Growthpoint Properties Australia was born out of the debt-stricken Orchard Industrial Property Fund following the global financial crisis. Starting as a pure-play industrial property trust, Growthpoint quickly expanded into the office sector. Today, roughly two-thirds of the property book is office, and one-third industrial. Growthpoint’s offices are mostly A-grade buildings located outside the central business districts. While some sites have locked in long leases with government or reputable tenants, we believe their city fringe locations are a major drawback. As office tenants seek more premium, better-located buildings, we expect Growthpoint’s office occupancy to remain below the prepandemic average of 97% midcycle. Lease incentives offered to tenants are likely to persist at a higher level compared with the historical average.