Auckland on the move again

Entering the second half of 2022, with Aucklanders returning to workplaces and international borders open, the region’s economy is on the move.

As a result, there have been some significant shifts in the Auckland commercial property market, with some “truly excellent opportunities arising” according to John Urlich, commercial manager of Barfoot & Thompson, which has just released its second Insite Porfolio for 2022.

Urlich says we have seen this market before, and he maintains it is a good time to consider how to both finance and purchase a counter-cyclical position.

“The market is interesting. Whatever the world’s central banks do to reduce inflation, I sincerely doubt that we will see much downward pressure on commercial rental levels in Auckland,” he says.

“Like those investors in the GFC of 2008-2010, I see astute purchasers being active. Recovery on the back of inflation is going to create increased equity in the forthcoming years on the positions which people take today.”

The new portfolio showcases around 30 commercial properties from Albany to Drury, including two for tender, four for auction and six for sale by deadline private treaty.

-A highlight, described as “Grey Lynn Gold”, can be found at 4 Bond St. Barfoot & Thompson commercial broker Ben Jamieson, who is marketing the property, says commercial properties of this scale and quality rarely come to market in such a tightly-held CBD fringe location.

Given the Mixed-Use zoning and massive development potential, he says this property will appeal to investors, owner-occupiers and developers.

It is for sale by deadline private treaty, closing 2pm, Thursday 4 August, unless sold prior.

“Constructed in the 1970s,” says Jamieson, “this exceptional asset has recently been upgraded and refurbished, has a net lettable area of 1295sq m and currently provides a mixture of office, showroom and warehouse spaces with dual roller door access and 21 on-site carparks.

“The 1628sq m site has dual road access from Bond St and Dean St and is expected to benefit from rezoning under the National Policy Statement on Urban Design.

“This will allow at least six storeys of development being permitted, offering huge future potential. Minutes from Ponsonby, with seamless access to the motorway and public transport, the benefits are clear.

-In Wairau Valley, 23 Ashfield Rd is an exceptional freehold asset divided into four separate industrial warehouse units in the heart of one of Auckland’s most popular industrial zones.

“Investors seeking a solid return in a tightly-held area would be wise to look at this one,” says Simon Farland of Barfoot & Thompson North Shore Commercial. With colleague John Stringer, he is marketing the property for sale by auction on Thursday 4 August, unless sold prior.

“It is an outstanding 1468sq m freehold land parcel, with three of the four units featuring mezzanines, and having a floor area of approximately 654sq m,” Farland says. “The units are fully leased, with the four tenancies returning $147,575 annually plus GST and outgoings.

Stringer says the property occupies a roadfront position with off-street parking.

“It’s in a convenient location not far from Tristram Ave and the northern motorway interchange, close to public transport routes and the Wairau Valley commercial precinct, and neighbouring many residential catchments in an area with very low vacancy.”

The property was constructed in the 1980s, with the structure largely comprising solid concrete block and slab, aluminium joinery and a pressed steel roof.

“Zoned Business—Light Industry, the possibilities here are considerable,” Farland says.

-For sale by mortgagee auction on Wednesday 3 August, unless sold prior, 3 Park Ave in Grafton is being marketed by Wayne Muir and John Stringer of Barfoot & Thompson Commercial.

“This is a very exciting prospect,” says Muir, “given the property’s development potential and the outstanding location.

“It’s close to the CBD, major education institutions, Auckland Grammar, hospitals, public transport options, and the Auckland Domain.”

Currently there’s a two-level residential building on the site. This dates back to 1900 and is configured into nine self-contained flats, with six of these generating an annual income of around $140,000 gross and two more under renovation.

“The 771sq m site, held in a freehold title and zoned Mixed Housing Suburban, is a redevelopment option,” Stringer says, “especially considering that the National Policy Statement of Urban Design may allow buildings up to six levels, subject to council approval. It’s definitely a drawcard for investors, developers and land bankers.”

-In Onehunga, 6M Henderson Place is a 717 sq m roadfront industrial building with superb street appeal in a high-profile location.

Marketed by Barfoot & Thompson industrial brokers James Marshall and Nick Wilson, it is for sale by deadline private treaty closing 12pm, 26 July, unless sold prior.

“The building is part of a 13-unit complex that was constructed in the 1980s,” says Marshall. “It includes a good, functional warehouse with ample office space and amenities, mezzanine storage and the bonus of 11 carparks.”

It’s currently leased to a single tenant, drawing a net annual rental of just over $100,000 plus GST.

Sitting on Heavy Industry-zoned land in the heart of Onehunga, the property is accessed from both Henderson Place and a secondary lane off of Mays Rd.

This location is one of Auckland’s busiest and most sought-after industrial hubs, due to its central positioning and easy access to the motorway network.

“It’s a super prospect,” Marshall says, “as investors know this location is popular, and particularly hard to beat in terms of local amenities, growth potential and convenience.”

— Article supplied by Barfoot & Thompson