Strong demand for Commercial Property

The commercial property market continues to show strong demand from purchasers and tenants with plenty of activity on the North Shore.

Recent sales have included an 849m² industrial development, encompassing 4 separate titles at 68 Paul Matthews Drive sold in one parcel by Mike Ryan and Matt Prentice for $3,360,000.  This property was sold at Auction after strong bidding by several investors.  The price reflects a yield of 5.19%.

A 250m² property returning $49,000pa net on a 3 year lease at 17A Vega Place was sold at Auction for $900,000 at a yield of 5.4% and Unit 14, 63 Arrenway Drive was sold tenanted for $560,000.

There has also been plenty of leasing activity in Wairau Valley with 2/83 Ellice Road and 61A View Road being leased to existing local businesses, with no downtime in between tenancies.

Three units at 18 Corinthian Drive, Albany have been leased at the asking rental price.  With a settlement that took place in February, 100% of the units now have full commitments.

Business owners continue to seek opportunities to purchase, and a 140m² ground floor unit at 3 Ceres Court was sold for $701,000 by Janet Marshall and Kerry Cook.

Fewer listings in the office market have resulted in quick decisions being made.  433m² of first floor office at 8 Greydene Ave, Takapuna, Unit 6, 40 Arrenway Drive and A2, 72 Apollo Drive, Rosedale were all leased last month with a number of properties under contract.

The lack of stock across the North Shore and Auckland markets is problematic and we are fielding high volumes of enquiry from investors and tenants, especially at entry-level.

The Colliers North Shore team has been participating in a health and fitness challenge to promote a “healthy body and healthy mind”.  It certainly has been energising and a great way to ensure we are on top of our game.

For an appraisal of your property, please contact our team of specialists or drop by our Colliers office on Level 1, 129 Hurstmere Road, Takapuna.

By: , Commercial Property with Jimmy O'Brien, Colliers North Shore

Issue 89 July 2018