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What Defines a “Good Deal” in Today’s Market?
In a changing market, deal selection matters more than ever.
The best investors aren’t just buying property - they’re analysing risk, income, and upside in detail.
1. Tenant Quality Matters More Than Ever
A strong tenant can make or break an investment.
Key considerations:
- National or established brands
- Financial stability
- Store performance
In one example, a tenant’s location was identified as one of their most profitable - reducing the risk of vacancy significantly.
2. Rental Upside Creates Hidden Value
Some of the best deals aren’t obvious.
In one case:
- Rent was significantly below market
- Increasing rent could unlock ~$80–90K additional income annually
- This translated into ~$1.4M in added value
This highlights the importance of:
- Market rent analysis
- Active asset management
3. Lease Structure Drives Valuation
Lease terms can dramatically impact value. Investors often trade off:
- Higher rent vs longer lease
- Short-term yield vs long-term security
A longer lease (WALE) can:
- Increase valuation
- Reduce risk
- Improve buyer demand
4. Supply Constraints Are Supporting Rents
One of the biggest macro drivers is limited supply.Due to:
- Rising construction costs
- Developer pressure
- Reduced new builds
We’re likely to see:
- Tighter vacancy rates
- Continued rental growth
5. Big Investors Are Moving First
Interestingly, larger investors are becoming more active - not less.
While smaller investors hesitate:
- High-net-worth buyers are acquiring assets
- Deal sizes are increasing
- Competition at the top end is rising
Key Takeaway
In today’s market, great deals are built — not found.
The edge comes from:
- Deep due diligence
- Active negotiation
- Understanding tenant behaviour
