Scott O'Neill

Obviously, there's different asset classes in commercial which perform differently depending on the economy at the time.

We all know COVID has pushed people out of offices.

That's meant that we've seen less rental growth in office space, particularly CBD high-rise office, which is more of a cookie cutter, you know, bland type asset.

You know, it's almost like a homogenous type property.

It's a floor plate.

It's just square meter base.

Some properties I've used, some don't.

Like there's just not a large variation.

It's not a unique property.

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.