The $60.8 million sale of a prime Takapuna office campus shows the commercial property market on Auckland’s North Shore remains hugely buoyant.

The sale of 2-4 Fred Thomas Drive to a local syndicator, which settled last month, is the single largest property transaction on the North Shore so far this year. It brings the total value of North Shore transactions brokered by Colliers International in 2017 to more than a quarter of a billion dollars.

The deal reflects the tremendous strength of the North Shore market and our team is thrilled to have been involved in such a landmark transaction in what remains a highly competitive market.

We’re seeing huge demand for quality properties on the North Shore, especially as prime industrial and office vacancy rates remain near record lows.

Vendors are delighted to be able to achieve low yields, while investors are continuing to reap the benefits of strong tenant demand.

Matt Prentice of Colliers International’s North Shore office brokered the deal with Capital Markets Director Jason Seymour, North Shore Director Shoneet Chand, and North Shore Commercial Sales Manager Janet Marshall. The sale price represented a yield of 6.96 per cent.

The 1.5ha mixed use property comprises three fully occupied buildings – two recently refurbished and a third newly built. Located at the edge of the popular Takapuna town centre, the property brings in $4.32m in annual rent from a variety of quality medical and commercial tenants.

The strong and diversified income stream, highly visible location and excellent condition of the buildings made it an enviable package for buyers.

Over months of negotiations, the syndicator's due diligence was very impressive and meticulous and our team has been impressed by the care taken throughout the sales process.

The North Shore commercial property market is moving ahead with confidence and our team maintains a focus on results, taking a collective approach to working with clients and their specific requirements.

Our North Shore office has completed over a quarter of a billion dollars in transactions over $300,000 in the year to mid-September, with a significant number of these sales over $3m.  

We’re noticing the lack of available commercial and industrial zoned land on the Shore is helping to drive demand.

Prime properties remain tightly held, which is contributing to a shortage of stock coming to the market.

As a result of the strong demand, there has been an uplift in off-market sales and leasing, with tenants often paying full rents and landlords offering few incentives.

Among the recent off-market transactions was the sale of the Caltex service station at 21 Constellation Drive.

The buyer had been looking to invest in prime located stock, and through our strong relationships we were able to secure an excellent off-market deal for both parties.

The 3,170sq m freehold property sold for $3.475m, representing a yield of 4.6 per cent. The deal was brokered by Prentice and Chand.

Another off-market sale was a 3,961sq m mixed use property at 138 Hurstmere Road, Takapuna, the home of some of Takapuna’s great hospitality purveyors including The Elephant Wrestler, Master and Apprentice and the Hurstmere Road Brewbar. The property was sold for $25m. The deal was brokered by O’Brien and Euan Stratton.

There has also been strong activity in the auction room.

The May 31 auction of the Resene Paints premises at 8 Croftfield Lane, Wairau Valley saw intense bidding from more than 20 interested parties.

After a tense back-and-forth between the final two bidders, the property sold under the hammer for $5.6m, representing a yield of 3.1 per cent. Prentice marketed the 2,594sq m freehold property with Chand and colleague Ryan de Zwart.

Among the North Shore team’s most significant transactions this year was the sale of 71 Apollo Drive, Mairangi Bay – a well-finished modern industrial property on long-term lease.

The 5,254sq m freehold property sold for approximately $11.4m, representing a yield of 5.75 per cent.

The Apollo Drive deal shows investor demand for prime industrial stock with good fundamentals on the North Shore remains strong.

Our Takapuna-based office covers Auckland’s North Shore, the fast-growing North West, and the wider northern Auckland region through to Northland.