Good morning all, i have a piece of land just beside the toll and beside petronas and petron. Past few months Macdonald recently showed interest in renting the area.

Not sure if anybody has the same experience but what rental am i looking at and the Rental tenure?

i was offered (rough estimation):
12k per month, increment of 7-20% every 3 years
Rental for 30 Years.

i'm kinda skeptical as the 30 years period is the downside for me. By then i'm already 55 years old, who knows maybe i got some plans to develop it.
Recently beside petronas just opened a starbucks, hence mcD became more aggressive and want to up their offer.

ask for 20k/month since they so desperate.
once you hv 20k monthly on hand, go to rent other land when u hv another plan.

Im pretty sure they will extend it after 25 years.. and u can pass it down to your kids or whoever

if you ask me its a good deal.
u can take the rental and buy another land for your own plans in the future.

anyway u can always renegotiate the terms if you feel 30 years is too long.

why not...rather wasted leave the land to be waste...at least you have steady income.... the 30 year agreement is due to turn over profit for them...they may have done the survey and it may due to clear the land, build the facilities, etc..etc.. it may turn over 3-7 year of profit...that why they need prolong the agreement... why not nego their rental per month... or duration if you concern...

better take the deals as they can find another land to build. nego to renew agreement 5 yrs basis or etc

i think it's not McD themself who offered to lease your land.. it's probably a broker.. well at least that what happen in other states

broker will took usually 20k monthly.. and gave to you your 12K..

you can never skip a broker.. mcD will ignore you if you direct nego.. did happen to a few people with land

thank you for the honest opinion! the offer was by a franchisee company as they've been in discussion with us for the past 1year since i was reluctant to accept the 30 Year rent tenure. Now they're back to re-nego again seeing that starbucks has opened just beside.

Try to negotiate to include gross turn over (GTO) also.

Can draft 15+15 years type of option renewal agreement,

30 years is a bit too long, who know the land price may shoot up a lot, by then you are renting too cheap.

Wahhh eazy money, goyang telo masuk 12k pon nk tamak lg..

Similar to last time, 70's time, many house owners think RM100~200 is big, (a bowl of mee only cost Rm0.20), and signed long term or with no end date rental agreement.
20~30 years later, landlord regretted.

Land price 99% likely to appreciate a lot after 30 years.

But bruh, tat is house rental and this is land rental, by 2 years time, he already collected +200k and can even afford to buy another land for agriculture work. Comparing to house rental is kinda unfair as owner will still unable to collect large amount of rent to buy another house.

We don't know how large the land is.

The land itself may be worth millions at current market price.
12k per month, 1 year 144k.
If the land worth 5 million currently, then 12k per month workout less than 3%, worst the FD rate, while rental rate stuck at this level, and yield become worst if land price appreciated further.

Normally, for such long term lease, inflation factor in term of land price and rental market needs to be considered.

Need to look long term as well. .

Oh i c, yeah be did pointed out this "i'm kinda skeptical as the 30 years period is the downside for me. By then i'm already 55 years old, who knows maybe i got some plans to develop it.
Recently beside petronas just opened a starbucks, hence mcD became more aggressive and want to up their offer."

i will give it a go if the ROI is 10% or atleast 7%.

with the limited info of the situation and uncertainties in the future, you will never know if the offer is really profitable for ts or not, but came up with a stupid comment. your username says it all.

Apologies for the limited info.
Land size: 69 X 295
Type: FreeHold
No ultilities yet (no water pipping, electrical lines)
Licenses for F&B already approved by PLUS (this was done by us and not McD)

meter or ft?

License for F&B means it is a commercial land.
Commercial land always fetch good price.

Current value of the land? or similar adjacent land price?

It's fix at 30 years. Same as KFC. The reason they lock you for 30 years its because they are the one forking out cost to build the drive through, so all cost and risk is taken into consideration hence the 30 years lease.

So, if you think 30 years is too long, then you put discuss an option for them, to sell the land on the 15th year back to the franchisee. Franchisee can buy the land and own it to run the outlet.

For rental amount, cant comment much as too limited info on your land. You can ask around for the rental market, or use valuer to access the rental value for you and negotiate with them, since they are the one approaching you.

If you have plans to develop it on your own, then just scrap off this plan.

BUT, if you can develop a commercial buildings on your own say a row (5 units) of 2 storey shops, you can negotiate and rent the building to them with much more higher rental AND without them locking you for 30 years. You can rent to them for say 10 years on 4+3+3.

Most probably ft. around 20k sqft.

McD offers around RM 0.50-0.80 psf for vacant land.

So if its RM 12k, then its RM 0.60 psf.

If its meter, then its 5 acres. Then no need think, rent to them only. they only need half acre to 1 acre of vacant land to build drive through or outlet. Left 4 acres can build commercial which McD can bring traffic to commercial shop and vice versa. complement each other.