A standalone office building in the popular North Harbour business precinct is for sale with flexibility to either own and occupy from April next year or negotiate a new lease with the current tenant.
The property at 1/2A William Pickering Drive in Rosedale, Auckland, is being marketed for sale by Colliers International's North Shore team.
It comprises a 959sq m two-level office building on a 2730sq m site with 41 car parks. A new freehold certificate of title is due to be issued.
Brokers Janet Marshall, Matt Prentice and Shoneet Chand say the key to this opportunity is flexibility.
"This well-presented commercial building is one of five Auckland learning centres run by DynaSpeak, the English language school of tertiary education provider Te Wananga o Aotearoa," says Marshall.
"With a long-standing consent for educational use, the tenant has expressed an interest in remaining after the lease's final expiry in April 2019.
"However, the imminent lease expiry presents an opportunity for an owner-occupier to secure new premises in a tightly-held market where large floor plates are scarce.
"Alternatively, add-value investors could negotiate new lease terms with DynaSpeak, or take advantage of favourable market conditions to secure a new tenant.
"The North Shore office market continues to see vacancy levels drop due to a lack of office building supply and high demand from tenants and owner-occupiers.
"Rental rates have significantly increased, with buildings having large floor plates becoming scarce on the North Shore."
The property earns $265,390 plus GST in net annual rent with no rights of renewal, providing holding income or a good basis for negotiating a higher rentreturn.
It is centrally located within the predominantly industrial area of North Harbour, which has excellent connectivity to the rest of the North Shore and the wider Auckland region.
The property has been consented for educational use since 2010, although its layout and Business Light Industry zoning also make it suitable for showroom retail and office accommodation.
Prentice says the vendor has recently obtained an IEP [Initial Evaluation Procedure] report that gives the building an initial seismic rating of 90 per cent.
"The ground floor has a light, open atmosphere thanks to its 3.2m stud height and voluminous, almost-square floor plan.
"The entrance is via a covered porch into a foyer with a reception area and a stairwell giving access to the upper level.
"The ground floor features offices, meeting rooms and amenities but is otherwise open plan. The main amenities, including a shower and disabled toilet, are located at the rear of the building by a second stairwell.
"The upper level has a standard stud height of 2.6m, with a feature void at the front of the building overlooking the ground floor. It has a small enclosed kitchen and separate male and female amenities."
Chand says the property is on the westernmost side of William Pickering Drive, with the Upper Harbour Highway running along its southern boundary.
"The property benefits from light traffic flows, as this part of the road is a no-exit street," he says.
"Surrounding development comprises business park buildings of a similar age, including an office park, display yard and tavern in the immediate vicinity."
Chand says the property has excellent access to the Northern Motorway via the Upper Harbour Drive or alternatively Tawa Drive to the north.
"This is a highly desirable location, which has seen an uptick in tenant demand over recent years."