A commercial property in a high-growth area of Auckland’s prestigious eastern fringe is attracting solid interest from investors taking proactive steps to enhance the value of established assets.
The refurbished office building on a prime 1,404sq m (more or less) freehold corner site at 31-33 Great South Road is less than one kilometre from rapid transit at the Remuera and Newmarket Train Stations, and within the Newmarket Walkable Catchment zone.
Bayleys Auckland City & Fringe Director Alan Haydock says income-producing properties within walkable catchment areas are a desirable commodity in the current market, given scarcity and an emphasis on infill development.
“Funding constraints and the politicisation of creating new infrastructure has meant standing property in locations proximate to jobs, transport and amenities – ‘walkable catchments – are increasingly in demand amongst investors and commercial owner-operators.
“Strategically-located sites are in short supply, giving assets in prime locations a distinct pedigree for investors and owner-occupiers – particularly those looking to optimise performance through lease negotiations or value capture.
Mr Haydock is marketing the property for sale by tender, closing at 4:00 pm on Tuesday, 19th September 2023 (unless sold prior) with colleagues Damien Bullick and Ben Wallace.
The property features a net lettable area of 1,007sq m (more or less) over three levels with 26 on-site car parks, returning a net annual rent of $202,184 plus GST.
Bayleys Auckland Corporate Leasing Director Ben Wallace says the property is partly leased to four established tenants, with a single vacancy on the ground floor, which has been recently fit out and refurbished.
“The property’s configuration – which supports independent tenants – provides a split risk opportunity and scope for future rental upside by increasing the value proposition from add-value works, lease negotiations, and full occupancy,” he says.
A property management firm and software business occupy parts of levels one and two with varying lease terms, which include demolition clauses.
“Two accountant’s offices form the balance of the income generated on levels one and two.
The 287sq m (more or less) tenancy on the ground floor is vacant.
Bayleys Auckland City & Fringe Associate Director Damien Bullick says the underlying site benefits from intensive Business – Mixed Use zoning, allowing residential or commercial development to 18m.
“Perhaps one of the most attractive attributes of the property is its prestigious Epsom address, which features excellent transport links nearby, exposure to passing traffic, proximity to amenities and preferable school zoning.
“It is a short distance from Remuera and Newmarket and offers quick access to the CBD.
“Additionally, the property falls within the coveted ‘double grammar’ school zone – a proven advantage for resale, rental demand and capital uplift should the new owner intend to maximise zoning fundamentals for a mixed-use redevelopment.”