Branded Properties Reveal Surprising Rent Figures

A new analysis has revealed the extraordinary property income behind some of Australia's biggest brands. The study found that individual properties leased to household names, including Coles, Woolworths, Officeworks, and McDonald's, are generating landlords thousands of dollars each week.

The highest weekly income was recorded at a Bunnings Warehouse in Traralgon, Victoria, which generates an estimated $26,538 per week. This equates to more than 7500 Bunnings sausage sizzle sausages every week.

Experts warn that the eye-watering rent cheques can disguise what actually makes a branded commercial property a good investment. Jeremy Daunay, co-founder of Vanta Advisory, said that investors should not simply rank properties according to which landlord receives the biggest cheque. He emphasized that other factors, such as lease structure, land value, and remaining lease term, are crucial in determining a property's potential.

The analysis also revealed that some properties have significant upside potential due to their location and existing rent levels. For example, a Zone Bowling property at Frankston has an estimated net income of $337,198 per year, but its passing rent is below the property's longer-term potential.