Strong fundamentals, such as low vacancies and strong yields, are keeping commercial property markets looking healthy in key urban areas of the country.
In the first NAI Harcourts Key Assets commercial property portfolio for 2018, General Manager Tony Kidd says suburban commercial buildings and prime industrial remain in high demand across Auckland, Hamilton, Wellington and Christchurch.
And in Northland, commercial investment properties with good tenants in Whangarei, Kerikeri and Waipapa are producing yields of 7%-9%.
NAI Harcourts Whangarei sales consultant Peter Peeters says both Marsden Point and Waipapa still have a strong supply of development land and have seen a substantial increase in interest since the election in October.
“The success of the Ruakaka area has never been in doubt as it has New Zealand’s only oil refinery along with a naturally deep harbour and a large, sheltered bay for ships waiting to enter port.
“How fast it develops will largely depend on government action around rail and roading infrastructure, and the ability of Northland MPs to promote the need for these critical works to be completed in a timely manner.”
In a column inside Key Assets, BNZ head of property finance Phil Bennet identifies earthquake strengthening requirements and interest rates as two “potential headwinds” for the commercial sector, though the overall outlook was optimistic.
“Neither of these two head wind scenarios are new to the market and many investors are already factoring some of this in.
“Commercial properties with strong fundamentals – good location, quality building (including a good earthquake strength rating), excellent tenants and a commendable weighted average lease term – should continue to be highly sought after.”
Some of the properties listed in the latest Key Assets include:
1 Corban Ave, Henderson
This one-year-old service station site in West Auckland, leased long-term to Z Energy, represents an excellent investment opportunity. Sitting on 22028sq m, with a purpose-built retail store of 228sq m, the high-profile corner site is managed by the tenant and earns a current income of $324,371 plus GST. Rental growth is built in with annual CPI reviews (the next is due in June) and 10-yearly market reviews. Z Energy is one year in to a 21-year tenancy. This represents a secure, hands-off investment. To be sold by tender, closing 4pm Thursday 22 March 2018. Marketed by Steve Granger at NAI Harcourts North Shore Commercial.
37-39 Omega St, Albany
This is a rare, highly sought-after warehouse/office site in the heart of industrial Albany, available for lease. The 4,190sq m site offers full B-train drive around access, with three roller doors and six loading docks, as well as a large yard suitable for container drops. The site also includes a high-stud 1,546sq m warehouse and 95sq m of office space with 35 car parks. The site is also conveniently located near access to both SH1 and SH16. The site is suitable for a range of business options from logistics and distribution to light manufacturing or even a children’s activity centre. Expressions of interest to lease close 30 March 2018 unless leased prior. Marketed by Marty van Barneveld and Peta Laery, NAI Harcourts North Shore Commercial.
26 Bryce St, Hamilton
This fully-leased office/retail building is located in the heart of Hamilton CBD, currently returning $304,690pa plus GST and outgoings. Situated on the northern side of Bryce St between Barton and Victoria streets, the property sits directly opposite Centre Place Mall and Lido Cinema. The surrounding area is permanently occupied by retail and service businesses with near neighbours including ANZ, SBS and, in the near future, ASB. Bryce St dining lane is also located opposite. The building has 1.919sq m of lettable area on land size of 1,035sq m, with 13 car parks. It has an A Grade seismic rating, strengthened to 82% NBS and the building has been modernised and upgraded, including a new roof. National tenants include The Co-Operative Bank, Absolute IT, Astra Bridal and T&T Childrenswear. Available for sale by Deadline Private Treaty, closing 4pm 23 March 2018. Marketed by Mike Neale, Rebecca Bruce and Kara Gerrand, NAI Harcourts Hamilton Commercial.
- A digital version of Key Assets is available HERE
- Takapuna Warehouse/Workshop – 535m²Superbly positioned on Barrys Point Road, only 3 minutes north of the Harbour Bridge, this 535m² warehouse/workshop is available now on new lease. The premises offer a split level combination of warehouse space and lower stud workshop or light manufacturing areas with access via two full height roller doors, good size mezzanine storage area plus separate office and amenities. Large rear yard with parking for 7+ cars. Key features: - Dual roller door access - Ample yard space - High and low stud storage - Easily Accessible - Available now Call now to arrange an inspection of this exceptional opportunity.
- High Profile Takapuna Showroom – 913m²Situated in the heart of sought after Barrys Point Road in Takapuna, these very smart road front showroom premises are available now on a new lease for the first time in 10 years! Offering wide street frontage with excellent exposure and large front yard for display purposes or customer parking, this building has been extensively renovated. Internal layout provides for a spacious open plan high stud showroom, open mezzanine suited for display or storage, amenities and kitchenette plus lower level warehouse storage or internal covered parking. Comprising retail showroom/amenities of approx 521m², mezzanine display/storage 177m² and lower level warehouse/garage of 215m² the premises include 6 car parks on the front yard plus 2 at the rear. Only 3 minutes north of the Harbour Bridge, Barrys Point Road is home to many outdoor sports, trade retail, automotive, furniture and service retail type uses. Call now to arrange an inspection of this exceptional opportunity.
- Takapuna Warehouse/Workshop – 544m²Superbly positioned on Barrys Point Road, only 3 minutes north of the Harbour Bridge, this 544m² warehouse/workshop is available now on new lease. The premises offer a split level combination of warehouse space and lower stud workshop or light manufacturing areas with access via two full height roller doors, good size mezzanine storage area plus separate office and amenities. Large rear yard with parking for 7+ cars. Key features: - Dual roller door access - Ample yard space - High and low stud storage - Easily Accessible - Available now Call now to arrange an inspection of this exceptional opportunity.
- Multi-tenanted Investment – Attractive Yield.This freehold Milford property is an absolute winner given its location, multiple tenancies and future re-development potential. Milford is in demand from tenants and investors alike. Situated next door to New World Supermarket this regular-shaped freehold site of 758m² (more or less) is zoned Business Town Centre allowing development up to 18 metres in height. Offering investors a potential rental of approximately $299,000pa + OPEX and GST there are 11 tenancies including retail, hospitality and offices. The seismic rating is 100% NBS on the retail portion and 95% NBS on the office. Multi tenanted and offering split risk, properties like this are keenly sought after, call today for more information. For sale by negotiation.
- The Top Spot on Victoria RoadAvailable for lease is a stunning retail shop consisting of approximately 83m² plus shared bathroom facilities with the tenancy directly behind. Positioned with fantastic exposure, located in the heart of Devonport's bustling town centre this space is ideal for a variety of uses. Take advantage of the high foot traffic and growing popularity of Devonport as a seaside destination for locals and visitors alike. This is a superb opportunity to get a prime position for the up and coming Americas Cup. Floor area: 83m² (approx.) plus a share in bathroom facilities. Features: - Wide street frontage - Light and bright retail tenancy - Close proximity to Devonport wharf - Generous street parking - Great foot traffic - Available now For more information and an appointment to view this well appointed space, please contact the SOLE AGENTS at NAI Harcourts today.
- Takapuna Retail Showroom and Warehouse – Barrys Point RdSituated in the heart of sought after Barrys Point Road in Takapuna, these large retail showroom, warehouse and office premises totalling approx. 1,462m² are available on a new lease from September 2020. Offering wide street frontage with excellent exposure and large front yard for display purposes or customer parking this building has been occupied for the last 10+ years as a successful Motorcycle Dealership providing sales, accessories and service facilities. Comprising retail showroom of approx 524m², mezzanine office 186m² and warehousing and storage of 752m² the premises include 6 car parks on the front yard, further 9 at the rear and option for additional basement car parks. Only 3 minutes north of the Harbour Bridge, Barrys Point Road is home to many outdoor sports, trade retail, automotive, furniture and service retail type uses. Call now to arrange an inspection of this exceptional opportunity.