Strong market for retail properties

4:52 PM Friday October 27, 2017 Colin Taylor

Two new retail premises are for sale in this building at 189-197 Great North Rd, Grey Lynn. Photo / Supplied

Investor demand for well-located retail building investment opportunities remains strong, says Peter Churchill, commercial operations manager for Barfoot & Thompson Commercial.

Churchill says the retail sector is continuing to evolve with retailers further developing their online sales capacity.

“Expectations are for further growth in the demand for retail space from the entertainment, cafe and hospitality sectors, but retailers more exposed to online sales competition may struggle,” he says.

“Ongoing population growth should continue to drive overall retail sales growth although this is likely to be unevenly distributed across different store types.”

A number of retail properties for sale are featured in the agency’s latest Insite portfolio of 39 commercial properties.

Two new ground floor retail premises at 189-197 Great North Rd in Auckland’s city fringe suburb of Grey Lynn encompass the street level space of a new five-level property called North Apartments.

“The two freehold ground floor showroom/retail units are designated Unit 1R and 2R,” says Grant Magill who, with colleague Reese Barragar, is marketing them with vacant possession for sale or lease by negotiation.

Strategically placed on a 1366sq m corner site, the property has a frontage to Great North Rd of 40.21m and a frontage on Turakina St of 35.20 m.

“Unit 1R comprises a 331.60sq m retail unit on the corner of Great North Rd and Turakina St while Unit 2R, with a frontage to Great North Rd, is a 332.6sq m unit that could be split into two units of 166sq m,” Magill says.

“The two big retail showroom retail units have stud heights of 4.5m with floor-to-ceiling glass frontages and can be configured to suit occupier needs with fit-out packages available.”

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This retail building at 257 East Tamaki Rd, Otara, has five tenancies. Photo / Supplied

The ground floor lobby is at the centre of the two units and access is gained from Great North Rd and also off Turakina St.

Barragar says the new retail units have been completed to a bare shell basis and each comes with six secure basement car parks.

“Zoned Mixed Use under the Auckland Unitary Plan, these units have a high-profile on the city arterial route of Great North Rd – along with easy access to the motorway systems via nearby Newton Rd or Symonds St on ramps,”

Barragar says Grey Lynn is undergoing a strong rejuvenation as evidenced by the development of the Cider Building, Vinegar Lane complex, a Bunnings store and Giltrap Prestige luxury car sales and office building.

“This surrounding intensification will be a catalyst for stronger rental rates and capital appreciation, making this a great area to invest in,” Barragar says.

Another prime retail property in the portfolio at 257 East Tamaki Rd, Otara, is being marketed Rohan Cooke and Jane Chen, who are selling it by deadline private treaty closing at 4pm on Thursday November 16.

The 898sq m building on one title, is occupied by five tenancies on various lease terms and paying a total of $102,500 in annual rent plus GST. The tenants are Wholesale Meats Direct, Mum's Kitchen, a fruit and vegetable superette, a laundromat and the Holy Word Worship Church.

“This is a fully-leased, split- risk investment property with excellent visibility located on a main East Tamaki thoroughfare from Otara to Flat Bush and the future Ormiston Town Centre,” Cooke says.

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This unit at 23 Wainui Rd, Silverdale, was purpose-built for food grade manufacturing. Photo / Supplied

The freehold site of 2703sq m - plus an undivided one sixth share in a 1388sq m common area - has good on-site parking and a sealed yard.

Constructed in the early 2000s, the property fronts the southern side of East Tamaki Rd a short distance west of the intersection with East Tamaki Rd and Springs Rd. The land is zoned Business - Neighbourhood Centre Zone under the part operative Auckland Council Unitary Plan.

Chen says the building is dubbed The Tin Shed by locals due to its exterior of corrugated iron and Zincalume cladding. 

“This gives an unusual and somewhat austere outward appearance, although many tenancies oriented to East Tamaki Rd have a veranda formed by the curved roof and those fronting to the east have verandas over the front door entrances.”

Thirty kilometres north of Auckland, in the fast-expanding suburb of Silverdale, another prime retail property is for sale at 23 Wainui Rd on the corner of Wainui Rd and Silverdale.

“This freehold, food-grade, single-level unit has an excellent location by a main roundabout,” says David Goodhue who, with colleague Bruce Jiao, is marketing it for sale by auction, in Barfoot & Thompson’s Auckland CBD Shortland St rooms at 10am on Thursday November 16.

“Occupying one unit title and constructed in 2013, this property was purpose-built for food grade manufacturing with culinary preparation areas and chillers,” Goodhue says. “The total building area is 323sq m, which could be split into two tenancy areas.

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The freehold commercial property is for sale 742 Beach Rd, Browns Bay. Photo / Supplied

“Ideal for either an owner-occupier or investors, it is ready-to-go as a food manufacturing and retail outlet with the prospect of leveraging off the success of the nearby Millwater shopping centre and the new Highgate business park which are both just two minutes away.

“The retail unit is on the western side of Wainui Rd and the corner of Silverdale St where a main roundabout directs traffic to intersecting arterial routes leading to the Millwater residential district, Millwater shopping centre and the Highgate industrial district.

Jiao says Silverdale is one of New Zealand’s fastest growing catchments and is earmarked as a future commercial and retail hub for the Hibiscus Coast.

“The Millwater housing development, now well underway just to the northeast of the Silverdale mall, comprises about 3000 sections that will house over 10,000 residents. This location also services Orewa, Hibiscus Coast and Whangaparoa with easy access to the State Highway 1 motorway.”

Jiao says the well-known and popular Northern Union pub is next door with its opening hours from 11am to late that would complement another food-related business or restaurant.

“Nearby businesses include The Warehouse, a Countdown, Noel Leeming, Super Cheap Autos and a Mad Butcher. Farmers, Pascoes, and Stewart Dawsons will also be moving into the area.”

He says the immediate location of the unit will also be positively impacted by the significant infrastructure projects now underway - specifically the widening of Wainui Rd which will improve access to the Highgate industrial park.

Jiao, with colleague Gary Seekup, is marketing another North Shore commercial property at 742 Beach Rd in the popular seaside suburb of Browns Bay.

The 715sq m building on a freehold 1037sq m site, zoned Business Mixed Use, is for sale by tenders closing at 4pm on Wednesday November 15, at Barfoot & Thompson’s North Shore Commercial office in Hurstmere Rd, Takapuna – unless it sells earlier by negotiation.

“This is the first time this property has come on the market in many years,” Seekup says. “Its sale represents an opportunity for either an owner-occupier or investor to secure a commercial property with road frontage exposure, on a main arterial route, within one of North Shore’s most affluent suburbs.”

The property is divided into three separate tenancies. The rear tenancy of 359.26sq m is leased to an automotive company and the middle 204.4sq m tenancy serves as a medium-stud fabrics warehouse. 

The two tenancies generate a total of $47,034 per annum in rent while the road frontage office/showroom area 153.84sq m is currently vacant.

“The leases are below the market rental rate so there is the opportunity to boost the property’s income by restructuring leases closer to market values and leasing out the vacant tenancy,” Seekup says.

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Peter Churchill, Barfoot & Thompson Commercial