1. Think Long-Term

The benefits of commercial property investment typically manifest themselves over time. For example, income growth through annual review mechanisms in leases build over time, especially for long-term leases.

In addition, transaction costs associated with purchases (stamp duty, due diligence costs, etc.) are amortised over time, becoming less significant in a capital sense the longer the property is held. Whilst short-term gains are possible through opportunistic purchasing and good management, these gains can also be accretive over the long term.

Structural Constraints Are Driving Opportunity

What makes this turning point particularly compelling is the absence of speculative oversupply. Unlike previous commercial property cycles where demand lifted into a flood of new development, this recovery is being shaped by scarcity. High construction costs, labour shortages, and tightening lending conditions have made new office development financially unviable in most markets. That scarcity is already showing in stabilising incentives and rising face rents – particularly for well-located, energy-efficient assets with strong tenant appeal.

These conditions make countercyclical office investment in key markets particularly attractive – and central to Natgen’s investment philosophy, which prioritises income resilience and capital growth potential.

Location is always key – and Brisbane is a standout. With above-average net absorption, a robust small to medium enterprise (SME) rental base, and significant ongoing infrastructure investment, the city continues to attract and retain corporate occupiers. The upcoming decade of infrastructure spend – more than $107 billion – is supporting demand while also tying up labour and resources – further limiting new project feasibility. As a result, existing assets in strategic, inner-urban precincts are poised to benefit from improving leasing fundamentals and growing competition for space.

Natgen Investment Trust SG25: Exposure to the Upswing, at a Discount

Natgen’s latest opportunity, Natgen Investment Trust SG25, offers investors early-cycle exposure to this recovery. The asset is a fully leased, energy-efficient office building in Southgate Corporate Park – one of Brisbane’s most tightly held business precincts. With a 5.0-star NABERS Energy rating, strong blue-chip tenants, and excellent transport and amenity access, the asset is well positioned to benefit from both tenant retention and future rental reversion.

Importantly, the asset is being acquired below replacement cost, providing a built-in valuation advantage. In a market where new supply is constrained and sustainability aligned assets are commanding a rental premium, this creates meaningful upside potential – both in income and capital value over the medium term.

A Window of Opportunity

History shows that property markets don’t ring a bell at the bottom. By the time the momentum is obvious, much of the early value has already been captured. The re-rating of the office sector has begun – and opportunities like SG25 offer a rare combination of strong income, high-quality tenants, and real capital growth potential in the years ahead.

Now is the time to be selective and profit from Brisbane’s infrastructure decade.

This guide will break down these two investment types in simple terms, helping you understand which might be the best fit for your investment goals.

What Are Australian Real Estate Investment Trusts?
Listed Australian Real Estate Investment Trusts (A-REITs) are listed real estate investments which are traded on the Australian Securities Exchange (ASX). They usually own a portfolio of properties which are geared between 10-30%.

Typical benefits include:

• Ease of Access: You can start with a small investment amount via an online broker, making it easy for new investors to enter the market.
• Income and Growth: REITs typically pay regular dividends from rental income, alongside potential capital growth from property value increases.

What Are Unlisted Real Estate Investments?
Unlisted real estate investments involve investing directly in properties or in funds that own physical real estate, but these are not traded on the ASX. They can be;

• Open ended and accept applications for units daily but have limited liquidity, or
• Closed ended like Natgen Trusts – where investors have an agreed investment term for example of around 5-6 years.

Typical benefits include:

• Stable Income: Unlisted property trusts tend to provide consistent rental income, often at higher yields than listed REITs.
• Less Volatility: The value of unlisted properties isn’t affected by daily market fluctuations, leading to a more stable investment.
• Tailored Investments: Unlisted funds can be tailored to specific sectors (like medical or industrial) or locations, allowing for targeted investment strategies.
• Tax Benefits: Unlisted investments often come with tax advantages, like depreciation deductions and capital gains tax (CGT) discounts.
• Control: with closed end funds, you can choose if you want to invest in the trust and therefore a particular property.

Which Is Right for You?
Choosing between listed and unlisted real estate investments depends on your financial goals, risk tolerance, and investment horizon. The table above summarises features which some investors value over others. However, if you’re seeking stable income, tax benefits, and are willing to commit for the long term, unlisted investments like Natgen Investment Trusts could be more suitable – but as always you should seek advice as your personal situation may be different.