Retail unit leased to Specsavers

A high-profile Queen St retail unit in the Auckland CBD, on long-term lease to international brand Specsavers, is for sale by auction.

Colliers International brokers Kris Ongley, Adam White and David Burley are marketing market the 109.27sq m ground floor property at Unit B, 155 Queen St.

The freehold unit — featured in the latest Colliers Portfolio, launched yesterday — will be auctioned on December 13, unless sold earlier.

Ongley says this is a rare opportunity to secure a prime retail investment on the CBD retail stretch.

“Occupying a prestigious location on Queen St, this property has all the makings of an excellent long-term investment,” he says. The unit is occupied by well-known global optometry brand Specsavers, giving it extremely strong tenant covenant. The property is offered for sale at a time when Auckland’s CBD is flourishing, with historically low vacancy rates and strong tenant demand. The CBD remains an outstanding ownership environment, with strong interest from both national and overseas investors.”

Ongley says the unit is on a six-year lease expiring in February 2022. It is currently returning $242,000pa.

“With a rental rate of some $2215 per sq m, there is evidence to suggest the unit is currently under-rented compared to units of similar location and size.”

Rental growth is locked in at 3 per cent a year and reviewed every two years.

“Tenant Specsavers New Zealand Limited is an internationally recognised retailer, with 52 stores in New Zealand alone,” Ongley says.

“Specsavers NZ is part of a global group that comprises 1,845 stores worldwide, selling more than 20 million frames last year.”

Specsavers occupies part of the ground floor of a mixed use high rise building.

“Other tenants include Spark, Kiwibank, restaurant offerings and numerous office tenants.”

The building has an A grade seismic rating of 80 per cent of new building standards.

“Constructed of reinforced concrete slabs and columns, the building provides lifts, sprinkler, fire and security services,” Burley says.

The unit for sale offers glazed frontage to Queen St. It is lined with plasterboard walls and ceilings, into which recessed lighting has been installed.

The property is zoned City Centre under the Auckland Unitary Plan, and is on a stratum in freehold title.