Scott O'Neill

They're the types of assets we tend to avoid at Rethink Investing.

We like buying properties that have somewhat of a floor component, bit of a unique factor because that uniqueness will generate, I think, longer term capital growth because it will stand out to not only you as an investor but tenants in time.

An example, like an office space, if you had a little freestanding office space in a good suburb of whatever capital city, you're probably going to find that's quite a high demand product, even with COVID because people don't want to be in the capital city up the elevator shaft in a 20 stories up anymore.

You know, the world has changed.

So...

It's about identifying the opportunities and the capital growth will come if you invest well.

The proof's in the pudding.

We've seen, as I said before, like industrials probably led the way with capital growth.

That's sitting at somewhere between 10 and 15% between each capital cities per annum the last three years.

Retail's not far behind that as well.

There's obviously weaker aspects of retail, but essential service retail's going very strong as well.

I like to sort of invest relatively counter-cyclical just to get a good buy day one.

And I feel like retail is a pretty good time to start looking at it again.

It's still got a bit of a stigma attached to it because of COVID.

There's some areas I still would avoid like the plague, but there's other types of like suburban retail shopping centers, things like that.

They're performing well.

And I think that trend is just going to continue because they're priced pretty decently at the moment compared to industrial, which is white hot at the moment.

Everyone wants industrial.

It became almost like the gold of commercial property once COVID hit because all businesses moved online.

There's obviously supply strain constraints so people are storing more, manufacturing more in Australia.