As the office sector in New Zealand continues to flex and adapt to changing working models, one compelling trend is the 'flight to quality' as businesses look to provide optimal workspaces for teams returning to the physical office after years of disrupted working.
There is robust demand for premium buildings in good locations in the main centres, with those landlords prepared to work closely with tenants to provide workable options and to improve on-site amenity reaping the rewards.
A part-occupied A-grade office asset in central Lower Hutt has been placed on the market for sale with opportunity for both astute owner-occupiers looking to reposition themselves with security around long-term tenure, or investors seeking a quality building with rental upside.
The building at 134 Queens Drive, close to the intersection with main arterials High Street and Kings Crescent, was fully refurbished last year including a new roof, recladding, and strengthening to 100 percent NBS with an extensive, updated modern fit-out.
Start your property search
With its striking curtain wall façade, the property dominates the high-profile 713sqm site, with agents saying it now provides the newest and highest standard of contemporary office accommodation in the city.
The three-level 1,284 sqm building is zoned Central Commercial and has 12 on-site car parks.
The tenants on the ground floor are Jordan Financial Planning Limited and Tradestaff Group Limited, while the two upper levels are currently vacant.
The property has an assessed potential net rental of circa-$440,000 plus GST once fully-occupied, and is being sold by tender closing Wednesday 28 September, through Ethan Hourigan and Andrew Smith of Bayleys Wellington Commercial.
Hourigan said recent sales show there is investor and owner-occupier demand for office property in Lower Hutt’s CBD, and the shortage of A-grade stock amplifies the appeal of the Queens Drive property – particularly given the RiverLink infrastructural upgrades confirmed for this end of the city.
“This northern periphery of Lower Hutt CBD will soon form the city’s main gateway with the relocation of the Melling Bridge and the approved new Melling interchange,” he said.
“We understand that the new overbridge and river bridge will connect directly to Queens Drive, making this building a standout for visibility and branding potential.
“Equally, the building’s proximity to public transport networks and car parking, Queensgate shopping centre and other CBD amenities means it has tangible value for business owners looking to attract and retain staff as ‘return to the office’ momentum builds post-pandemic.”
Hourigan said an owner-occupier could acquire this property and use one or two floors for their own business, and continue to get a return from the ground floor tenancies.
“We’re finding that there is a lot of capital in the marketplace currently, with investors on the hunt for prime assets and well-resourced owner-occupiers seeing value in securing their own property.
“The Queens Drive subject property has the advantage of existing income from two well-established tenants that have committed to leases recently for ground floor space until 2026 and 2028, with one having rights of renewal.
“With the two vacant upper levels of 514sqm and 517sqm now freshly refurbished ready for occupation, and with proactive businesses scoping out well-located space, there’s the opportunity for an investor to fill the tenancies or for an owner to occupy.”
RiverLink is the largest infrastructure project in Hutt Valley’s history. The project aims to “turn” Lower Hutt City to face and connect with the Hutt River, with construction on a new Melling interchange – including a relocated train station, and new vehicle and walking and cycling bridges – expected to begin next year.
- Article supplied by Bayleys
