When assessing a commercial investment, experienced investors know that yield is only part of the equation.
When assessing a commercial investment, experienced investors know that yield is only part of the equation.
The more important question is whether the tenant will still be there in 5, 10 or 20 years’ time.
Kollosche Commercial sales agent Adam Grbcic says tenant longevity is key when considering an investment with health-related assets among some of the most premium opportunities.

“Investors prefer tenants such as medical centres, dentists and veterinary clinics because over time they build an established customer base, who are in the habit of going to the same location,” Adam says.
“Relocating would leave them at risk of losing established clientele and business continuity, so they very rarely move.”
Yet, the reasons to stay put go beyond just customer habits.
Adam says healthcare operators typically invest heavily in purpose-built fit-outs and specialised infrastructure that are costly and time-consuming to replicate elsewhere.

