Retail property has had some press coverage of late.
It has shown a surprising improvement, given global events and the hike in interest rates.
Westfield (a good retail barometer) reported a strong mid-year result from its Australian shopping centres.
And furthermore, rentals have also started to climb … as the economic recovery has given shoppers confidence to start spending again.
Currently yields ranging between 4% and 6.5% across these various strip centres. And would indicate that investors are returning to retail property once more.
If you are planning to acquire some Retail property, you need …
1. A strong tenant (well-established, or proven backing);
2. A long lease (5 years+); and also
3. Solid rental reviews (CPI or at least 3.75% pa).
With these in place, you should be able enjoy a good long-term investment.