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Corrections Department’s provincial offices placed on the market for sale

The 2,023-square mere site on the periphery of Gisborne’s central business district contains a 1,216-square metre office building constructed specifically for the Department of Corrections. Located on the corner of Kahutia Street, and Bright Street, the single-storey premises with a mezzanine level was built in 2011, and has an A-grade seismic rating.

Established in 1896, the role of the New Zealand Probation Service is to manage criminal offenders sentenced to community-based sentences such as home detention, community detention, and intensive supervision. The service also manages prisoners in the community who have been released on parole, as well as offenders on release conditions at the end of their prison sentence for up to six months.

The New Zealand Probation Service‘s Gisborne offices are constructed of tilt slab concrete and steel, with timber framing, on concrete flooring with aluminium joinery. The building’s sleek angled roof lines slope from 2.6 metres at the edges to four metres in the centre, while the building’s street frontage stretches almost the whole width of the site.

The square-shaped freehold property is zoned Outer Commercial under the Gisborne City Council plan – allowing for office tenancies such as the Department of Corrections, light industrial or manufacturing operations, warehousing, and bulk retailing. The zoning notes that tenancies within the area are often what it calls “high traffic generators.”

The freehold premise at 156-158 Kahutia Street in Gisborne, is now being marketed for sale by tender through Bayleys Gisborne, with the tender process closing on August 24. Salespeople Mike Florance and Janet Liu said buildings housing Government departments seldom came up for sale in Gisborne simply because the highly regarded tenant was the Government.

The Department of Corrections is on a 15-year lease at the 156-158 Kahutia Street address running through to 2026, with three further three-year rights of renewal, paying annual net income of $242,096 plus GST. All operating expenses for the site are paid by the Department of Corrections. Rental reviews are linked to the Consumer Price Index – which currently sits at 7.3 percent.

“The property has been well maintained both internally and externally throughout its life, as befitting of a Government agency in a very public-facing role on a high-profile corner location,” said Florance.

“The well-lit and spacious office layout is largely open plan - with a public reception area and waiting room at the front along with a second reception area at the rear of the building in the garage area, several staff meeting rooms and managers’ offices, multiple client meeting rooms, an employee kitchenette, and segregated bathroom amenities for both staff and clientele.

“The rear of the property – accessed from Bright Street – contains security gated parking for 21 vehicles, some of which are used to transport probation workers to and from sites during completion of their sentences. Roller doors provide access between the sealed car park and an interior garage space where probation workers gather at the start or conclusion of their work schedules.

“The car park also has three electric vehicle charging points, while a private landscaped courtyard space is utilised for entry by Probation Services staff. Bicycle and scooter security amenities outside the building under cover are also provided for use by clientele while on work duties.”

Florance said the premises also benefitted from a considerable amount of car parking spaces on both Kahutia and Bright streets in an area of town which separates Gisborne’s commercial centre from its residential component.

Other Government tenancies in Gisborne include the Department of Internal Affairs, the Ministry of Housing, Work and Income, the Ministry of Social Development, the Inland Revenue Department and Ministry of Education which share premises, the Ministry for Primary Industries, the Department of Conservation, and the Ministry of Māori Development.

“Blue-chip Government tenancies represent a very small percentage of Gisborne’s commercial property stock, which is why the premises they are located in are so tightly held by investors,” Florance said.

Click here for more information on the listing.

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