Triple-tenanted Riccarton investment

A multi-tenanted commercial property in central Riccarton has been placed on the market for sale, offering diversified income alongside near-term opportunities to reset rents and reposition space, Bayleys brokers say.

Bayleys Christchurch Commercial and Industrial senior broker, Graeme Donaldson, together with colleague Steven Schwalger, is marketing the freehold property at 85 Picton Avenue for sale by deadline, closing at 4:00 pm on Thursday, 10th September 2026 (unless sold prior).

The offering comprises an approximately 864sqm office building on a 1,349sqm (more or less) site, generating a net annual income of circa $123,133 plus GST.

Donaldson says the property will appeal to investors seeking established cash flow without depending on the performance or lease decisions of a single occupier.

“Income is distributed across three tenants occupying suites of different sizes, providing investors with greater flexibility to manage lease events progressively rather than confronting a whole building expiry at one time,” he says.

The largest tenancy is held by Arise Church, which occupies approximately 399sqm with 11 car parks, and contributes circa $58,137 annually through a lease expiring in January 2027.

Its expiry falls shortly before that of local accountancy firm Meyer & Moody, whose approximately 168sqm tenancy includes seven car parks and generates approximately $26,794 annually. The firm’s current term runs until April 2027, followed by two, two year renewal rights with rent reviewed to market at each renewal.

Together, these 2027 lease events give an incoming owner early scope to revisit more than two-thirds of the property’s income.

“This is balanced by the longer tenure of computer repair operator Service Plus Group, which occupies circa 215sqm with five car parks and returns approximately $38,201 annually,” says Donaldson.

Its current lease extends to October 2028, with two further three year renewal rights carrying the potential final expiry through to September 2034. Annual rent adjustments are linked to the Consumer Price Index and capped at four percent, while renewal dates trigger uncapped market reviews.

Bayleys Christchurch Commercial and Industrial broker, Steven Schwalger, says the combination of near-term and longer-dated lease events gives an incoming owner several ways to influence future performance.

“The existing leases establish income from settlement, while the 2027 expiries provide relatively early opportunities to review rents, negotiate new terms or reconsider how parts of the building are occupied.

“Meanwhile, Service Plus’ tenancy provides a longer income horizon and structured rent review mechanisms. For investors prepared to take an active approach, the value lies in being able to manage those components independently.”

The building has a seismic rating of 73 percent of New Building Standard, based on correspondence dated March 2026.

Schwalger says its position within Riccarton places occupiers between Christchurch’s central business district and western suburbs, with access to major routes including Riccarton and Blenheim Roads. Westfield Riccarton, the University of Canterbury, Christchurch International Airport and the CBD are all readily accessible, broadening the location’s relevance to employers, staff and clients.

“Additionally, the property is zoned Town Centre, a framework intended to support larger retail and employment activities, community facilities, entertainment, hospitality and accommodation. In Riccarton, the zone provides for building heights of up to 32 metres, subject to planning requirements.

“This zoning adds a longer-term dimension to the property’s investment case. The immediate proposition is a three tenant income stream with identifiable lease events. Beyond that, buyers are securing a substantial freehold landholding in a centre where planning provisions support greater intensity and a broad range of commercial activities.

“That allows investment decisions to be made in stages: manage the current income first, then assess refurbishment, re-leasing or future redevelopment against market conditions.”