Growing appetite for fast food investments

CommercialThursday 8 September 2016

Written by Simon Staddon, Burgess Rawson Sydney

Demand for fast food investments is growing as buyers seek more bang for their buck in the property investment market.

Tenant Suburb Yield
McDonalds Childers 4.98%
Red Rooster Coffs Harbour 4.99%
Hungry Jacks Griffith 5.06%
Hungry Jacks Port Macquarie 5.09%
Pie Face Sydney CBD 5.00%
Hungry Jacks Taree 4.97%
KFC The Entrance 4.99%

Over the last few years Burgess Rawson has witnessed significant yield compression for fast food investments, with yields now generally close to 5% irrespective of the location – metro Sydney or regional NSW.

Investors are keen to add this asset class to their investment portfolio, which has resulted in strong market demand. The attractive benefits of fast food investments include:

  • – High profile main road sites with future alternate uses
  • – Secure long term leases to large brand name chains; often multi-national corporations
  • – Fast food operators rarely vacate well located sites
  • – An industry perceived to be recession proof irrespective of economic conditions
  • – Affordable income brackets (generally between $100,000 – $200,000 pa)
  • – Tenants are generally responsible for the ongoing costs of the property and the day-to-day management of the business
  • – Little or no environmental concerns
  • – Appeal to SMSF’s which account for approx. 60% of Burgess Rawson salesTo find out more on how Burgess Rawson can maximise the highest price for your valued fast food investment, feel free to contact us.