Commercial property shrugs off global influences

Despite economic influences like market corrections, a reduction of the New Zealand dollar against the greenback, consensus being reached on the Trans Pacific Partnership agreement, and a reduction in the Reserve Bank's Official Cash Rate, demand from investors for commercial property remains high, says John Urlich, commercial manager of Barfoot & Thompson.

Launching the agency's latest Insite portfolio publication containing 41 industrial, office and retail properties for sale and lease, Urlich says "activity across all sectors of the market at all price points is pronounced and it is keeping our three commercial offices in Auckland CBD, North Shore and South Auckland busy.

"A number of our institutional clients have tens of millions of dollars to invest in large quality investment properties and are seeking to actively add to their already substantial portfolios," Urlich says. "At the other end of the spectrum, we receive regular inquiry from private individuals and family trusts looking to buy properties at less than a million dollars.

"We have also seen significant activity on the leasing front. Our concern is that vacancy levels are now extremely low, with potential tenants being put in a position where if they do not make a decision quickly, they will miss the opportunity presented.

"In some areas such as Penrose and Onehunga, the sight of a 'For Lease' sign on the roadside is a rarity. We have several industrial tenants and purchasers seeking substantial industrial tenancies in excess of the 1000 sq m level, who are required to view properties well outside of their preferred central locations."

Urlich says the situation is the same in the Auckland CBD where planning for large office towers is well underway as vacancy rates continue to fall.

"The retail dynamic is similarly active with the new shopping centre development recently opened out at Westgate and several newer retail projects due for completion soon."

The new Insite portfolio includes properties for sale by auction, tender and deadline treaty along with eight properties for lease. Eleven of the properties featured are on the North Shore.

"The properties featured are from all over Auckland - Albany to Pukekohe - and include one in the Hamilton CBD as well as a big Christchurch offering that David Goodhue and Bruce Jiao of Barfoot & Thompson North Shore Commercial are selling by deadline private treaty closing on Tuesday November 3 in partnership with JLL .

This comprises the sale of the Pegasus Golf and Sports Club in Canterbury's Pegasus Bay 25 kms north of Christchurch on State Highway One along with a retail centre within Pegasus Township.

5.John Urlich, Barfoot & Thompson Commercial.