Do the KFC Melbourne leases change retail property pricing?

They support firmer pricing for assets with long leases and strong brands. Ten‑year terms reduce income risk, which can help cap rates hold. Buyers may accept sharper yields for predictable cash flow, especially in inner‑city areas with strong foot traffic and delivery demand.

Does the Nandos site becoming a hotel signal trouble for food chains?

Not necessarily. It shows that high‑value sites can shift to the best economic use at a given time. Nandos can still grow in other locations. For owners, the lesson is to design assets that can pivot uses so rents keep pace with demand.

Are quick service restaurants safer than other retail tenants?

They often show steadier sales across cycles, helped by delivery and value pricing. That can lower vacancy risk versus discretionary fashion. Still, investors should test lease terms, sales performance, and nearby competition. Strong sites and clear make‑good clauses matter as much as the brand.

What should Australian investors track after these announcements?

Watch leasing term length, rental review structures, and incentives on new QSR deals. Monitor planning updates that could enable hotel or mixed‑use conversions in CBD zones. Review tenant sales trends and delivery mix to gauge sustainability of turnover and, by extension, the strength of future rent negotiations.

Global Market Insights

Nando’s Exit, KFC Melbourne Leases Reprice QSR Demand – February 7

ByDanny Kontos February 7, 2026February 7, 2026

Nandos is back in the news as a former UK site moves to a hotel project, while KFC signs two inner‑Melbourne stores on 10‑year leases. For retail property Australia, these signals matter. Strong quick service restaurants can stabilise rent rolls, while changing footprints affect values and risk. Today we unpack what KFC Melbourne leases say about demand, what the Nandos redevelopment means for urban retail, and how investors can position for income and growth in 2026.