McDonald’s Chatswood’s latest move
Share
McDonald’s Chatswood’s latest move highlights a change in direction for blue-chip fast-food tenants
As the commercial property market continues to evolve, a key trend is emerging – blue-chip fast-food tenants are moving beyond small-scale takeaway outlets within shopping centres and committing to long-term leases with high-end fit-outs in premium street-front locations. This shift reflects rising consumer demand for dine-in options post-COVID, alongside the ongoing popularity of takeaway services.
This change presents an exciting opportunity for landlords and investors to secure high-quality tenants on long-term leases. However, bringing such deals to fruition requires the expertise of a commercial agent experienced in complex negotiations, with strong relationships across all stakeholders – from tenants and landlords to lawyers.
In this article, we share a recent case study that illustrates this trend in action and why working with an experienced commercial agent is critical.
McDonald’s secures iconic Chatswood site just in time for pre-holiday season fit-out
A recent example of this emerging trend is McDonald’s decision to expand its presence in Chatswood. Previously limited to a small takeaway-only outlet within Chatswood Interchange, McDonald’s seized the opportunity to establish a larger dine-in store at 346–348 Victoria Avenue, recently vacated by Lowes Menswear.
Recognising the value of this high-profile site, which provides excellent visibility to both local customers and foot traffic from the bustling retail strip, McDonald’s acted swiftly in commencing lease negotiations with Bill Geroulis , Shead Property leasing and managing agent for the landlord.
While the negotiation process was intense, it was handled efficiently and effectively by Bill and resulted in an outcome that served the needs of both the landlord and McDonald’s, the new tenant. Below are some of the more notable challenges highlighting the need for an experienced commercial agent.
- Commercial terms negotiation – Finding terms that satisfied both the landlord’s and McDonald’s goals required careful negotiation, balancing long-term value for the landlord with commercial flexibility for the tenant.
- Complex legal negotiations – McDonald’s internal legal team insisted on using their standard lease documents with specific conditions. Bill Geroulis worked closely with the landlord’s solicitor, Garry Leong, to navigate these complexities and ensure a mutually beneficial outcome.
- Time sensitivity – With an ambitious goal to open and begin trading before the busy holiday period, McDonald’s required rapid execution of the lease to start their fit-out on schedule. Thanks to swift negotiation, the lease was finalised, builders were engaged, and the fit-out is now underway.
Trusted expertise for navigating Sydney’s dynamic commercial market
This deal demonstrates the value of working with an experienced team that understands the nuances of complex commercial negotiations. Shead Property’s market expertise, combined with strong relationships with tenants, landlords and legal advisors, ensured the lease was structured to meet both parties’ objectives within a challenging timeframe.
The McDonald’s case study also reflects a broader trend in retail real estate – blue-chip fast-food brands are expanding beyond their traditional takeaway model by reintroducing dine-in services, providing customers greater flexibility to choose between takeaway and dine-in options.
At Shead Property, we pride ourselves on providing the specialised advice and support that landlords and tenants need to navigate Sydney’s dynamic commercial property market. With a proven track record of successful negotiations involving global brands and local investors alike, our team is here to ensure you get the best possible outcome, no matter how complex the deal.
For personalised advice or assistance with your commercial property needs, contact Bill Geroulis on 0413 100 200 or email bill@shead.com.au.
Discover the current market value of your property
Our wealth of experience across our whole team will get you a better price for your property.