At the start of the year, retail property was performing exceptionally well, and we even reported that tenants were having to look in the outer suburbs due to lack of supply to match demand.

Like so many things, COVID has changed that. Shutdowns brought on by the pandemic will unfortunately close many smaller businesses for good.

And those that do survive won’t be able to afford the same levels of rent.

Commercial owners are having to cut rent or suspend payments just to keep their rental spaces tenanted.

Rent strikes are also commonplace, with some commercial tenants refusing to pay rent while their stores are forced to close. Chemist Warehouse, Priceline, Red Rooster, and Hungry Jacks are just a few examples of national chains that have stopped paying rent.

The flow on effect will be detrimental to the state of the commercial sector, and it will be interesting to see the extent of these perceived effects.