A well-proportioned building with character and future upside in Kaiwharawhara is for lease or sale as the current tenant prepares to vacate the property with its lease ending 30th September 2024.

The distinctive property at 12-14 Kaiwharawhara Road, around 100m west of its intersection with main arterial, Hutt Road, has been home for many years to interior design business Backhouse Interiors. It has utilised the versatile high-stud building as an upmarket retail showroom, optimising the full height road-front windows to showcase products and with the street-side loading dock allowing drive-in access to the roller-door fronted warehouse.

There are partitioned offices located to the back of the building, warehouse storage and a modern kitchenette and bathroom facilities. The 425sqm building spans the flat 417sqm site on the northern side of Kaiwharawhara Road, which is now zoned Mixed-Use under Wellington Council’s Proposed District Plan 2024.

Grant Young and Fraser Press of Bayleys Wellington Commercial are marketing the property via a tender process closing 10th July with offers sought from both buyers and prospective tenants.

Young says the owner-occupier market is very active in the capital as rents are still holding fast and better value and future capital appreciation can often be achieved through ownership.

“Our discussions with lenders suggest that the banks are favouring owner-occupiers over investors currently which provides great opportunity for well-capitalised businesses to secure a property that will future proof their operation without being at the whim of a landlord.”

“This property is multi-functional with proven credentials as a high-end showroom, with excellent natural light, an open working environment, and a good balance of amenity, office and warehousing. The high stud also provides mezzanine potential.”

“As such, it will also resonate with investors that recognise low vacancy in the Kaiwharawhara area, underpining the desirability of the property, and with potential tenants who will see scope to position themselves in a well-performing location.”

The Mixed-Use zoning allows for development to a height of 15 metres, which opens the door to future redevelopment and adds another layer of confidence for buyers, giving a new owner the opportunity to optimise the site over time given this favourable zoning overlay.

The current annual net rental of circa-$100,000 net per annum is reflective of today’s leasing market and Young says the vendors would consider retaining the property and entering into a lease with a new tenant if a suitable contender comes forward.

“There’s a wide range of showroom users, office suites, service providers, retail and trade sales, plus warehouse, workshop and storage in the immediate area so an incoming business would be in good company,” says Young.

“Close by in Hutt Road, heavyweight retailer Spotlight is planning a new supersized premises on the vacant site adjacent to their current store, while other brands in the neighbourhood include Tile Warehouse, Continental Cars BMW, and Animates.”

Kaiwharawhara Road has effectively become an extension of the retail-focused Thorndon Quay and provides easy access to the CBD, along with streamlined northward connectivity to State Highways 1 and 2.

Click here for more information on the listing.