Fast food

Savvy property investors chasing stability and long-term growth are parking their money in fast food outlets and medical centres.

A standalone McDonald’s with price expectations above $2.5 million is already attracting strong buyer interest ahead of Stonebridge’s October portfolio auction next week.

Investors are chasing certainty in familiar locations and essential service assets with long-term leases, with buyers new to commercial fighting for more affordable assets.

The popular international food franchise founded in Japan is a tenant within this fully leased retail investment in one of Queensland’s fastest growing areas.

The phrase, ‘Would you like fries with that?’ has been the key ingredient to many commercial real estate portfolios. How did Australia’s fast food obsession come about, and how is it driving real estate investment?

Commercial agency Burgess Rawson witnessed a ”flight to quality” across its three-day portfolio auction this week, with investors turning to the tried and tested childcare, retail and medical assets.

A KFC in NSW sold on what’s believed to be a record low yield – 2.89% – and buyers continued to show an interest in childcare assets at the Stonebridge national portfolio auction yesterday.

Despite interest rate rises scaring off some buyers, the Burgess Rawson portfolio auctions proved many are still prepared to pay a premium for essential service assets with long lease terms.

One of the first major portfolio sales of freestanding commercial property on the eastern seaboard since the federal election is expected to highlight investors’ voracious appetite for the ‘known quantity of fast food’ and the ‘strong and stable’ childcare sector.