Banks have historically been defined by their physical footprints, with a focus on occupying large spaces in prime locations for maximum visibility and ease of access for customers.
In suburban Auckland and townships across New Zealand, bank buildings have traditionally occupied prime corner sites with significant street frontage.
These properties have always been secure investments with long leases and strong tenant covenants. Activity in town centres revolved around these prestigious buildings.
However the landscape has shifted. In the wake of COVID-19 and the digital revolution, financial institutions are rethinking their approach, opting to downsize and prioritise digital technologies and accessibility over number of physical locations.
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This change has created a unique opportunity for owner-occupiers and savvy property investors to capitalise on the potential of former bank buildings in prime locations.
For instance, the former ASB Howick branch, sold by the JLL team in 2021, was converted into a residential real estate office, and a former bank in Birkenhead has undergone a consenting process to transform the first-floor offices into apartments while retaining retail use on the ground floor.
Other examples include former bank buildings now occupied by a national gym chain, a famous bakery and café, a neighbourhood bar, various real estate agencies, character offices, health and medical centres, and even a childcare centre.
These use cases highlight the versatility of prime former bank sites as they evolve to cater to the changing needs of modern communities.
The trend of repurposing former bank buildings is gaining momentum, and the opportunities in New Zealand are abundant.
Associate Directors in the Metropolitan Sales and Investments team at JLL New Zealand, Alex Wefers and Jason Armstrong, recently sold the former ANZ Bank in Onehunga to a value-add investor who successfully transformed it into a thriving hospitality hub with three separate tenancies.
Wefers and Armstrong are currently marketing a similar opportunity at 179 Onehunga Mall, Onehunga. This two-level building, strategically located on the bustling roundabout of Onehunga Mall and Church Street, offers untapped potential and unrivalled exposure.
Situated across from the entrance to Onehunga's DressSmart shopping centre, this standalone property boasts a generous underlying 329 sqm freehold title, three street frontages.
179 Onehunga Mall, Onehunga is currently for sale via Deadline Private Treaty, closing Wednesday 6th March 2024, unless sold prior.
Wefers says the property encompasses approximately 560 sqm of versatile retail and office space spread across two levels, and will attract a range of buyers seeking premises that meet a diverse range of needs.
“With eight basement carparks and Business Town Centre zoning, options abound at 179 Onehunga Mall,” says Wefers.
“Owner-occupiers can customise the space to suit their needs, while value-add investors can unlock hidden value through repositioning and enhancing the property.
"With very low retail vacancy in Onehunga, the building could be split up into two tenancies with traditional ground floor retail and quality offices above.”
Due to the valuable Town Centre zoning, there is the possibility of converting the upper floor into apartments, providing an option for diversified income streams.
Armstrong says this property is poised to be part of Onehunga’s success story as the suburb experiences significant growth.
“Boasting convenient access to the CBD, Auckland International Airport, and major transport arteries, Onehunga has become a sought-after location for businesses and housing,” says Armstrong.
“The area's revitalisation plans, including the DressSmart expansion and regeneration initiatives by Eke Panuku, promise enhancements that will elevate Onehunga as a thriving hub.”
- Supplied by JLL
