Room to move with Wellington CBD asset

A substantial value-add opportunity in the heart of Wellington’s CBD is now on the market, giving investors the ability to capture immediate rental uplift while pursuing broader strategic potential, backed by strong underlying fundamentals and a motivated vendor.

The property at 108 The Terrace was constructed in the 1960s as Cable Price Downer House and occupies a prominent 718sqm freehold corner site. The 10-level reinforced concrete building, comprising nine office floors plus a walkup penthouse, was strengthened to 75 percent NBS in 2019 and offers approximately 4,333sqm of lettable office space along with 20 secure carparks.

The building has benefitted from significant capital investment and extensive interior refurbishment over several decades, creating modern office environments with excellent natural light on all sides due to its central-core layout and dual street frontage. Most floors are currently partitioned into multiple tenancies, accessed via two lifts and dual stairways. The property has profile to The Terrace and Dalmuir Lane, a pedestrian link to Victoria University of Wellington’s Kelburn campus.

The asset’s vacancy profile provides clear headroom for rental growth, with projections indicating that more than $630,000 in annual net income could be realised through backfilling empty floors and undertaking targeted cosmetic upgrades. Most existing occupiers are on short‑term or monthly arrangements, creating flexibility for an incoming owner to reposition the building without protracted lease constraints.

The property is zoned City Centre and is for sale by tender closing Wednesday 29 July through Mark Sherlock and Paul Cudby of Bayleys Wellington Commercial.

Sherlock says the property stands out for its combination of location, scale, flexibility, and redevelopment pathways.

“This is an opportunity to acquire a substantial CBD building where the fundamentals are already working in favour of an incoming owner,” he says.

“Investors with a healthy balance sheet can move quickly, lift the income, and then consider wider possibilities. The layout lends itself to staged change, and the vendor is ready for a sale.”

Sherlock noted that while in demand as an office asset, the building’s configuration opens the door to alternative uses.

“The central core, natural light, and floorplate efficiency suggest strong potential for conversion to apartments, student accommodation, or even a boutique hotel,” he says.

“It’s not often you come across a building of this scale where both office and accommodation pathways remain open without extensive structural modification.”

The Terrace remains one of Wellington’s most sought‑after commercial addresses, offering direct access to Lambton Quay, Parliament, the motorway network, and major public transport routes, while also being within walking distance of the railway station and waterfront. The surrounding precinct includes high‑rise offices, hotels, apartments, and a wide range of hospitality operators, reinforcing the location’s long‑term appeal. Clifton Carpark sits immediately adjacent, providing additional convenience for tenants and visitors.

The property’s profile is expected to draw strong interest from buyers focused on repositioning assets in tightly held CBD locations. Its secure carparking, prominent frontage, and proximity to key transport links and amenities reinforce sustained demand, particularly among investors seeking scale and centrality in Wellington’s core commercial precinct.

“With clear options for income growth or redevelopment, the asset offers investors a substantial CBD holding with both demonstrable immediate uplift and longer‑term potential,” says Sherlock.