City fringe office units come brimming with advantages

Ascot Park, Ellerslie.

A number of office units on Auckland's fringe are expected to interest buyers seeking high-quality office space outside the tight central city market.

"There's a flight to quality and the demand is spilling over to the fringe markets," says Tony Allsop of Colliers International, who is marketing a large unit for sale in the Ascot Park office complex at Ellerslie.

It's one of several office properties in Colliers' latest New Zealand Portfolio in Ellerslie, Mt Wellington and the North Shore.

Allsop says the 629sq m ground floor strata unit at 93-95 Ascot Ave is being sold with vacant possession and via deadline private treaty closing at 4pm on Thursday.

The office park of four multi-level buildings is in a medically dominated precinct 7km from the Auckland CBD and was built in 2007 by Mansons.

Once part of Ellerslie Racecourse, the grounds are attractively landscaped, and the location offers easy access to the Southern Motorway.

"On the ground floor, with a large open floor plan and 18 car parks, this office unit feels like a stand-alone property although it is a unit titled property," Allsop says. "It's also less than 10 minutes' drive from Auckland city centre outside rush hour traffic.

"This unit, which used to be occupied by BodyTech, would suit an investor or owner-occupier. We've already been approached by several groups of doctors interested in buying the property for their practices."

Allsop says the unit is typical of fringe office property much in demand due to the shortage of premium and A-grade space in the city. "Fringe properties offer better quality space for the money compared with similar properties in the CBD and this unit comes with a high-profile location and plenty of parking."

He says occupancy in the Ascot Office Park is near 100 per cent and the units are tightly held.

On the North Shore, Colliers brokers Janet Marshall and Craig Newth are marketing office unit D3 at 63 Apollo Drive, Mairangi Bay, which has a new six-year lease with two further six-year rights of renewal. The unit will be sold by auction at 11am on May 20 in Colliers' Auckland auction rooms at 151 Queen St.

"The property is on a lease from April 1 to Goodwin Turner Commercial Lawyers, a solid tenant with a newly fitted out office in modern premises," Marshall says. "It has a second-level pop-top boardroom providing a deck area and an elevated position, with additional basement storage or garage."

"The unit is situated in a desirable office park in popular Apollo Drive, close to the Constellation Drive motorway access and Albany Mega Centre. It is centrally located to professional businesses in the area with several cafes nearby."

Marshall says vacancy levels in the area have dropped from 9 per cent to 6.8 per cent over the past year because of a lack of new office space being built on the North Shore and absorption by businesses expanding and looking for larger premises.

In Mt Wellington, Colliers broker Ash Vincent, with colleagues Jolyon Thomson and Tim Wylie, is marketing 10 well-presented office and warehouse units at 18-20 Hannigan Drive near the Lunn Ave commercial strip and Stonefields residential development. The units range from 330sq m to 457sq m, with earthquake ratings of 72 per cent of New Building Standard. "Nine of the 10 are occupied on a variety of lease terms," Vincent says. "It's the first time these units have been for sale individually in 25 years and they can be purchased together or individually ranging from $599,000 to $799,000."

He says the sale represents a good opportunity for investors seeking tenanted bite-sized investment properties. "The one unit that has just become vacant will probably interest an owner occupier."

The units are grouped in a U shape around a large parking area, which opens to Hannigan Drive, about 3km from the Ellerslie-Panmure Highway. The two-storey, concrete block units have high-stud warehouse space, attractive front offices and roller-door access.