Australia’s fast food property market is heating up, with major franchise sites including McDonald’s and Hungry Jack’s attracting keen interest from investors seeking stable, recession-proof income.
A series of high-profile retail sites will be put under the hammer in the coming weeks, including newly built McDonald’s, Starbucks, and El Jannah outlets in Melbourne’s northwest.
These are part of a A$48 million mixed-use development in St Albans and are expected to generate annual net incomes of $175,000, $251,000, and $371,000 respectively.
“Fast food outlets from big name brands typically do really well and are in high demand [from] property investors,” said REA Group senior economist Anne Flaherty. “McDonald’s is a classic example of a franchise where we see very strong demand and very strong levels of competition," she added.
Burgess Rawson partner Jamie Perlinger noted that this is the first McDonald’s ground lease offered in Victoria since 2015, citing high foot traffic and strong tenancy terms.
In Albury-Wodonga, a Hungry Jack’s site with a secured 15-year lease and annual income of $203,350 is also scheduled for auction in July.
“There is arguably no more popular asset type for defensive investors in Australia right now than fast food,” said RWC’s Michael Feltoe, calling it an ideal passive investment.
