10 Questions Commercial Property Investors Should Ask During a Potential Global Trade War
Recent trade tensions and global uncertainty have created volatility across markets. Commercial property investors face questions about how their portfolios will perform. At ASA, we’re proactive in assessing both obvious and less-visible risks. Here are 10 key questions to consider in today’s environment:
1️⃣ Could your tenants be affected by trade disruptions?
Tariffs and trade restrictions can hurt manufacturing, logistics, and retail tenants—potentially reducing rental stability.
2️⃣ Is your portfolio well-diversified?
Property portfolios spread across regions and industries are better insulated from the impact of localised or sector-specific downturns.
3️⃣ Are your leases long-term and secure?
A strong Weighted Average Lease Expiry (WALE) and tenants with high credit quality, such as national chains or government entities, offer greater income visibility.
4️⃣ Do your tenants rely on global supply chains?
Even domestic operators may face disruption if inputs or inventory come from overseas.
5️⃣ What’s the interest rate risk?
Trade wars can increase inflationary pressures, leading to interest rate hikes. Rising rates can affect borrowing costs, reduce investor appetite for real estate, and put downward pressure on property values.
6️⃣ How resilient is your asset type to consumer shifts?
Non-discretionary retail—supermarkets, fuel, pharmacies—tends to outperform fashion or leisure retail in economic uncertainty.
7️⃣ Are your leases inflation-protected?
Leases tied to CPI or fixed annual increases help preserve income even if costs rise due to tariff-driven inflation.
8️⃣ Does your fund manager have through-the-cycle experience?
Look for those with a proven record of navigating past downturns through active asset management, leasing, and repositioning.
9️⃣ Is commercial property playing its role in your portfolio?
When equity prices swing due to headlines or politics, commercial property can provide welcome stability.
🔟 Are you investing based on fear or fundamentals?
History shows that knee-jerk reactions often lead to missed opportunities. Instead, assess whether your investments are well-structured and built for long-term resilience.
Final Thought:
The global economy may be entering a more turbulent phase, but commercial property—particularly when focused on quality assets and strong tenants—continues to offer dependable income and diversification.
📌 The ASA Diversified Property Fund offers:
✔️ 7.20% p.a. cash yield (based on current unit price)
✔️ WALE of 9.7 years
✔️ 98.6% occupancy
📩 Discuss your strategy with us or learn more: www.asarep.com/dpf
Disclaimer: This post is for general information only and does not constitute financial advice. Past performance is not a reliable indicator of future performance. Returns are not guaranteed. Investment into the ASA Diversified Property Fund should be made via the PDS available at the link above.