Scott O'Neill

Like, you know, are they going to retire?

Are they looking to expand?

Are they employing more people and need a bigger space?

Like these are the questions you can ask in the due diligence and you get a lot of comfort around all the answers.

Or not, you might realize the tenant's about to leave and that's where you don't proceed with a deal if that would make or break it for you.

Yeah, so look, our niche is to operate under the institutional investors.

So everyone's got a super fund and you probably own parts of commercial property already and don't even know it.

Like if you've got shares of A&P, they own shopping centers and towers and stuff like that.

You probably already own some commercial without even knowing it just in your industry super funds.

But so we like playing under that space where we're not competing against those types of investors, the institutional, because we actually find they compress yields because they're literally parking money up into these assets.

When you go sub 20 or most mums and dads operate in probably the sub 20s.

$5 million range.

And above that is your high net worth individual space.

You're going to find that yields are actually a little bit better than those super high $50 million type properties out there because investors individually are going to be more fussy, I think, than someone who's parking up endless amounts of money.

And just the true nature of those types of larger assets can dictate they need lower yields because they potentially have longer leases or even more blue chip locations.

But to answer your question, the lower end of the market is holding up very well in certain asset classes.

And for example, small warehouses, which is sort of that example, I was using that million dollar property.

Warehouses start from around the 500 grand mark.

There is a huge shortage in some areas of these smaller warehouses because there's a lot of tenants looking to store their trade related supplies.

You might have plumbers with a few trucks, they need to store stuff.