‘Embrace opportunity’ in face of market upswing

Heading into the second half of 2023, Auckland’s commercial property market appears to be showing signs of enhanced activity, with an upswing in occupancy rates, boosted inquiry levels and renewed investor interest.

“We are still in a transitional period,” Barfoot & Thompson commercial manager John Urlich says. “However, now could be the time to ‘embrace opportunity'.”

Around 42 commercial properties are showcased in the August 2023 edition of the company's Insite portfolio, from Whangārei to Drury. They include three properties for tender, three for auction, eight for sale by deadline private treaty and five with an asking price.

One of the highlights of the portfolio is Unit F, 1 Porters Ave, Eden Terrace. It's rare for properties of this calibre to come to market in such a tightly-held CBD fringe location and, given the road-front visibility of the building and the versatility of its layout, it’s likely to appeal to savvy investors and owner-occupiers, agents say.

Constructed in the 1980s and part of a development known as Ambury Court, this freehold unit covers a floor area of approximately 495sq m and features a mix of office, workroom and warehouse spaces plus amenities over two levels. It also comes with the bonus of seven on-site carparks.

The property is being marketed by Barfoot & Thompson Commercial brokers Murray Tomlinson and Sue de Jong, and is for sale by tender closing at 2pm, Wednesday August 16 unless sold prior.

“The unit in a good solid state as it is,” Tomlinson says, “but also presents plenty of scope, should the new owner seek to rationalise the space and redecorate to achieve a significant lift in image.”

The property is available with vacant possession, providing a perfect chance for an owner-occupier to move in and make it their own. Alternatively, there is the possibility of retaining a first-floor office tenant, which has been done in the past.

"It's a top of the town location,” Tomlinson says, “right on the intersection of Dominion and New North roads, just a few kilometres from the CBD and perfectly positioned with easy access to the City Rail Link Maungawhau (formerly Mt Eden) station.

“Given the proximity to the motorway network and all the main public transport routes, the property's benefits are evident, making it a highly sought-after opportunity.”

Tomlinson is also presenting another compelling opportunity, alongside colleague Nick Bernecker, at 5 and 7 Severn St, Grafton.

He says the two buildings “ooze character and charm” and have been held by the same family owners dating back to the 1960s.

The freehold titles are available for sale as one lot or separately, provided both can be sold unconditionally at the same time.

Tenders close at 2pm, Thursday August 17 unless sold prior.

Both buildings will be available with vacant possession, or No. 7 could retain its ground-floor tenant, who has been in residence for 20 years.

No. 5 comprises 288sq m, with brick walls throughout the structure, making it an excellent candidate for conversion into modern character offices.

No. 7, covering 766sq m over two full floors, is also suitable for a complete office conversion. The top floor has a full wooden floor and the ground floor is based on concrete and block.

There are 16 carparks across both sites.

Tomlinson says, “The end-game could be a full residential apartment development of the 1054sq m landholding, which is an exciting prospect for investors who are familiar with the area's appeal, which includes excellent public transport links and close proximity to Auckland Hospital, Auckland Domain, CBD and universities.”

In Onehunga, 55 Church St is another opportunity for the astute purchaser.

For sale by deadline private treaty closing at noon, Wednesday August 23 unless sold prior, the property is being marketed by Barfoot & Thompson Industrial brokers James Marshall and Nick Wilson.

This is a 535sq m freehold site with a 405sq m high-stud warehouse featuring dual roller door access and ample parking out front.

Marshall says the structure was built in the 1970s, comprising solid concrete block walls, concrete floors, a long-run iron roof and aluminium joinery.

“The current tenant provides an annual passing income of $64,000 plus GST and has recently renewed to March 2026,” he says.

“Given the superb road frontage, excellent visibility and prime positioning of the property, there’s little doubt it will always be popular to lease.

“Sitting on Business-Mixed Use zone land in the heart of Onehunga, the location couldn’t be better. It’s just 600m from the SH20 on- and off-ramps, located right between the Auckland CBD and Auckland International Airport. It's particularly hard to beat in terms of local amenities, growth potential and convenience.”

— Article supplied by Barfoot & Thompson