National tenants. Secure leases. Real returns.

It’s beyond property, it’s Australia’s economic backbone.

While the ASX continues to ride waves of volatility and global economic headwinds create uncertainty, commercial real estate backed by Australia’s most trusted national brands proves its enduring strength.

These properties deliver something increasingly rare in today’s investment landscape: reliability. They’re income-generating assets anchored by businesses that have become essential parts of our daily lives. As market indices swing unpredictably, investors are turning to these brick-and-mortar investments that consistently deliver real, tangible returns.

Across every corner of Australia, brands like McDonald’s, KFC, Hungry Jack’s, Bunnings, ALDI, Chemist Warehouse and 7-Eleven occupy prime retail positions in our cities, suburbs, and regional towns. These businesses are firmly embedded in our daily routines, ensuring the real estate they occupy maintains its value through economic cycles.

McDonald’s properties continue to set the gold standard for commercial investment. The global giant has invested over $1 billion in Australian produce, with plans to open 100 new locations nationwide, a testament to both the brand’s strength and the enduring value of its real estate footprint. Similarly, Hungry Jack’s reported a remarkable 15% sales increase in 2024 as it continues expanding, while KFC’s steady growth reinforces its position as a premium tenant.

Recent transactions underline the extraordinary value these properties command. A Hungry Jack’s in Campbellfield recently sold for $5.9 million at an impressive 4.06% yield, while a KFC in Springvale achieved $4.8 million at a 4.2% return. The competitive bidding for these assets highlights the confidence investors place in the reliable income streams these established brands deliver.

The Large Format Retail (LFR) sector stands as a key pillar of this resilient market, spearheaded by powerhouse brands like Bunnings, Officeworks, The Good Guys, Petstock, and Rebel. These major retailers anchor LFR centres in strategic locations that ensure consistent customer traffic and long term stability.

This sector continues its impressive trajectory, growing at 3-4% annually with national brands leading the charge. In 2024 alone, LFR generated an astounding $102.3 billion in retail sales, representing nearly a quarter of all retail activity in Australia.

Institutional investors and REITs have taken notice, with companies like Charter Hall Retail REIT and BWP Trust strategically expanding their portfolios through acquisitions of properties leased to these trusted brands. With limited new supply entering the market and consistent rental growth, these assets remain a cornerstone for investors seeking both stability and performance.

Melbourne-based Kinglake Group exemplifies this trend, having recently acquired the fully-leased Sunbury Showrooms in a circa $20 million offmarket transaction. Anchored by The Good Guys and supported by national tenants including Repco, Total Tools, Petstock, and Worklocker, the centre delivers the long-term income security and tenant quality that discerning investors demand.

Convenience retail continues to show remarkable resilience, with brands like 7-Eleven, United, and On The Run/VIVA Energy leading the sector. 7-Eleven’s network of over 750 stores nationwide reinforces its market dominance, while On The Run’s innovative one-stop-shop model – combining fuel, fast food, groceries and more, has revolutionised the convenience retail experience and created exceptional investment opportunities.

The childcare sector has become particularly significant as we approach the federal election. With both major parties positioning early childhood education as a key policy battleground, childcare assets are capturing increasing investor attention.

The incoming government, regardless of which party wins, is expected to maintain or even expand support for this critical sector, making properties like Goodstart Early Learning in Wavell Heights NSW, which recently sold for $4.12 million at a tight 3.72% yield, highly strategic acquisitions. These assets are not just backed by current demand but by bipartisan political commitment.

Recent market developments have only strengthened the case for commercial property investment. With the Reserve Bank signaling potential rate cuts in response to cooling inflation and global economic pressures, the property sector stands to benefit significantly.

While the ASX responded with initial enthusiasm to these signals, experienced investors recognise that equities remain vulnerable to international headwinds and profit-taking volatility. In contrast, the steady rental income from national-brand tenants offers protection against these market fluctuations.

At Burgess Rawson, we’re at the centre of this market shift, consistently bringing Australia’s most recognisable brand-backed properties to market.

Our national Portfolio campaigns serve as a clear indicator of investor sentiment, with thousands of qualified investors participating every six weeks.

The high success rates we achieve reflect both the quality of our offerings and the growing demand for these stable assets.

The trend is unmistakable: investors are seeking security, stability, and dependable income.

They’re moving capital away from unpredictable equity markets toward investments they can see and understand, properties leased to household names that Australians rely on daily. The activity is genuine, and so is the income these assets generate.

With inflation concerns moderating and interest rate relief potentially on the horizon, essential service properties will continue delivering the steady returns that investors need. Combined with strong political support, established brands, and long-term leases, these assets represent a clear pathway through economic uncertainty.

Burgess Rawson will continue to lead the charge, connecting buyers with high-quality, brand-backed properties that offer unmatched performance and long-term potential. In a time of economic uncertainty, these are the assets cutting through the noise.

Portfolio Magazine – Wealth You Can Bank On