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 rail and roading infrastructure, and the ability of Northland MPs to promote the need for these critical works to be completed in a timely manner," says Peeters.
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 in annual rent. Rental growth is built in with annual Consumer Price Index reviews with the next due in June; and 10-yearly market reviews. Z Energy is a year into a 21-year tenancy. "This represents a secure, hands-off investment," says Steve Granger at Harcourts' North Shore Commercial who is marketing it 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. He adds 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 conveniently located near access to both State Highways 1 and 16 and is suitable for a range of business options from logistics and distribution to light manufacturing or even a children's activity centre. Marty van Barneveld and Peta Laery, of Harcourts North Shore Commercial are marketing the property for lease via expressions of interest closing March 30 unless leased prior to that date.
• 26 Bryce St, Hamilton: "This a fully-leased office and retail building in the heart of Hamilton CBD, now earning $304,690 per annum net," says Kidd. "Situated on the northern side of Bryce St between Barton and Victoria Sts, the property sits directly opposite Centre Place Mall and Lido Cinema. The surrounding area is permanently occupied by retail and service businesses with near neighbours including ANZ, SBS and, in the near future, ASB. Bryce St dining lane is also located opposite". Kidd says the building has 1.919sq m of lettable area on a land size of 1035sq m, with 13 car parks. The building has an A-grade seismic rating, strengthened to 82 per cent New Build Standard and it has been modernised and upgraded, including a new roof. National tenants include The Co-Operative Bank, Absolute IT, Astra Bridal and T&T Childrenswear. The property is available for sale by deadline private treaty, closing March 23 and is being marketed by Mike Neale, Rebecca Bruce and Kara Gerrand, of Harcourts' Hamilton commercial office.