Tough times call for fresh ideas

The downturn in the commercial property market had seen Barfoot & Thompson Commercial "casting the net further and more often" for its clients and investors, said John Urlich, Barfoot & Thompson's commercial manager.

As a result, the company has kicked off the start of a new financial year by launching its new portfolio magazine, Commercial Insite, featuring 89 different properties available for lease or sale across the greater Auckland area.

"There is certainly more urgency in the market now in comparison to this time last year," Urlich said. "Transaction numbers are up and a broad range of private investors, developers and occupiers are actively seeking to complete transactions.

"Our experience of late has been that investors are seeking to capitalise on the historically low mortgage rates, with a great number indicating to us in the last few months they prefer to fix their rates.

"We've also had increasing offshore inquiry, particularly from Asia, as cross rates started to favour other currencies relative to the kiwi."

Urlich said Barfoot & Thompson's international affiliate Savills PLC had reported similar trends in the Australian commercial property market as Southeast Asian investors seek to invest counter-cyclically.

In response to changes in the marketplace, Urlich said Barfoot & Thompson had engaged in a "re-branding initiative" that included the publication of the Commercial Insite magazine, channelling "even more" direct mail and seeking as much website exposure as possible.

The launch of Commercial Insite had been timed to coincide with the re-launch of the Barfoot & Thompson Commercial website which Urlich perceived to be an essential component of their marketing mix.

"Web inquiry continues to increase annually, despite the market downturn, and we have made a large investment in this channel. Our listings now appear in as many as five different websites, including our own, which now generate well over two million detailed property page readings per month. This is paying dividends, particularly in the leasing market."

Urlich said the insite portfolio was equally divided between properties for lease and for sale, including many leasing opportunities over a range of differing grades of property.

A broad cross section of A-grade, character space and affordable and flexible sub-lease alternatives are all featured.

Peter Churchill, the firm's corporate and leasing manager, said the leasing market remained competitive with lessors ready to tailor solutions to meet the business needs of their tenants.

"Leases featuring structured rentals and fit-out alternatives are readily available to occupiers seeking a partnership with their landlords," he said.

Quality offerings in Barfoot & Thompson's new portfolio included Neil Development's new project under construction in Nugent St, Grafton, which is targeting a Green 4-Star rating.

Douglas Fan, who is marketing the property, said the site was well known for its original building occupied initially by the Board of Education.

"It has since been converted to apartments with ground-floor retail," Fan said.

On the balance of the site, in June, Neil Developments is scheduled to complete a second five-level building that will offer floor plates from 400sq m to 1700sq m and more than 600 carparks. The street-level floor will host cafes and convenience shops.

"This building offers an excellent value proposition to prospective tenants and an attraction for employees is its proximity to the busy Khyber Pass bus route," Fan said.

In Newmarket, agent Colin Kumar is offering for sale and lease some affordable unit titles, including the remaining retail components of the L&Y retail complex on the corner of Broadway and Remuera Rd.

All the shops in this development were initially sold during the 2004-06 period to owner occupiers and investors. However, a limited number of shops has become available for re-sale and lease on a first-come basis.

The Station Square development is scheduled for completion at the end of this month and the titles are expected to be issued in May. The development comprises 42 retail units on the ground floor integrated with a six-level residential development that has about 550 residential apartments.

The development is being integrated with the new flagship railway station, presently under construction in the Broadway Shopping precinct. Auckland City Council has earmarked a budget of $75 million to be spent on upgrading the Newmarket railway station due for completion toward the end of the year.

Character space is well represented in established and "trendy" areas like Ponsonby Rd and Eden Tce. The portfolio includes the entire third-level floor of the Auckland CBD's historic Ferry Building on Quay St, which has become available for lease for the first time in 21 years. The building houses the popular Cin Cin and Harbourside restaurants

Barfoot & Thompson commercial agent Rohan Cooke has an assortment of properties for lease, including another well-known CBD waterfront building at 2 Commerce St with a range of options from 63sq m to 513sq m. The former Union House, close to the Britomart railway station, was designed in the 1970s by Warren and Mahoney and is well known for its exterior cross bracing.

Refurbished last year, three whole floors are available of 513sq m, including the top floor with naming rights.

In the Australian-owned Nokia building, near the Vector Stadium at 32 Mahuhu Cres, space is available for lease from 196sq m to 875sq m in two separate areas interconnected by the service and lobby areas. The A-grade six-level building features cafes and destination retailers on the ground floor, while the top floor has one of the more lavish office fit-outs available to rent.

Commercial properties in the fast-growing region of South Auckland also feature prominently. Glen Hitchcock, the South Auckland-based sales manager, is promoting numerous properties for lease, including both 2 and 3 Osterley Way in Manukau Central with sizes ranging from 215sq m to 533sq m. A former Deloittes property at 15 Putney Way, also in Manukau Central, offers similar smaller-quality options.

Industrial properties available for lease are prominent throughout the portfolio with an assortment from Kumeu in the northwest, Mairangi Bay on the North Shore to Wiri and Takanini in South Auckland.

A quality three-level 1970s office building with 13 carparks has been neatly refurbished at 12 Liverpool St in Auckland's CBD with tenders closing on April 23.

Comprising a total lettable area of some 477sq m, it is only partly occupied returning $92,280 a year. Cam Paterson and Murray Tomlinson, who are marketing the property, believe it would be ideal for owner occupiers wanting a CBD location for under $2 million.

Out west, the owners of a freehold office and showroom property at 381 Great North Rd, Grey Lynn, have instructed Jonathon Ferrier and Warwick Wood to sell it by auction on May 6. It returns $126,683 a year and is within easy reach of the CBD and motorways.

Also going to tender in mid-May is a six-level building at 48 High St in Auckland city. Featuring ground-floor retail and a penthouse apartment, with open-plan office space in between, the building is close to the Victoria St carpark.

"This represents one of the few fee-simple buildings for sale under $5 million in CBD Auckland at present and will appeal to a savvy counter-cyclical investor," Urlich said.

Tomlinson is selling an office and showroom property at 8 Railway St, Newmarket, that comprises two floors with a net lettable area of 1365sq m along with 15 carparks.The leased investment is occupied by a mix of tenants, returning $336,000 a year.