Photo: McDonald’s St Albans sold on a 2.92 per cent return.
Australia’s commercial property market ended the 2025 financial year on a high, with Burgess Rawson from CBRE recording $1.69 billion in sales — a 21.96 per cent increase on the $1.39 billion achieved in FY24.
While the number of transactions held steady, with 382 properties sold compared to 385 the year prior, the rise in value reflects growing investor appetite for high-performing, essential service assets, particularly for fast food, convenience retail and childcare which recorded strong growth in sales.
“Assets in recession-resilient sectors such as fast food, childcare, and convenience retail recorded strong transaction growth, driven by intensified demand from private investors,” said Jesse Lapham, Director of Research and Data at Burgess Rawson from CBRE.
“Fast food was the top-performing asset class, with sales surging 62 per cent year-on-year to $228.9 million, driven by demand for drive-thru investments leased to leading national brands. Childcare remained a core category, with $293.7 million in sales, up from $284.9 million the previous year, while convenience retail climbed more than 25 per cent to $228.3 million.
“We’re seeing a consistent trend of private buyers targeting asset classes that offer stability, brand strength and secure income,” Mr Lapham said. “The year-on-year increase in transaction value — despite similar volumes — shows buyers are prepared to spend more on quality.
“This is reflected in the benchmark yields achieved with recent fast food assets selling as sharp as 2.92 per cent.”
He added that recent data from the firm’s Commercial Market Index (CMI) points to sustained momentum in the sector.
“In June, the CMI hit 123.09 — the highest figure we’ve recorded — indicating the number of commercial properties sold within 60 days was nearly 19 per cent above the long-term average,” Lapham said. “It confirms what we’ve seen on the ground: a fast-moving market with high buyer confidence.”
Matthew Wright, Partner at Burgess Rawson from CBRE, said the market’s performance reflects a deeper investor shift toward long-term resilience.
“Buyers are increasingly focused on properties that will perform across all cycles,” he said. “There’s strong competition for assets backed by household names, with long leases and secure income streams — particularly in growth corridors and established suburban markets.
“With FY26 now underway, the trend is expected to continue, as private capital continues to favour essential service investments that offer a combination of reliability, tenant strength and long-term relevance,” he said.
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