Fast food and fuel lead retail leasing field
Australia’s commercial property leasing market is showing signs of two-paced performance, with fuel retail and quick service restaurants at the head of the field.
As most sectors begin the road to recovery after the height of the COVID-19 pandemic, Burgess Rawson senior leasing executive Arton Meka save some have weathered the challenges better than others.
Fuel and convenience retail and quick service restaurants (QSR) had proven remarkably resilient, Meka says.
“As the COVID-19 pandemic evolves, we’re seeing it affect many industries in varying ways, however its implications aren’t affecting all retail sectors equally,” he says.
“At Burgess Rawson, we have seen strong and consistent demand in the retail fuel and drive-through QSR space.”
Meka says while some industries have been downsized significantly due to a decline in patronage or coronavirus restrictions, in many cases fuel and fast food brands have seen opportunities to grow their national footprint.
“Fuel retail and drive-through QSR are still actively expanding their network plans and looking into the future despite the slowdown in the market. Like many retailers, sales may have been impacted during recent months, however people are still travelling and will always need to refuel with both fuel and food, marking these sectors as essential.”
Meka says some landlords and developers have taken the chance to investigate potential new sites, restructure lease agreements or seek stronger-performing tenants to shore up their assets.
“We’ve been assisting in procuring fuel and QSR retailers to new greenfield developments, as well as negotiating new leases with existing assets,” Meka says.
“For instance, Liberty replacing Caltex in Sydenham, Victoria and in Queensland, a Shell/ Coles Express in Eight Mile Plains. We have also replaced a Red Rooster with a brand new Taco Bell in Roxborough Park, Victoria.”
Published on Real Commercial