Private investors are acquiring fast-food outlets, medical centres and childcare facilities in a final push to secure long-term income before an expected drop in available property from 2026. Almost $50 million changed hands at a recent Sydney auction, with increasing interest in sites leased to major tenants like McDonald’s and Hungry Jack’s.
The auction, hosted by commercial agency Burgess Rawson from CBRE, saw buyers spend just under $50 million across a range of retail properties. These included fast-food locations in Queensland and New South Wales totalling more than $16.5 million, along with over $9 million directed into childcare centres. This reflects a notable rise in demand for property types viewed as resilient in economic downturns, particularly those linked to essential services or daily spending.
Among the key sales was a $5 million ground lease on a McDonald’s in Cairns, which achieved a low yield of 3.38%. A Hungry Jack’s in north-west Sydney sold for more than $7.4 million, with a yield of 4.49%. In comparison, non-traditional assets such as a retail site in Bega and an Oliver’s along a Gundagai highway sold at yields above 9%, highlighting the range in investor expectations based on brand appeal and location.
The trend indicates that buyers are favouring properties supported by national brands with secure lease terms. This preference is becoming more pronounced as construction and land costs continue to rise. Supply across the Australian retail development sector is forecast to drop by almost 75% by 2026, further fuelling demand. Analysts say the market is showing signs of recovery from previous slowdowns and growing involvement from large institutions suggests commercial property is gaining strength again.
