and working from home causing major distress for retailers. During this time, investors purchased $5 billion worth of retail assets. Investor’s focus during this time was to find retail assets that were high yielding and generating income. Assets that met these requirement were usually tenanted by supermarkets and convenience stores. These types of retail assets are able to withstand difficult periods like the pandemic.
Many retail landlords are looking to convert the existing business model to something sustainable long term. This focus has led to a different mix of retail clients moving away from department stores and fashion outlets and more towards food, health and entertainment.
Many of the investors flooding the retail assets are seeing Australia as a safe place to invest their money because they perceive the country to be economically stable, a low rate of defaults and a safe environment compared to other places. Australia’s low Covid numbers has meant that the country will continue to experience high levels of domestic spending.
It is expected that over the next couple of years, cafes and restaurants will be the best performers as consumers are expected to dine out more than ever.
Stores like Glassons are thriving during lockdown having the ability to sell online. Use a Glassons discount code to save on your purchase.
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