At Rethink Group, we pride ourselves on our meticulous approach to identifying and securing high-quality commercial properties for our clients. Here are the top 10 criteria we consider when evaluating potential investments:
1. Strong Location
We target locations with growth potential and strong fundamentals, ensuring properties are either in high-growth areas or offer higher yields to compensate for lower growth prospects.
2. Quality Property
High-quality properties attract premium tenants, require less capital expenditure, and demand less management. We seek properties at market yields or above, balancing quality with cost-effectiveness.
3. Large Land Content
Properties with higher land content typically offer greater capital growth potential. We prioritise properties with low site coverage or a limited number of units in strata complexes.
4. Attractiveness to Tenants
The design, location, and features of a property significantly impact its appeal to tenants. We aim for properties that cater to a wide tenant base, ensuring income security.
5. Flood-Free (or Flood Mitigated)
We assess flood risks and ensure properties are either built above flood levels or have mitigation measures in place to minimise potential damage and downtime.
6. Quality Tenant and/or Multi-Tenanted
A strong tenant covenant is crucial. We evaluate the tenant’s business health, industry stability, and potential for long-term occupancy, favouring properties with multiple tenants to diversify risk.
7. Valuation
We conduct thorough valuations to ensure rents are market-appropriate, yields are competitive, and purchase prices reflect true market value, considering all relevant factors.
8. Value-Add Potential
Properties with opportunities for value enhancement, such as rent increases, expansion, or energy efficiency improvements, are particularly attractive for clients with a growth-oriented strategy.
9. Development Potential
We look for properties with the potential for future development, offering multiple exit strategies and enhancing long-term value.
10. Non-Discretionary Properties and Tenants Preferred
We prefer properties and tenants in non-discretionary sectors, such as industrial or medical, to ensure stability during economic downturns and maximise growth potential in a rising market.
These criteria guide our acquisition strategy, ensuring that our clients invest in properties that offer both stability and potential for significant returns. By adhering to these principles, we help our clients build resilient and profitable commercial property portfolios.
