Recent activity on the economic news front has been eventful to say the least. With inflation remaining persistent, the RBA leaving interest rates on hold, and the stock market at its most volatile since the onset of COVID-19, investors are left pondering their next move.
At the coal-face, high-street retailers are seeing a reduction in foot traffic this year with fewer customers in stores.
ABS retail figures back this up, showing while turnover figures are up 2.2% YoY, volumes are down -0.7% for the same period, confirming the general sentiment for consumers; things are costing more but shoppers have less in their baskets.
So what can we take away from this?
For retail property owners, perhaps now is the time to look at cashing out? Well-positioned, fully leased tenanted investments are achieving yields in the low 6%’s, with stronger covenants to national tenants achieving even sharper returns.
For investors wanting to enter the market, try looking for partially leased retail offerings where tenants may have recently vacated. This will come down to timing and in depth local market knowledge to find such opportunities.
Whether you’re looking to place funds into a commercial retail property, or wanting to take profits off the table, we help find the right solution for your portfolio.I welcome your call to discuss your unique requirements.
Benn Woods | 0408 689 651