Essentially the business at a specific location depends on...

Essentially the business at a specific location depends on having the lease so child minding businesses would be loath to surrender a lease. A new lessee would essentially pick up the business for close to free. I believe that is a significant reason the ABC Learning Administrators kept paying the leases back in the AEU days before the businesses were sold on.

I agree the property valuations may take a bit of a hit but nowhere like the drop in the CQE SP. After all the properties should be underpinned by nearby residential prices.

REITS are a bit like quasi bonds and even though long term bonds were hit a bit recently because of the increasing risk profile the Reserve Banks are doing their bit to pull long term bond rates down. On the other hand with bank interest rates trending to zero the yield on CQE is looking increasingly attractive. That's why I bought a few more recently