A new Insite portfolio publication containing 43 properties has been released to the market by Barfoot & Thompson Commercial.
The offerings comprise 16 properties for sale by negotiation, 10 by deadline private treaty, six for auction, and four for sale by tenders. Included in the portfolio are seven properties for lease. With the exception of Whangarei, the portfolio properties are all in the Auckland area.
Commenting on the current market conditions, David Campbell, manager for Barfoot & Thompson Commercial South Auckland says overseas and domestic investor demand remains strong for good quality commercial properties.
"Both the Auckland CBD and the city fringe office markets have seen good returns in the past year with continuing tenant demand being the catalyst for ongoing new developments.
"These will see around 70,000sq m of space added to the city fringe and metropolitan markets over the next two years," Campbell says.
"This is likely to increase the amount of vacant space, so landlords with secondary quality space may need to consider upgrading their buildings."
Campbell says the industrial property investment market continues to outperform other sectors with low vacancy rates, steady rental growth and low yields over the past 12 months.
"The current market has all the characteristics of a late market upswing," Campbell says. "Low interest rates continue to support investor interest, while occupiers continue to struggle to find good quality space for their expanding businesses.
"Little vacant space combined with moderate rent growth has encouraged increased development activity with the majority of new industrial developments continuing to focus on South Auckland.
"Demand for development sites in preferred locations continues to outstrip supply. As a consequence, land prices remain high - putting pressure on developers' profit margins."
Campbell says the demand for retail space also remains solid in well located prime sites.
A feature property in the new Insite portfolio houses three medical buildings and a residence on a 1767sq m freehold property held in four cross-lease titles in Milford on Auckland's North Shore.
"All four adjoining buildings, with a combined total gross floor area of 552sq m, have consent for occupation by health practitioners," says Brian Paulin of Barfoot & Thompson North Shore Commercial, who is marketing 129-131 Shakespeare Rd for sale by deadline private treaty closing at 4pm on Wednesday, November 14, unless it sells earlier.
"Strategically located close to North Shore Hospital and near other medical facilities, the road frontage property is set up as a private surgery and theatre which is fully equipped for general anesthetics," Paulin says. "Zoned Mixed Housing Urban under the Auckland Unitary Plan, thebuildings on site have recently been updated and stand out among the other properties in the area.
"Milford is one of Auckland's premier suburbs with many expensive homes in the area and it's also the North Shore's premier location for medical facilities. Opposite Lake Pupuke, this property has significant development potential with strong commercial and residential appeal."
Paulin says the majority owner-occupied property is being sold with a few different options:
• It could be purchased with vacant possession by an incoming medical/private surgery practice requiring an operating theatre and ancillaries.
• As a development site with excellent views of Lake Pupuke.
• The four separate titles could be combined as one property package or the two titles at 129 Shakespeare Rd and at No. 131 could be purchased separately.
Paulin says the vendor will consider providing rental holding income for a minimum of six months to any purchaser of the property as a development site – with the rent to be based on a recent market valuation.
In a similar vein, a freehold medical and retail property is for sale in the original Beachlands strip retail area to the southeast of Auckland city.
"A feature of this property is its low site coverage," says agent Marty Roestenburg who is marketing 43 Wakelin Rd for sale by tender closing at 3pm on Wednesday, November 14.
Roestenburg says the single level building, constructed around 2015 by G.J. Gardner, occupies a large freehold site of 1012sq m but only has a floor area of 159sq m.
Construction comprises concrete floor with brick facade over timber framing, aluminium glazed joinery and corrugated iron roof.
Three short term tenants are paying $30,000 per annum plus GST and two rooms are currently vacant.
"The front tenancy, with a wide frontage, houses a pharmacy," he says. "Access is via two separate automatic sensor doors with the layout comprising two open plan areas together with a small toilet facility that is exclusive to this tenancy. The fit out is predominately landlord owned."
The floor area is carpeted, and the walls and ceilings are plasterboard lined with inset spot lights while skylights give high levels of natural light.
The pharmacy has six car parks, five to the rear and one park for disabled drivers in front.
The rear tenancy is divided into three main practice rooms and one office with fit-out including carpet flooring, plasterboard lined walls and ceilings and aluminium glazed joinery.
Each practice room, equipped with sinks, is lit naturally via skylights while artificial lighting is again provided by inset spot lights. This tenancy has five allocated rear car parks.
Roestenburg says the common area comprises about 22 per cent of the total building area encompassing corridors kitchen/lunchroom and two separate toilets.
"The fit out is similar to the other tenancies with the addition of tiled flooring to the kitchen
and the amenities. The kitchen also has a laminated bench top with stainless steel sink."
Outside there is a good level of landscaping with timber fencing and most of the site concrete sealed.
Also to the south, but closer to Auckland city, a two-level, freehold building is for sale in Onehunga.
"This property, with warehouse, office and mezzanine storage space, is to be sold with vacant possession," says agent Nick Wilson who, with colleague James Marshall, is marketing 333 Onehunga Mall for sale by tender closing at 2pm on Wednesday November 14 – unless it sells earlier.
"The building, with a gross floor area of 346.26sq m on a freehold 433sq m site, is on the northern side of Onehunga Mall very close to Onehunga train station and near the State Highway 20 interchange."
Wilson says the building is accessed from the front directly off the carpark through a full height industrial roller door; and via a rear dock and a roller door off a driveway down the southern side boundary.
The area immediately behind the front entrance and showroom comprises a large lined room previously used for packaging. Beyond this are two smaller lined rooms apparently once used for sterile packaging. The low stud mezzanine storage area is in the roof space over the rear rooms and is accessed by timber steps.
A single toilet is located in the right hand rear of the warehouse, and beside the rear roller door.
Marshall says the zoning is Neighbourhood Centre with a height limit of 13m.
The property has off street car parking for three vehicles and a good street profile with a road frontage of 15.02m.
"There are a wide range of uses for this property. It's superbly located and benefits from being close to the popular Dress-Smart shopping centre."
"It forms part of the established Onehunga commercial centre which comprises mainly older two-storey premises intermingled with some more recently constructed buildings," Marshall says. "Most of these buildings were built in the 1920s and 1930s and provide ground floor retailing with upper front offices and living accommodation."