Description

Ground Leasehold: Fast food & QSR – The latest breaks all records selling at 2.97%

As specialists in helping to create cashflow machines from unimproved land here are some cracking examples of recent sales of ground leaseholds.

(photo shown McDonalds Newmarket Qld)

Unanderra NSW (Wollongong area)

First up in August, 2023 a  2414 sqm piece of highway fronting land leased to McDonalds for $201,571 per annum  sold for $5.575M in in other words an initial yield of 3.62%. The rate per sqm represented about $83 per sqm. There were also 3% annual rental reviews

Cardifff NSW ( Newcastle area)

Then in March of 2024 a 3126 sqm approx piece of highway fronting land, leased to McDonalds for an initial rental of $180,000 per annum and then sold for $5, 530,000. This represented an initial yield of 3.25%. The leasing rental rate per sqm was about $57 per sqm approx. There were also 3% annual rental reviews

North Rothbury(Newcastle area)

Then in May of 2024 a 3565 sqm approx piece of highway fronting land, leased to McDonalds for an initial rental of $130,000 per annum, then sold for $4, 370,000. This represented an initial yield of 2.97% approx. The leasing rental rate per sqm was about $36 per sqm. There were also 3% annual rental reviews

We have numerous sites under negotiations to fast food or otherwise known as Quick Service Retail (QSR) tenants. Many of these retailers are negotiating for ground leases. Some of the retailers we are negotiating with,  are not yet commonly known as they are new to Australia and in the main from the USA. Often when retailers are in a start up phase, such as the ones i am dealng with now, need to secure a number of sites confidentially at first in order to obtain scale with their launch announcements. Whilst many of the retailers wanting new stores are wanting a design build model with a leaseback, some many are now also offering ground leases as an option. The ground leases rental rates offered are consistent with some of the ground lease negotiated with McDonalds as listed above.

You may like to look at one particular pad site (picture) we have ground lease negotiations under way at Rothwell in Queensland. Check out our sites for lease page here  Otherwise call us for any further details Rob Stanley-Turner 041898200 or rob@boxcom.com.au

Disclaimer:
All areas and figures are approximate only. All reasonable steps have been taken to ensure the accuracy of this information, but this does not constitute any representation by us and is provided as a guide only. Box Commercial did not sell or lease this property and is offered simply to provide market evidence for our clients and customers.