Options abound in Newmarket

By Colin Taylor

City-fringe building would suit developers or owner-occupiers.

The Leek St property generates net annual rental income of $61,900. Photo / Supplied
The Leek St property generates net annual rental income of $61,900. Photo / Supplied

A Newmarket standalone warehouse and office building, occupied by a longstanding tenant and ideally suited to an owner-occupier, is due to be auctioned next Wednesday.

The 405sq m building on mixed-use land, at 8 Leek St, is being marketed by Charlie Oscroft and Peter Kermode of Colliers International and will go under the hammer as part of the agency's end of year gala auction, at 11am on December 12 at 151 Queen St, Auckland, unless it is sold beforehand.

Oscroft says marketing agency Below the Line has occupied the property for 15 years and holds a lease expiring in next March. The property generates net annual rental income of $61,900.

"This is a functional, two-level building on a 379sq m site, incorporating a clear-span warehouse and well-presented office areas," Oscroft says. "In addition it offers great flexibility to a new owner. The excellent location in the heart of Newmarket's commercial zone, close to Broadway, means the property makes an ideal commercial investment, with the potential to increase the current rental.

Demand from occupiers for property in city-fringe locations indicates this property would be easily re-let."

John Bowring, Colliers International's national auction manager, says there has been marked increase in the popularity of small, city-fringe properties in the auction room this year.

"There is no shortage of demand for compact commercial buildings in good locations from owner-occupiers, investors and developers, and I expect this property to attract a lot of interest from buyers on auction day."

Oscroft says the building would equally suit owner-occupiers such as a small business looking to own its premises. "With renewed interest from small to medium-sized industrial businesses in buying their own premises, we are seeing a definite trend for businesses to take this step and secure their future.

"Low interest rates and the willingness of banks to lend has resulted in many small to medium-sized businesses opting to become owner occupiers."

Kermode says businesses can realise many benefits through owning premises. "They have the ability to modify the property to suit their particular business needs, and have ownership of a capital asset which could be borrowed against to fund future business growth.

"This property also offers significant development potential. Auckland Council Plan change 196 will allow for a building of up to 21 metres in height to be constructed on this site. So we also expect to receive interest from developers and add-value investors looking to maximise the potential of this mixed-use zoned site and its location in a popular, low-vacancy area."

The property is at the Parnell end of Newmarket, surrounded by retail and commercial buildings. The area, which has good access to the State Highway One motorway, is also popular as a residential location and there are apartment and terraced house developments nearby.

Auction specs

On offer: 405sq m warehouse/office building
Where: 8 Leek St, Newmarket
Sales method: By Auction
When: 11am on December 12
Agency: Colliers International.

www.colliers.co.nz/19184

- NZ Herald

© Copyright 2014, APN New Zealand Limited

Assembled by: (static) on red akl_n1 at 01 Aug 2014 08:22:36 Processing Time: 536ms