Commercial property sector healthy: Harcourts’ first portfolio for 2018
Strong fundamentals, such as low vacancies and strong yields, are helping to keep commercial property markets healthy in the country’s urban areas, says NAI Harcourts general manager Tony Kidd
In introducing Harcourts’ first Key Assets commercial property portfolio for 2018, Kidd noted suburban commercial buildings and prime industrial remain in high demand across Auckland, Hamilton, Wellington and Christchurch.
“And in Northland, commercial investment properties with good tenants in Whangarei, Kerikeri and Waipapa are producing yields of 7 to 9 per cent.” Kidd added.
Harcourts Whangarei sales consultant Peter Peeters explained that since the election there has been substantial more interest in Marsden Pt and Waipapa, where a strong supply of development land exists.
“The success of the Ruakaka area has never been in doubt as it has New Zealand’s only oil refinery along with a naturally deep harbour and a large, sheltered bay for ships waiting to enter port. How fast it develops will largely depend on government action around infrastructure, and the ability of Northland MPs to promote the need for these critical works to be completed in a timely manner.”
Properties on the Harcourts key assets list include:
● 1 Corban Ave, Henderson A one-year-old service station site leased long-term to Z Energy. This facility sits on 22028sq m, with a purpose-built retail store of 228sq m. The high-profile corner site is managed by the tenant and earns $324,371 net. Rental growth is built in with annual CPI reviews (the next is due in June) and 10-yearly market reviews. Z Energy is a year in to a 21-year tenancy. This represents a secure, hands-off investment. The property being marketed by Steve Granger at Harcourts’ North Shore Commercial is being sold by a tender process, closing March 22.
● 37-39 Omega St, Albany “This is a rare, highly sought-after warehouse/office site in the heart of industrial Albany, available for lease,” says Kidd. The 4190sq m site offers full B-train drive around access, with three roller doors and six loading docks, as well as a large yard suitable for container drops. The site also includes a high-stud 1546sq m warehouse and 95sq m of office space with
35 car parks. “The site is also near access to both SH1 and SH16 and is suitable for a range of business options. Expressions of interest to lease close March 30, unless leased prior. It is being marketed by Marty van Barneveld and Peta Laery, of Harcourts North Shore Commercial.
● 26 Bryce St, Hamilton “This a fully-leased office/retail building in the heart of Hamilton CBD, now returns $304,690pa net. Situated on the northern side of Bryce St between Barton and Victoria Streets, the property sits directly opposite Centre Place Mall and Lido Cinema,” says Kidd. The area has retail and service businesses with near neighbours including ANZ, SBS and, in the near future, ASB. Bryce St dining lane is opposite. Kidd says the building has 1919sq m of lettable area on land of 1035sq m, with 13 car parks. It has an A Grade seismic rating, strengthened to 82 per cent NBS and has been modernised and upgraded.