Two levels of modern commercial accommodation tenanted by established educational institutes will provide investors with a top-drawer, passive investment opportunity.
Totalling 840sq m (more or less) of well-presented offices in Newmarket’s premier business district, the properties at 178 Broadway are well-positioned to benefit from surging tenant demand given the limited supply of quality properties in desirable locations.
Owen Ding of Bayleys Auckland says levels two and three offer an opportunity to own premium workspace in one of the city’s most sought-after commercial areas.
“Rental rates for prime office accommodation continue to hold firm, and the potential for value uplift - particularly rental growth - is supported by the diminished capacity of developers to bring new projects to the market.
“In the variable economic climate, stable rental income is a valuable commodity, and investors will appreciate the attractiveness of these assets being enhanced by growth capacity in a thriving and affluent business community.
Mr Ding is marketing the premises for sale with Bayleys colleague James Chan.
The properties will be sold by auction at 11.00 am on Wednesday, 17th May 2023 (unless sold prior).
Comprising 415sq m (more or less) of modern office accommodation, level two is occupied by workforce educator Industry Training Auckland, which has a four year lease to September 2026. The lease generates an annual net rent of $98,720 plus outgoings and GST.
One floor up at level three, 425sq m (more or less) of net lettable floor area features spacious offices with conference rooms and amenities, which are tenanted by a private training organisation with a lease returning $117,950 net pa plus outgoings and GST.
Premier Institute of Education provides post-secondary education courses in various disciplines including hairdressing, business and the English language.
The organisation occupies the unit with a six year lease to September 2024, and two further renewal rights of three years each, plus fixed annual rent reviews of two percent.
Bayleys Auckland’s director of International Sales, James Chan, says the properties provide a flexible investment opportunity with established tenants generating an immediate income.
“The new purchaser may be a passive investor or an occupier exploring their mid-term options, perhaps investigating a move to more centrally-located premises given strong growth fundamentals.
“The multi-unit building features a Business – Metropolitan Centre zone under the Auckland Council’s Unitary Plan, which applies to centres which are second only to the city’s central business district in overall scale and intensity.
“This zoning allows a wide range of residential and commercial uses for buildings up to a height of 32.5 metres, broadening the scope for occupancy once the current leases expire.”
Mr Chan says Newmarket is one of Auckland’s major growth locations, with large areas recently upzoned by Auckland Council directives to encourage more substantial development and intensify existing structures.
“Newmarket is the benefactor of an enormous urban transformation, becoming one of the country’s leading mixed-use precincts supported by the substantial redevelopment of Westfield Mall on Broadway, a variety of high-quality residential offerings, and the delivery of industry-leading commercial assets such as Mercury Energy’s nearby headquarters.
“The units are positioned to allow easy access to major traffic routes, motorway connections, and existing bus and train services at both the Newmarket and Grafton stations.
“The completion of the City Rail Link – New Zealand’s most substantial infrastructure investment to date – will further enhance the business growth potential of the local area,” he says.