Launching its third and final Insite magazine for 2021, Barfoot & Thompson is underlining optimism about the outlook for Auckland’s commercial property market.
John Urlich, commercial manager of the company’s city commercial branch, notes that the portfolio is
released during the Government’s Level 3 Covid-19
restrictions. “The reality is that we are in fast-changing times. And times do and will change,” he says.
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“A long-term perspective remains essential to successful investing and fortunes will always favour those prudent investors who consider investment fundamentals. With close to 100 years to reflect on, our firm holds strongly to this view.”
Urlich says New Zealand is likely to follow global economies that have already been required to adapt to living with the pandemic. “Nobody could have foreseen the challenges that faced us, but 18 months on from our first lockdown we can see that investor sentiment is buoyant and confidence abounds that both our lives and economy must go forward.
“This sentiment occurs whilst a global recovery is progressing steadily, and the threat of inflation at comparatively low interest rates makes commercial property an effective hedge to the likely economic environment we may face in the medium term,” he says.
“We are truly optimistic about the outlook for Auckland property. We see that the fundamental drivers of the residential and commercial sectors of the property market remain challenged in the Auckland area. Our small isthmus is finite and the value of the landholding of existing commercial property remains underpinned by this fact.”
Urlich notes that sales and leasing activity has been pronounced. Land and industrial property remain highly sought-after; equally leasing of commercial office space is also active with expansion and downsizing occurring in equal proportions.
“While the retail market and the CBD location have had to face the challenges that have been typical globally, we have seen some astute purchases in these asset classes in recent times. Seasoned investors have been active.”
The Insite portfolio includes 30 properties. Eight are for sale by auction, four for tender, four with an asking price, six for sale by deadline private treaty and eight for sale by negotiation.
One of the more unusual – with an excellent opportunity for passive income and potential for redevelopment – is a home that became a castle in Auckland’s growing West Harbour suburb.
Overlooking the harbour and looking towards the Auckland CBD, 5 Luckens Rd is a daycare facility sitting on 1250sq m of land zoned Mixed Housing Urban.
The freehold property has had a daycare operating from the site for many years and currently has a long-term lease to Happy Kiddy Castle Early Learning.
James Marshall of Barfoot & Thompson’s industrial sales and leasing division and Mark Leaver of the residential sales team are auctioning the property at 10am on 10 November, unless sold prior, at 34 Shortland St, Auckland CBD.
They say the building has two levels with a third being a castle turret following an extensive refurbishment and extension in the 1990s.
“This is an absolute prime opportunity to get a commercial investment on a large residentially zoned parcel of land.”
The freehold property occupies 1250sq m of land and has approximately 262sq m of net lettable area with 12 carparks. The flat, irregularly shaped property has a 27m frontage to Luckens Rd and has separate entry and exit points.
Happy Kiddy Castle Early Learning is the sole tenant, with the property currently generating a net income of $102,515 plus GST and outgoings. The tenancy began in 2018 with a final expiry of 2043, with three rights of
renewal, each of five years. Market rent reviews are held every six years from commencement, with CPI reviews annually at CPI or 15 per cent, whichever is the greater.
Marshall and industrial sales and leasing colleague Max McCarthy are marketing a rarely available industrial property in Glendene, West Auckland.
The 1011sq m freehold property at 23 Bancroft Crescent is situated in the suburb's premier industrial precinct.
“The location has grown in popularity in recent years, with many businesses attracted to the Heavy Industry zoning and proximity to the North-Western motorway via Te Atatu Rd,” the agents say.
“Glendene has long been one of West Auckland's tightest-held business hubs, with close proximity to the neighbouring suburbs of Glendene, Te Atatu South, Sunnyvale, Glen Eden, Henderson, and New Lynn. This location has been positively impacted by the significant infrastructure projects such as the Waterview Connection.”
Improvements consist of a 110sq m clear span warehouse, built in 1997, that is home to Arcadia Steel Ltd, specialising in steel fabrication for residential and commercial projects.
The site provides a passing rental of $53,500 plus GST and outgoings per annum. The lease commenced on 1 June 2021 on a 2x2 year term with built-in fixed rental growth of 2 per cent per annum plus a market rent review on date 1 June 2023. The final expiry of the lease is 31 May 2025.
23 Bancroft Crescent is also to be auctioned at 10am on 10 November in the company’s Shortland St premises, unless sold prior.
Birkenhead town centre has recently undergone an extensive makeover, and Agnes Teh and Melissa He from Barfoot & Thompson’s commercial sales team are marketing a superb two-storey retail building on the re-energised main street.
60-62 Mokoia Rd consists of three tenancies, two with excellent street profile.
Total annual rent is currently $135,130.77 plus GST and outgoings from the three separate tenants, providing a split risk investment opportunity.
The freehold property sits on 405sq m of land with a lettable area of 744sq m, and is zoned Business Town Centre.
The building was constructed circa 1972. On the ground floor with frontage to Mokoia Rd is a newly signed-up Home Mart and a 24-hour self-service laundromat, set up in 2015. Fight Culture, operates as a martial arts gym, has occupied the large basement since 2011.
Three car spaces at the rear of the building are used at Fight Culture's discretion. The rear of the property is bounded by a service lane and public carparks, accessed from Rawene Rd.
60-62 Mokoia Rd will be auctioned at 10am on Wednesday 17 November, unless sold prior, at Barfoot & Thompson’s Shortland St offices.
— Article supplied by Barfoot & Thompson
