Retail
The retail market has been one of the harder hit asset classes over the past five years , even prior to COVID-19 competition from online retail . This raised the question of the viability of many retail assets , pressuring investment returns . We ’ ve seen , however , the reinvention of many retail centres and strip shops over the last few years , capitalising on the growth in alternative uses such as medical and childcare . These spaces have also been creative in the adaptation of customer experience via entertainment and food offerings . Investment has rebounded again , creating new benchmarks in yields , with assets with development potential now viewed in a different light . While this market has endured the greatest volatility of the major commercial markets , returns continue to be positive and investment demand up albeit at the right price .
Over the past 10 years , retail property has been under the microscope , and during the last few years not enjoyed the same level of investment demand as other commercial real estate . Despite this , total returns still averaged six per cent per annum , while over the longer term ( 20 years ), total returns achieved nine per cent annually , highlighting that commercial assets are a long-term investment play .
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