Commercial property is, and will remain, an excellent investment proposition this year, says John Urlich, commercial manager for Barfoot & Thompson, in launching the agency's first Insite portfolio for 2019.
"The Auckland market for this year is entirely predictable," an optimistic Urlich says in his foreword to the new portfolio publication.
"Our property market fundamentals are so strong that the well-signalled challenges facing the equity markets this year are unlikely to alleviate the record low vacancy rates that our city is experiencing across all sectors."
Urlich says the new portfolio contains Barfoot & Thompson Commercial's "first 19 for 2019". The properties comprise 12 for sale by negotiation, three for sale by tender, two for auction and two on offer by private treaty.
A featured commercial investment property with a long-term national brand tenant is Unit FA at 111-115 Lincoln Rd, Henderson, which brokers Colin Stewart and Chris Peterson are selling by tender closing at 4pm on February 14.
"The stratum in freehold property has been leased to consumer electronics and appliances retailer, Noel Leeming Group Ltd, since 2000," Stewart says.
"It's within the Lincoln Centre on Lincoln Rd, with passing traffic of about 42,000 vehicles per day.
"The retail centre is only 2km from the State Highway 16 motorway interchange, making it easily accessible to Auckland's CBD, which is only a 15-minute drive away at non-peak times."
Having a total floor area of about 1240sq m the property earns $263,240 net per annum plus GST from a lease expiring August 17, 2024 and a six year right of renewal taking the final expiry to August 17, 2030.
"Based on records obtained from Auckland Council, the building was designed by Thorburn Davidson Engineers in 1987 as a warehouse and commercial building," Peterson says.
"It was built on slightly sloped terrain with the building height from the ground to the building apex being about 7m." The retail area of 1120sq m is open plan with internal linings comprising a mixture of carpet and laminate flooring with an exposed ceiling in part and suspended tile.
The mezzanine area of 119sq m contains two partitioned offices together with a staffroom and two bathrooms. Internal linings include carpet and vinyl flooring, plasterboard partitioning and a suspended tile ceiling with recessed fluorescent tube lighting. A ground floor storage area is essentially unlined.
It has concrete foundations and floors; steel portal frame and walls with light metal cladding; plasterboard internal walls; aluminium joinery; and a roof of light metal cladding supported by cold formed metal purlins fixed to the steel portal frame.
"The building has a seismic rating of 100 per cent or Grade A plus of new building standard," Peterson says.
The zoning is Business-General Business, permitting business activities from light industrial to limited office, large format retail and trade suppliers.
Also to the west of Auckland city and not far away in a high growth development area of Hobsonville, another premium recently completed commercial property is for sale with titles issued and ready to go.
Simon Farland and Chase Erceg of Barfoot & Thompson's North Shore Commercial branch are marketing the two-level industrial Unit 8 at 4 Rawiri Place for an asking price of $2,735,000 plus GST.
"The unit is on a site within the recently completed Hobsonville Workspace development of 23 sites — all of which have been sold to owner-occupiers, developers or investors," Farland says.
"The property at is being developed by CSS Property Limited and the industrial units built by Eagle & Franich Construction. Unit 8 is the last remaining unit available for sale and is a prime road front unit that will be sold new with vacant possession."
The unit is held in one stratum-in-freehold title of 664sq m total gross floor area including two levels of office space and clear-span high-stud warehousing excluding canopy. The outdoor area encompasses nine exclusive car parks along the length of the building with the designated parking allowing for a container drop-off area.
Farland says the eight unit industrial development comprises a mix of attractive open-plan, carpeted and air-conditioned offices, showroom space and functional 6.9m to 7.9m clear-span warehousing.
The top floor of Unit 8 has a floor plate measuring about 18m by 6.86m deep comprising 134m of office and amenities including a separate toilet and kitchenette.
The ground floor office has dimensions of 18m x 6.125m with a floor area of approximately 113sq m. It also houses two toilets, a shower and separate kitchenette.
The warehouse of about 417sq m is clear-span and has a stud height of 7.9 m, accessed by a full height motorised roller door under a 25.5sq m canopy. General construction is of concrete foundations and floors; with concrete tilt-slab walls; aluminium and timber framing; plasterboard internal walls; aluminium joinery and a Longrun steel roof. Erceg says the development offers "sought after office-to-warehouse ratios, featuring high-spec modern construction to 100 per cent of new build standard; and with a security system incorporated".
The property is on the northwest side of Hobsonville Rd, close to SH16 and SH18. The land is zoned Business Light Industry under the Auckland Unitary Plan.
"The rear of the site is undeveloped and, with appropriate consents and fellow owner co-operation, has the potential for further development," Erceg says.
Back in Auckland city, four freehold units are on offer within the historic Victoria Park Markets complex across the road from Victoria Park.
"The four are for sale together in one strip or individually," says commercial broker Reese Barragar, who is marketing Units 19-22 at 210 Victoria St for sale by negotiation.
"Ranging in size from 27sq to 53sq m we expect these affordable entry level parcels to attract investors and occupiers alike," Barragar says.
Zoned Business City Centre, the freehold units are being sold with vacant possession and have a total rectangular shaped building area of 148.69sq m.
"The units combined have a projected net income of $59,472 per annum at around $400 per sq m plus GST and outgoings," he says.
Units 19-22 are in the Eastern Depot Building on the ground floor of Victoria Park Markets which has access off Victoria St, Drake St and Union St.
The internal configuration of each unit is predominantly open plan with separate front entry glass doors. Some have inter-connecting doors; and all units have their own water and power meters and individual wastewater connections.
"The newly-refurbished buildings showcase Victoria Park Market's beautiful architecture in a precinct that has been transformed into a stylish heritage setting with lifestyle, gifts and beauty stores; cafes, delicatessens, restaurants, and bars," Barragar says.
He says the surrounding area has significant residential and commercial development.
"This location is seen to be a desirable environment for young professionals or 'empty-nester' occupiers who want to be close to the CBD, on a regular transport route, and near quality amenities in nearby Freemans Bay, Ponsonby, Westhaven and The Viaduct.
"An anticipated increase in residential density, will result in increased retail demand as the location gains further momentum."
Barragar says motorway ramps are less than a kilometre away via Union Street while Auckland's central railway station is 1.6km away within the Britomart Transport Centre.
East of Auckland a large greenfield development area of nearly 3ha is for sale in Flat Bush.
"The land is in pasture now," says John Stringer who, with colleague Eddie Zhao, is marketing 285 Murphys Rd and 370 Ormiston Rd for sale by tender closing 2pm, March 6.
The near rectangular land block of 30,590sq m occupying a strategic corner site at the intersection of Murphys and Ormiston Rds, comprises Lot 1 of 13,732sq m and adjoining Lot 2 of 16,858sq m. "Each lot is offered for sale separately or together," Stringer says.
"This is a high profile site ready for development, on a major intersection and will appeal to both commercial and residential and developers."
Zhao says the land is bounded by a recreation reserve to the north, and by a recently developed residential subdivision to the east.
"The lots have different zonings with Lot 1 at 285 Murphys Rd zoned predominantly Neighbourhood Centre permitting both commercial and residential uses; while Lot 2 at 370 Ormiston Rd is predominantly zoned Terrace Housing and Apartment."
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