Auckland’s commercial property market has had its fair share of challenges over the past few years. However, with the easing of Covid-19
restrictions and the long-awaited reopening of New Zealand’s international borders, it’s expected that the region’s economy will receive a significant boost.
As such, 2022 is shaping up to be an exciting year for property with some outstanding opportunities in the wings, according to John Urlich, commercial manager of Barfoot & Thompson.
Writing in the agency’s newly-released Insite portfolio, Urlich says: “As always, times of adjustment must be considered carefully with perspective being a necessary prerequisite to investing.
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“Situational aspects like we have at present are dynamic and change with time and in both New Zealand and globally, property serves as a consistent hedge against inflation with compounding capital gains.
“All in all, our outlook for the market is positive.”
Around 33 properties are showcased in the Insite portfolio’s May 2022 edition from central Auckland south to Port Waikato.
They include seven properties for tender, three for auction, 12 for sale by deadline private treaty and 11 for sale by negotiation.
-One of the featured commercial properties is an impressive office tower located in central Takapuna.
Known as BDO Tower, this one-of-a-kind asset presents an outstanding opportunity to own prime real estate in a high-profile position in the heart of Takapuna’s flourishing business precinct.
“A rare find,” says Elaine Tutty, of Barfoot & Thompson North Shore Commercial, “given that properties of this scale are seldom available in this tightly-held location.”
Together with colleague Bruce Jiao, Tutty is marketing 62-64 Anzac St, Takapuna, for sale by tender closing at 4pm, Thursday 26 May unless it sells earlier.
“The site is held in one freehold title on about 2155sq m of land and comprises a medium to high-rise development of two freestanding office buildings of four and 13 levels respectively, including a ground-floor cafe and three levels of car parking,” Tutty says.
Built in 1989, it carries a strong seismic rating and is solidly constructed, largely from concrete.
The top floors enjoy spectacular views to the city, Rangitoto and Lake Pupuke.
The location is excellent — strategically positioned next door to Shore City Mall and featuring two road frontages to Anzac St and to Como St.
“The tower has a potential net income of circa $3,000,000 plus GST per annum, split between 30 tenancies. The multiple tenancies offer a high standard of office accommodation (some of the best in Central Takapuna) with current tenants including the Government agency Child Youth & Family and household names like BDO and Lumino the Dentists.”
Tutty adds Takapuna is growing in popularity with both local and international businesses looking to provide commuting convenience for staff and clients.
“However, the lack of new supply and continued demand has seen a steady increase in office rates here over the past five years.
“In addition, this popular beachside suburb is one of the key metropolitan centres identified in the Auckland Plan as a priority for growth and development, meaning this landmark Takapuna holding provides an excellent opportunity to capitalise on assured future growth.”
-Moving from the North Shore to West Auckland, the portfolio highlights a prominent 3496sq m standalone building, with a massive corner profile to busy Great North Rd.
Known by locals as the Great North Centre, this property has been held by an offshore family trust for over 25 years.
It offers strategic and add-value investors a unique chance to secure a high-profile location in the heart of West Auckland's thriving business hub.
333 Great North Rd, Henderson, is being marketed by Barfoot & Thompson Commercial brokers Max McCarthy and Reese Barragar for sale by tender closing at 2pm, Thursday 2 June unless sold prior.
“This asset sits on an outstanding 2076sq m freehold land parcel,” says McCarthy. “The building itself boasts a total floor area of 3496sq m. It has 44 onsite carparks and is fully leased, primarily by Government tenants, returning $604,000 net a year.
“The roadfront location and corner profile offers good natural light to the interior,” he says, “as well the opportunity for prominent signage that capitalises on the enormous daily passing traffic count.”
Zoned Business–Metropolitan Centre with a maximum height of 72.5m, the property allows for a wide range of activities including commercial, leisure, high density residential, tourist, cultural, community and civic services.
“This is a big fringe standalone investment with major upside,” McCarthy says, “where you get to enjoy the passive cashflow and explore the add-value angles to increase your return. Developers know this location is earmarked for extensive growth and intensification, and realise that it’s particularly hard to beat in terms of local amenities together with accessibility to the city centre and surrounding suburbs.”
-Another opportunity for the astute purchaser sits in Newton on Auckland’s city fringe.
4 Ophir St is for sale by deadline private treaty closing at 4pm, Wednesday 25 May unless sold prior, which is being marketed by Murray Tomlinson and Sue de Jong of Barfoot & Thompson Commercial.
This is a standard office and warehouse constructed in 1983. Originally it would have been intended to meet the needs of service and distribution businesses wanting a central location; however this type of property is now typically converted to showrooms, workrooms, offices and residential accommodation.
“Renovated in 2000 and then again in 2011, the building presently is warehouse and amenity on the ground and offices on the first floor,” says Tomlinson.
“At 615sq m the land is a good size with no registrations on the title and the structure, with a 141 per cent NBS seismic rating, will keep a financier happy.”
Tomlinson says properties such as this are getting harder to find — located five minutes from Ponsonby, five to the city centre, five to Kingsland/Morningside and a quick five-minute walk to the City Rail Link station on Mercury Lane.
“There is also the extra bonus of six carparks onsite, and the owner-occupier will vacate prior to the settlement date, therefore we have clear vacant possession.”
— Article supplied by Barfoot & Thompson
