Owner occupying popular

The commercial property market on the North Shore has seen a number of purchases from businesses looking to own their own premises. Unit B3, 63 Apollo has been purchased by Goodwin Turner Commercial Lawyers, a 571 sqm first floor office, and Unit D3, 14-22 Triton Drive by AVC Ltd.  Another local business XFire has moved from Constellation Drive to a larger office which they have purchased at Unit G3, 4 Orbit Drive.  Offices at Unit 8D, 331 Rosedale Road and Unit 1B, 3 Ceres Court were both purchased by neighbouring businesses to expand, and vacant industrial units at 17C and D Airborne Road were purchased by owner occupiers for $3.040M and Unit 19G Orbit Dr at $3.5M.

Climbing rentals due to limited stock has resulted in high demand from owner occupiers.  This has further exacerbated problems for businesses looking for premises under 200 sqm.

Recent leases in the area have seen the last industrial unit at 18 Corinthian Drive, Albany being leased.  This 12 unit industrial development was completed in February this year and is now completely leased/sold.

The activity from 1,000+ sqm tenants has increased significantly and with limited choices in the market, this has meant that there have been multiple leasing offers for one property.

Businesses looking to relocate have similar priorities in their requirements, with the number of carparks available being of paramount importance.   Poor air conditioning is the biggest complaint among employees working within commercial office buildings, according to a New Zealand Office Insight Survey conducted by Colliers International.  Also, rating in the top five complaints about working conditions are:  too much noise, a lack of privacy, insufficient bathroom and shower facilities, and the availability of meeting rooms or lack of amenities within meeting rooms.  Air conditioning and temperature control is the big complaint from employees. The survey has found 55 per cent of New Zealand office workers have problems with the temperature of their offices.

There continues to be a high demand from commercial investors looking for quality properties, with 10-12 Rothwell Avenue sold partially tenanted for $18.4M, 7a Parkhead for $3.3M at a 5.94% yield and four unit titles at 68 Paul Matthews selling for $3.36M at auction at a 5.19% yield.

The last quarter of 2018 is likely to see further increased activity.   Colliers International recommends that all parties take legal advice from a lawyer specialising in commercial property before signing contractual documentation.

Janet Marshall is a Director and Commercial Manager at Colliers International. Mob: 021 684 775 or janet.marshall@colliers.com