With the impact of COVID-19 in 2020, what is the new normal for the economy and more importantly for our commercial and rural property? This is something that we are all trying to understand and navigate and something that only time will reveal!
New Zealand has weathered the COVID-19 storm reasonably well, however with the latest outbreak of community transmission in Auckland, further economic and political uncertainty has been created. Overseas, the pandemic is far from over, and with the fresh outbreak in Victoria, Australia, the trans-Tasman bubble is becoming increasingly unlikely in 2020.
The country continues to receive significant government support and only when this comes to an end, will we begin to see the full economic impact of COVID-19. We expect New Zealand to emerge with a smaller economy, with key export earners such as tourism, hospitality and the international education market significantly impacted by the border closure. Our primary produce markets are becoming more important as we look to them to increase export earnings and help offset the market segments that have been significantly impacted.
Our rural team, which cover farming, horticulture and forestry, are generally positive on market conditions, with strong enquiry for horticulture and forestry in particular, and numerous active corporate investors across the rural markets. Banks appear more conservative with regards to the rural lending sector and are doing more detailed due diligence on potential clients.
From a property and business perspective, we are seeing mixed feedback across the country and varying performance across property sectors. Companies that own property assets are increasingly enquiring about the creation of sale and leaseback options as a means of freeing up capital.
Industrial property continues to be the sought-after asset class, with demand coming from owner occupiers as well as local, national and, to a lesser extent, international investors.
Whilst we see a positive outlook for industrial properties, retailers are facing significant challenges with many deciding to close their doors. A welcome addition to the Auckland retail landscape is Commercial Bay at the base of Auckland’s Queen Street, which opened just after the previous lockdown. Congratulations to Precinct Properties on delivering a world class asset!
These are certainly interesting times.
NAI Harcourts New Zealand
This article is featured in NAI Harcourts Market Leader Issue 3, 2020
- 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.
- Takapuna Office/Warehouse – Approx 212m²Smart workspace featuring a functional mix of office and warehouse space in central Takapuna. Features include polished concrete floors, full height glass partitioning, three good size partitioned offices, air conditioning, staff lunch room and easy warehouse access. FLOOR AREA: Total area approx 212m² FEATURES; - Modern office fit out - Roller door access - Affordable rental rate - 4 car parks - Available November 2020 Be quick, this is a rare opportunity to secure well appointed space in a sought after location offering easy access to the motorway and city. For more information and an appointment to view please contact the sole agents at NAI Harcourts.
- Boutique Devonport OfficePositioned on the first floor overlooking busy Victoria Street, Devonport Library and Windsor Reserve. Located in the heart of Devonport, this professional office at 33 Victoria Road has excellent profile along with access to the recently redeveloped Devonport Wharf. The office has exclusive use of a kitchenette and shared use of toilet facilities. Floor area: Approx. 49.6m² Car parking: Available upon request Features: - Superb location - Variety of cafes and eateries nearby - Air conditioning - Close proximity to Devonport wharf - Flexible availability For more information and an appointment to view this well appointed space, please contact the SOLE AGENTS at NAI Harcourts today.
- Boutique Devonport RetailShop 1 is a superb bite-sized opportunity to secure your place in the heart of Devonport. This arcade tenancy comprises of 32m² with exclusive facilities. The Arcade is home to a range of businesses including a cafe, Barber, Hairdresser and boutique retailers including 4 first floor office suites. With high pedestrian foot traffic off Victoria Road and street profile via Wynyard Street, this position will be hard to beat. The Total weekly cost is only $311 + GST per week (including outgoings). Features: - Superb location - Natural light - Character brick arcade - Close proximity to Devonport wharf - Through access to Wynyard Street - Short term retail opportunity for the right tenant - Available now Available Options - Shop 9: 30 m² For more information and an appointment to view this well appointed space, please contact the SOLE AGENTS at NAI Harcourts today.
- 7.5% return on this tenanted investment! $1,626,000FOR SALE: Looking for a commercial investment property returning better than 7.0%? Check out this smart, modern two-level office building situated only minutes from the Papakura motorway interchange and a short walk through the town centre to the railway station. Well presented, the road front 605m² (approx.) building offers well-lit office space with a mix of open plan and partitioned areas. Including storage to the rear, accessed via a roller door there are 9 car parks on-site, 7 in front and two under cover. New 3+2+2 year lease from 3 January 2020 at $122,000 pa net (+gst) to Integrity Business Solutions Ltd (Payroll & HR Specialists). Don't miss this opportunity, our South Island vendors want it sold! For sale $1,626,000 (+GST) if any (7.50% return). For more information and an appointment to view please contact the Sole agent. To download the property file please paste this link into your browser: http://www.propertyfiles.co.nz/property/NSC29924