A combination of reflection during lockdown and record-low interest rates is contributing to new momentum in the commercial property market, with boutique units such as The Headquarters selling like proverbial hotcakes - 50% were signed up during the first week of its marketing campaign.
Situated in Pacific Rise Business Park, in Mount Wellington, moments from the Southern Motorway and alongside prestigious global tenants, including Mercedes Benz and BMW, The Headquarters is a new 54-unit complex, developed by Conrad Properties.
“It isn’t what we had in our minds in February,” says sales director Thomas McAlister. “But rather, it’s a reaction to how the world is now.”
He says that business dynamics have changed completely since the arrival of Covid-19 and the March and April countrywide lockdown.
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The Headquarters - Exterior render image. Photo / Supplied
“On a corporate or multi-national level COVID-19 is a difficult, or in some cases impossible, challenge to handle. But on a local level, small businesses in many instances can react and thrive in the new environment.”
“There are instances where laid-off corporate talent who have good skills are setting themselves up as consultants and looking for somewhere to do that work. We also have a workforce re-evaluating their priorities having had time to think and many are opting to get creative with their career path and start working for themselves or in start-ups.”
He says that record-low interest rates mean depositing money in banks makes little sense, so investors are turning to bricks and mortar. When mixed with a rise in entrepreneurialism this is where the basis for The Headquarters came about.
“Added to that is the fact that new regulations are making the lives of residential landlords harder, so for some investors, attention is now on alternatives.”
The Headquarters - Tech Start Up Interior render image. Photo / Supplied.
The Headquarters will feature a mix of smart, contemporary pre-cast concrete units aimed at both investors and owner-occupiers.
With most priced in the $485,000 to $685,000 range, they’re generally more affordable than investing in a rental home, easier to buy off-the-plan in a hot market and finance is available for unit purchases secured against a New Zealand residential property. Secure on $1,000 down and nothing else to pay until settlement*.
“We’re aiming at a broad variety of potential occupants, including commercial services, healthcare businesses, F&B, warehousing and small manufacturing,” says McAlister.
“We also expect to add value for the existing occupants of the business park because although around 1000 people work in it, there is very little in the way of amenities, apart from a day care centre, and I’m sure that some of The Headquarters units will be taken up by fitness-based businesses, along with various food and beverage providers.”
He says that while ticking boxes is a cliché, The Headquarters genuinely does offer a remarkable location, close to major motorway access points, and an easy 15-minute drive, to or from the CBD and Ports of Auckland.
The Headquarters - Gym interior render image. Photo / Supplied.
Sylvia Park Mall with its 200 + stores and eateries, and Apex Mega Centre are over the road and next door, respectively, and there are regular bus and train services.
Thomas McAlister says while The Headquarters was expected to be popular, the level of its success has still taken Conrad Properties by surprise and although they would like to repeat the concept, a similarly convenient location will be hard, if not impossible to find.
“I’ve looked around and yes, there is commercially zoned land but nowhere else could offer what The Headquarters does which is probably why so many of the units were signed up during their first week on the market.”
He says that some of the interest has come from businesses currently situated elsewhere in the park.
“I think that many companies are going to have fewer staff actually on the floor in future, so they’re looking for smaller premises.”
The development is expected to be completed around the third quarter of 2022 and there’s potential for purchasers to customise their properties with the addition of a mezzanine floor, while each unit has a toilet, shower, and kitchenette in addition to a large glass frontage.
The Headquarters - Aerial shot. Image / Supplied.
Other features include 24-hour security with CCTV and each unit has high-speed fibre internet, along with allocated parking, in addition to plenty of visitor parking.
The surrounding neighbourhood is currently experiencing significant intensification, with a number of new apartment developments, allowing The Headquarters unit owners or occupiers to live as well as work locally.
Pacific Rise is located next to Mutukaroa Hamlins Hill, providing for perfect work/life balance with space for exercise and recreation, dog-friendly walks, 360-degree views of Auckland and its surroundings and picnic tables for casual dining.
McAlister says that in his experience, New Zealanders tend to value real estate investment more than people in many other countries and for an investor looking at the industrial or commercial market for the first time, a unit at The Headquarters will almost certainly perform well and build their confidence.
“At the moment we’re selling two or three a day, so there really isn’t any time for waiting!” he says.
A display suite on the site at 3 Pacific Rise is open daily between 11am and 2pm daily.
Contact agent Alastair Brown
Phone: 021 333 290
*Terms and Conditions apply. Please refer to www.theheadquarters.nz for more information.
This content has been produced in partnership with Conrad Properties.
