Strong interest and record prices are being achieved throughout the commercial property markets around New Zealand, but some market segments are lagging, NAI Harcourts’ Commercial has reported in its third Key Assets publication for the year.
NAI Harcourts New Zealand general manager Tony Kidd says historically low interest and deposit rates, combined with reduced supply of investment stock, a shortage of appropriately zoned development and an increase in construction costs are contributing to the strong general state of the sector.
However, he says it is important to recognize that not all market segments are experiencing strong growth and prices. “An example is the tourism sector that has generally experienced a drop in asset values over the last 12-24 months, with revenue per available room being down on previous years,” he says.
“It’s clear, though, that investments with strong lease covenants, good build quality and strong locational factors are highly sought after and achieving strong demand and prices.”
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This issue of Key Assets features 25 properties that are mainly located in Auckland but also cover Hamilton, Napier, Christchurch, and Gore in Southland. Sixteen are for sale, with the remainder providing excellent lease opportunities.
A cross selection of properties from the portfolio include several new industrial developments, all under construction:
-Units in 35 Peters Way in Silverdale for lease by Rene Geertshuis and Geoff Thomas, with three out of the four units remaining available
-Two lots in Hobsonville - Lot 7/96 Hobsonville Rd and Lot 88 Hobsonville Rd – marketed for sale by Dan Lemkus and Marty van Barneveld, offering brand-new industrial units (four in one and 15 in the other complex). Ideally suitable for a range of investors and owner occupiers, situated within north Auckland’s premier industrial location
-In Hamilton, similar developments are on offer in Brent Greig Lane, Te Rapa by Theo de Leeuw, where he has 15 off-the-plan units for sale with a twist, offering both live and work industrial options
-Theo De Leeuw and Debbie Ricketts are also marketing an industrial park in Quail Place, Frankton in Hamilton. This investment opportunity has 13 tenancies and is returning $356,660 per annum plus GST (approx) and offers a multitude of options. There is a sizable industrial land holding of 2.0942ha
-Shannon Caldwell and Matt Webb from our Napier/Hastings offices are marketing a multi-unit investment (12 units) on two freehold titles, located on Hospital Hill in Napier. Annual gross income is $186,160 per annum, with various options and considerable upside. This property will be sold by tender, closing 19 August 2021
-Craig Edwards and Brian Davey in Christchurch have three separate unit title light industrial buildings for sale that are going to auction on 12 August 2021. These modern industrial buildings are on varied lease terms and located in the Southbank Industrial Park.
-In Gore, lifestyle awaits along with an opportunity to purchase a family-owned café / restaurant business that has been trading since 1997. This property has an asking price of $395,000 plus GST (if any).
From a leasing perspective, the team has some excellent opportunities in both Auckland and Christchurch:
-Dave Lane has a modern office suite at 3B/51 Hurstmere Road in Takapuna for lease, boasting an area of 206sq m plus large deck and excellent sea views
-Rohan Cooke also has numerous modern office / industrial spaces in Avondale, East Tamaki, Mt Wellington, and Penrose
-In Christchurch, Paul Middleditch has office space to lease in the ‘Grade A’ Deloitte’s building in the heart of the CBD, as well as 1250sq m of high-grade office space with ample car parking at 175 Roydvale Place in the prominent Burnside Business Park.
One of the many benefits that NAI Harcourts offers is a nationwide network of sales and leasing consultants that are each an expert in their market and offer reliable and trustworthy advice to their clients. “Readers Digest thinks so highly of our parent brand Harcourts Group that we have been awarded for the ninth consecutive year the most trusted real estate brand, a true testament to the quality of our nationwide team,” Kidd says.
- Article supplied by NAI Harcourts
