INVESTING IN COMMERCIAL PROPERTY: WHAT MAKES A GOOD INVESTMENT POST COVID?

COVID changed the way we operate as a society. It forced businesses to change processes; it reshaped working from home, and the result was big wins or major losses depending on which sector you operate within. Commercial property was no different. Within the sector, there were winners and losers. Which is why it’s a good time to ask the question – what makes a good investment post-COVID?

There were a few areas that continued to perform where everyone else struggled. Fuel stations, childcare centres, and car dealerships are perhaps the largest. Risk-averse investors need to consider future-proof investments. So, those that continued to soar during the pandemic were COVID-resistant investments. As more people hit the roads, essential services, such as fuel stations and car dealerships, were in need. Likewise, essential workers still relied on the services of childcare centres to provide their children with care. In terms of commercial real estate investments, what you want is an essential service that will keep on ticking no matter what is going on in the world.

While retail endeavours were forced to shift their focus to online operations, many of them have walked away from leases and will be unlikely to return. Retail properties should only be viewed as a sound investment if the space can be repurposed for a more suitable long-term renter.

Younger people are interested in city-living that provides them with a base close to their jobs or education. It also ensures easy access to healthcare. So, opting for commercial properties that attract long-term leases, such as fuel stations, is a wise move for any investor.

Office space may still provide yields, but with many businesses choosing to embrace telecommuting, they may also choose to downsize their offices to reflect the change. High-density city office space will always be a safer option than a suburban investment. If a company doesn’t make it, you will have more options for new renters.


*Disclaimer: This article is for general information only and should not be relied on as advice. You should consider your personal situation and seek advice that is specific to your circumstances before making any decisions based on this information.  If there are any issues you would like us to discuss with us arising from this article, please contact us*

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