Scott O'Neill

I guess, hold back from commercial, but that is changing.

We're seeing there's a lot more education out there on commercial and just the high prices and the low yields that you're going to see in residential after all this growth they've had.

It's going to push more investors to commercial just by default because they need better income.

And that trend has rapidly been happening over the last few years.

Look, I never like to generalize, but you do have to generalize sometimes to start with.

And look, we all know COVID, for example, has pushed more people out of the office.

So if you're going to pick the weakest of the three right now, it would have to be office.

But then again, you can't generalize.

Like office might include medical-based properties, the suburban office spaces where out in the suburbs, there might be just a small commercial building with some dentists and some

mortgage brokers or real estate agencies, there's a lot of very good offers out there.

But would you go buy up in a tower in the middle of COVID?

Probably not.

On the other side, you've got industrial.

Industrial is right now from coast to coast across Australia, probably the strongest subsector of the commercial market because all these businesses that have been forced to close their doors with COVID, they buy and store and sell

a lot of their products online now.

So this e-commerce boom actually contributes to tighter leasing markets for the actual industrial spaces.

And on top of that, build costs are going through the roof.

So to build more of this stuff, it costs more.

So there's actually quite rapid capital growth happening right now to the tune of over 15% per annum in some markets for industrial.

On top of that, you're going to get, you know, five, six, you know, maybe even 7% net yield.