Blue-chip tenant in Penrose
A prominent commercial building in the sought-after industrial location of Penrose, Auckland, that is home to a blue-chip tenant signed to a long-term lease, will appeal to purchasers seeking to acquire a premium asset with a steady rental stream.
952 Great South Rd is a two-storey building tenanted by telecommunications company One NZ, formerly known as Vodafone.
With 1770sq m of total floor area on a
2211sq m freehold site zoned Business–Heavy Industry under the Auckland Unitary Plan, the high-profile property enjoys plenty of road exposure on a major arterial route that has more than 18,000 vehicles passing each day. The A-grade seismic rating is another tick in the box, while there are 44 dedicated carparks.
One NZ’s current 20-year lease runs until
2038 and there is one 10-year right of renewal leading to a final expiry of 2048. The annual rental income is $372,710 plus GST and operating expenses. There are 2 per cent annual rental increases and a market review scheduled for 2028.
The zoning provides for industrial activities that may produce objectionable odour, dust, and noise emissions. Air quality emissions standards that are different to the rest of Auckland will often apply. This zoning remains particularly appealing among buyers given the flexibility it affords.
Colliers brokers Matthew Barnes and Ronal Prasad are marketing the property for sale via deadline private treaty closing at 4pm on Wednesday, November 1, unless sold prior.
The building incorporates 814sq m of office accommodation and foyer space on the first floor that was refurbished in 2022.
There is a specialised One NZ switch room on the ground level that spans 900sq m. The ground floor foyer is 56sq m.
Barnes says this is a premier offering in exceptional condition and underpinned by the strength of the tenant covenant, which will catch the eye of discerning investors.
“Trophy assets of this quality rarely come to the open market and must be seriously considered by buyers of all kinds,” Barnes says. “The built-in rental growth with steady annual increases is a desirable selling point for prospective purchasers, while a future market review could provide further rental growth for the new owner.”
Penrose has long been a sought-after location among landlords, occupiers and investors due to its strategic positioning that offers access to key transport links such as the Auckland motorway network, train lines, inland ports and Auckland Airport.
Vacancy rates for industrial floorspace in Auckland remains stubbornly low with an overall vacancy rate of 1.7 per cent, according to research from Colliers. Prime industrial space in the Onehunga and Penrose precinct has a vacancy rate of 0.5 per cent, a figure that is even lower in surrounding suburbs Mt Wellington and East Ta¯maki.
Prasad says there has been significant commercial, retail and residential development nearby that has enhanced the overall quality of the area.
“The subject property is located near some well-known occupiers such as Fletcher Living, the Placemakers head office and Hirepool, among others, solidifying the topquality nature of the area as a location for businesses to operate from,” he says.