Three for sale in "funky Victoria Quarter"

Concerns about the sustainability of the commercial property market are overstated, says John Urlich, commercial manager for Barfoot & Thompson commenting on the launch of the agency’s first Insite commercial property portfolio for 2018.

Urlich says the commercial property market remains buoyant and for good reasons.

Supply-side constraints continue to impact on the commercial property market as do other aspects of the economy; and vacancy rates remain at historic lows.

The lesser availability of trade bank finance continues to challenge many seeking to increase their property positions, while owner-occupiers especially, are struggling to find productive property in the low vacancy environment.

When these supply-side constraints are coupled with the population projections for Auckland in particular, it is unlikely demand for quality land and buildings will decrease in the medium term,” Urlich says.

He says it is still possible to achieve a solid gap between bank saving rates and the net yield for most quality commercial properties.

Accordingly, investor demand is similarly strong which is partly due to the fact that we are starting to see signs of increasing pressure on rentals. The leasing front is still characterised with a shortage of accommodation options being available for prospective tenants.


Live-work space

Well-presented office space at 10 Adelaide St could also be converted to a residence. Photo / Supplied

Currently leased out as a business premises, a boutique freehold unit for sale in Auckland’s Victoria Quarter would suit a forward-thinking owner-occupier or investor looking for a foothold in this popular central area.

Barragar is selling the unit at 10 Adelaide St, through a deadline private treaty process, closing on February 23 (unless sold earlier).

Barragar says he’d like to list a lot more properties of this type, but they’re relatively hard to find.

“It’s a freehold unit of 106sq m, with large windows, high ceilings, excellent natural light and parking provided at the front. The option is there to invest or occupy this immaculately presented office space, while exploring the future upside to convert to residential or live/work space.”

The 2017 rating valuation was $650,000; body corp contributions are now set at about $3387 and rates are set at about $4630.

The property now earns $44,969 net per annum, but can be offered with vacant possession by negotiation.

“This unit has a prominent frontage onto Adelaide St, being set back from the road with — at the front — a single carpark allocated to the property, plus others shared with the rest of the complex. The total area of 106sq m comprises 69sq m downstairs and 37sq m on the mezzanine level.

“There is excellent presentation with polished wooden floors and separate toilet and kitchen facilities. The open-plan mezzanine level is carpeted and has good natural light.”

The seismic rating is A-plus (at 129 per cent of NBS). It is zoned Business City Centre.

“I see so many possibilities here — above all the opportunity to secure an entry level freehold investment in the prestigious and rapidly evolving Victoria Quarter,” Barragar says. “Nearby are some of the most high-end suburbs of Auckland — there’s all the buzz of the city, bars, restaurants, access to public transport and the beauty of the nearby maritime environment along the city’s waterfront.”

Victoria markets

Unit 1C, at 52 Sale St, has a generous 5m stud. Photo / Supplied

Meanwhile, following a recent fit-out a former horse stables dating from the early 1900s is also for sale in the neighbourhood.

Barragar says the 214sq m unit at 69/210-218 Victoria St West is located on Level 1 in the Victoria Park markets.

It can be accessed either off Drake St, or from within the markets.

“Rectanular in shape, and resplendent with a near new fit-out this unit is predominantly open plan with separate offices. There is a boardroom, two toilets (one with a shower) and a kitchen break-out area. And as people familiar with the Victoria markets will know, the attractive brickwork is a real feature of this property.”

Located in an area zoned Business-City Centre, the freehold property has a 2017 rating valuation of $1,080,000. Body corporate contributions are currently set at $16,692 and rates at $7,902. The property is being offered with vacant possession, says Barragar.

“This is a very convenient and desirable location, in a part of town really coming into its own.”