Commercial Investment Trends January 2021

We have been closely monitoring the performance of all asset classes during 2020. Whilst the economy has faced significant COVID-19 headwinds, there have been several categories outperforming the wider market.

These include:

– Healthcare

– Specialised Logistics

– Other essential service providers

We believe the long-term prospects for these sectors are very strong; particularly Healthcare.

Healthcare demand is linked to the ageing population and longer life expectancy. The Australian Bureau of Statistics are forecasting the population in the 65+ age bracket is set to increase by 3.5% pa for 2019 – 2029.

Interestingly, 80% of Australians are living with long-term health conditions that require ongoing care.

From a commercial investment perspective, there are several compelling reasons to consider Healthcare as a viable investment:

> Strong lease covenants. The tenants are often established and run very profitable businesses.

> Tenant preference for long leases with fixed annual increases.

> High occupancy rate.

For more details, contact Matt Hoath on 0418 543 714.

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