"Since the beginning of 2014 we have noticed a distinct change with owner-occupiers, investors and syndicates all very active in the market," he says.
"A window of opportunity has opened for investors, and they are on the move, taking advantage of every good possibility presented to expand their portfolio.
"While interest rates are expected to rise over the next few years, they are still sitting at historic lows, encouraging growth and development. New Zealand's economy is expected to grow between 3 per cent and 4 per cent per annum over the next few years, outpacing its peers. The population is increasing, supported by strong migration figures. Profitability is rising to heights not seen since the global financial crisis, leading to business expansion and the development of new premises.
"Owner-occupier confidence is flowing through to property owners and landlords, with rental rises and yield compression. The office sector is also providing capital returns of just over 4 per cent per annum - the highest since mid-2008. This is the economic environment that is providing strong demand for commercial property."
Herdson says the portfolio showcases a broad selection of properties to meet that demand, including development sites, office properties, retail investments and industrial properties for sale or lease.
One notable offering on Auckland's North Shore is a retail investment at 111 Bentley Ave in Glenfield, a high-profile corner site with eight retail tenants anchored by a BNZ bank. It is for sale after being in the same ownership for 50 years through Euan Stratton and Deborah Dowling. It will be sold by auction at 11am on Thursday, May 15, at Colliers auction rooms in the SAP Tower, level 27, 151 Queen St unless it sells earlier.
Developers looking for large sites on the fringe of Auckland's CBD will find two prime opportunities in the portfolio including Bic's 1.1ha office and warehouse property at 25 Normanby Rd in Mt Eden's sought-after double grammar zone, for sale by private treaty closing Thursday May 8, through Andrew Reed, Peter Kermode and Charles Cooper.
Another significant land holding is in Parnell at 99-115 St Georges Bay Rd, comprising a 2585sq m property in a mixed use zone that gives a wide scope of options for the next owner. It is fully leased to five tenants on short-term leases, providing holding income, and is being marketed for sale by John Davies and Kris Ongley via deadline private treaty closing on Friday, May 16.
A number of industrial properties are featured in the Colliers portfolio, which contains an article giving an overview of the industrial market by the Colliers research team.
It says there is a shortage of high-quality modern industrial space and the competition between owner-occupiers and investors is driving yields to new lows. "The descriptor for the Auckland industrial market is 'buy it if you can find it'."
An industrial property of note in Auckland is 18 Ron Driver Place, East Tamaki, a massive 14,000sq m manufacturing warehouse facility with high spec office space over two levels. With an income stream from the partly occupied facility of $511,605 a year, it is for sale by negotiation through Andrew Hooper, Greg Goldfinch and Paul Higgins.
The portfolio's Briefings sections contain market commentary from Colliers' offices in Hawkes Bay, Wellington, Christchurch and Queenstown.
Notable offerings include a property leased to a KFC restaurant in Te Puke, a motel property in Mt Maunganui, retail investments in Hastings and Gisborne, an industrial property on a long-term lease in Christchurch, and a prime CBD office property in Wellington - the 14-level HP House office tower.
