In NZ, I am seeing too many retail (Especially hospitality) business closures. Particularly, from long term (10 year +) businesses.
Note. If you are a retail investor buyer? Please make sure you do real due-diligence not only on the opportunity but also the vacancy rate!
If buying vacant with the hope of renting make sure your financing and insurance brokers know that it will be vacant, and be prepared for a long wait to find the right tenant.
Here is another one:
Hi @chris-newkids. You raise a good point about the future of retail. I wonder if rental rates and operating expenses are having a big impact on businesses? Are owners, trying to recover too much from tenants? Our building operating expenses have increased so much year on year. The amount of work now required to manage a building and stop tenant turnover really does make you ask what is the benefit in owning!
We tried investing in retail, in the early 2000’s. Didn’t go well for us, so we sold our properties.
Hi @ABarnes. Would you mind sharing your knowledge with what you learned as a retail investor? It will be appreciated by our community.