Auckland’s commercial property market has faced a challenging year that few will forget, but there are certainly some opportunities, says John Urlich, commercial manager of Barfoot and Thompson.
Writing in the foreword of the agency’s newly-released Insite portfolio, Urlich says: “As we saw in 2008, opportunities present themselves to those that remain active. Counter cyclical positions and higher and better uses for property always present themselves.
“Most advisors are questioning what makes for a good investment at this time and the recent boom in refurbishment activity is providing clues,” he says.
“In a low interest rate environment, it pays to add value.”
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About 37 properties are displayed within the final Barfoot and Thompson Insite portfolio for 2020, from East Tamaki to Kerikeri including four properties for tender, four for auction and five for sale by deadline private treaty.
One of the featured commercial properties is a property in Northcote, on Auckland's North Shore.
This property presents an opportunity to own industrial real estate within a tightly held location, says Sharee Aitken of Barfoot and Thompson North Shore Commercial.
With colleague, Kurt Piper of Barfoot and Thompson Devonport, Aitken is marketing 35 Woodside Avenue, Northcote, for sale by tender closing at 4pm on Tuesday November 10 – unless it sells earlier.
“The site is held in one freehold title on about 1,005sqm of land and includes a two level building,” Aitken says. “The property comprises a mixture of live/work accommodation and work/storage with a total net floor area of around 703sqm and eight car parks.”
The property will be sold with vacant possession and is currently owner-occupied with space being used as a gallery/showroom and workshop.
“Having experience in leasing throughout the area, live/work situations are in high demand. Equally, the demand is high for a light industrial commercial operator," says Aitken.
“This location is mostly suburban living with a condensed block of light industrial and commercial activity. There is a diverse range of local amenities and the site is conveniently located in close proximity to the Auckland CBD and major arterial routes.”
Piper says that the building was constructed in the mid-1960s and has a mix of steel portal frames, concrete framing elements, timber flooring and a light roof. “The internal space is well-maintained having been divided into two versatile live/work areas measuring approximately 329sqm on the ground floor and 348sq m on the basement level.
“Improvements to the rear include a balcony measuring approximately 26sqm with an easterly aspect giving a great sense of indoor/outdoor flow. The main area on the upper level is an open plan New York-style loft with a modern kitchen, and living space centralised around a wood fire.
“The Light Industrial-zoned, rectangular site has an 18-metre frontage to Woodside Avenue and approximately 58 metre depth to the rear of the site. This property will be suitable for a range of businesses from commercial services or offices, hospitality, retail/showroom activity or live/work accommodation.”
Across the harbour, are two strata office units on individual titles for sale on O’Connell Street in Auckland Central.
Units 1A and 1B, 12 O’Connell Street, Auckland. Photo / Supplied
“The units are located on level one of a six level office building that underwent extensive refurbishment,” says broker John Stringer, who along with colleague Wayne Muir, is marketing Units 1A and 1B, 12 O’Connell Street, for sale by tender closing at 2pm on Thursday, November 5th unless it’s sold prior.
“The building is located on the eastern side of O’Connell Street and presents very well, with tiled entry floors and automatic glazed entrance doors. The entrance is via a small retail arcade which provides a link between Vulcan Lane and the AIG building."
Stringer says that units 1A and 1B are approximately 137sqm and 323sqm respectively, including common areas such as bathroom facilities and foyer space. “The building, constructed in the mid-1980s, is located in the core of Auckland’s CBD and is very popular with professional office users due to its proximity to Queen Street and Shortland Street,” he says.
“O'Connell Street comprises a mixture of properties, from older style low rise buildings to more recent office developments,” says Muir. “Neighbouring tenants to the subject property include investment bankers, financiers, lawyers, accountants and other professional office users who appreciate the proximity to supplementary businesses and the associated cafes, bars and restaurants."
Stringer adds: “The units currently return a total gross annual income of $137,880 with one vacancy and can be purchased separately or together. This is a perfect opportunity for owner-occupiers or investors to take advantage of the historically low interest rates.”
8-10 Dundonald Street, in Eden Terrace, Auckland. Photo / Supplied
Also for sale by tender, closing at 4pm on Wednesday, November 11, is 8-10 Dundonald Street, in Eden Terrace. It is being marketed by Murray Tomlinson and Sue de Jong.
“This two-level building has excellent development fundamentals whilst at the same time offering owner-occupiers office, workroom and storage options,” Tomlinson says.
“The property was originally constructed in the 1960s so if an owner is prepared to pare it back to the base structure, it offers that so hard to find nowadays, industrial character.”
He says that the freehold property has a total net lettable building area of 698sqm occupying 658sqm of land. “The structure and age of the building provide for a good level of accommodation for the medium term, whilst the location and zoning suggest the site is an appropriate residential development target for the future.
“The ground floor office tenancy of 308sqm is currently vacant and comprises office/workroom space with moderate stud height. The slightly larger area of 390sqm on the upper level has precast concrete inter-floor with workroom / offices and is leased to Broadcast Map returning an annual income of $110,750 plus GST. There is also the added bonus of 10-12 stacked car parks on site.”
De Jong says the rectangular site, held on one title, has a frontage of approximately 20 metres and lies north-east to south-west on the eastern side of the street. “Dundonald Street is tucked behind the Symonds Street and Newton Road intersection and is in close proximity to several major arterials,” she says.
“Public transport is available on Symonds Street and the future City Rail Link - Mt Eden Station will be a matter of five minutes’ walk.
“Zoned Business – Town Centre, the property allows for a wide range of activities including commercial, leisure, residential, tourist, cultural, community and civic services and allows for a building height of up to 18 metres."
Tomlinson adds: “This is a super central location and has been the target of some of the most intensive residential accommodation development in the City fringe over the last decade. Developers and apartment buyers realise that the location is particularly hard to beat in offering local amenities together with accessibility to the central city and surrounding suburbs.”
