Market fundamentals are shifting as the current property cycle tapers off, blending into the early signs of the upswing. recent auction activity across Bayleys’ latest Total Property portfolio shows buyers eager to stay ahead of the curve. Yields remain mixed; however, prime urban areas offer competitive returns, while industrial properties in growth regions continue to attract strong investor interest.

 

AUCKLAND

Unit 6, 115 Felton Matthew Avenue, St Johns: 68sqm retail unit with shared car parking in a popular neighbourhood complex, sold for $525,000 at a 6.86% yield. Occupied by a sushi store with a new four year lease plus renewal rights, the favourable lease terms provide a personal guarantee and rental bond. The complex is positioned to benefit from an evolving residential catchment. (Matt Lee, James Chan, Bayleys Auckland)

371 Dominion Road, Mount Eden: 581sqm multi-tenanted commercial premises plus 14 car parks sold for $3,200,000 at a 5.70% yield. The 974sqm site on the corner with King Edward Street is zoned Business – Local Centre, which provides future development potential for mixed-use densification to 13m. New Zealand Post, KiwiBank and a print store occupy the ground floor, while private individuals with varied lease arrangements tenant the upper level and car parks. (Mike Adams, Quinn Ngo, Karen Yung, Bayleys Auckland)

Unit G1, 158 Onehunga Mall, Onehunga: Brand new 132sqm commercial unit on the ground floor of an eight level mixed-use complex, Onehunga Mall Club, sold to an investor for $1,050,000 at a 7.62% yield. The premises features a polished industrial aesthetic and a prominent road-front position gaining exposure to passing vehicle and pedestrian traffic. An established pilates franchise is in occupation with a six year lease and renewal rights. (Phil Haydock, James Were, Bayleys Auckland)

WAIKATO/BAY OF PLENTY

33 George Street, Tuakau: 520sqm multi-tenanted commercial premises on the corner with Madill Street, sold for $750,000 at an 8.72% yield. The 823sqm site with a seismic assessment of 20 percent of NBS is located at the southern entrance of the Tuakau Village. Three tenants with varied lease arrangements, occupy the premises, including a café/bakery, real estate office, and a tyre shop. The property is positioned to benefit from continued development of the North Waikato region and strength in the Upper North Island’s Golden Triangle economic hotzone. (Mike Hook, Bayleys South Auckland)

99 Broadway, Matamata: Modern commercial premises totalling 352sqm purpose-built in 2020 as three retail units, and subsequently adapted for the growing needs of an anchor occupant sold for $2,080,000 at a 5.81% yield. The 400sqm site on a prominent corner with Tainui Street is occupied by national audiology service Triton Hearing which has a lease to 2029 plus 2x3yrRoR, and a Mediterranean restaurant/bar with a lease to 2026 and 2x6yrRoR. (Josh Smith, Bayleys Hamilton)

14 King Street East, Te Kuiti: 838sqm multi-tenanted commercial premises sold for $655,000 at a 7.47% yield. The 711sqm site on the corner with Taupiri Street provides rear access via a service lane where there is car parking for ground floor tenants and a substation leased for 21 years by The Lines Company. Four tenants occupy five tenancies, including The Muster Bar with gaming facilities, which has a three year lease and 3x3yrRoR for a 371sqm ground floor footprint. A café, clothing retailer, and two units upstairs – one of which will be sold with vacant possession - comprise the balance of the accommodation, which has a seismic assessment of 34% of NBS. (Josh Smith, Bayleys Hamilton)

8 Simsey Place, Te Rapa: Modern 455sqm industrial premises comprising offices and amenities over two levels, cool storage/food processing facilities, and drive-around yard, sold for $1,455,000 at a 7.56% yield. The 1,086sqm site is located at the end of a cul-de-sac amongst known trade and logistics brands. National wholesale food distributor Service Foods occupies the premises with a new five year lease and favourable lease provisions, including annual rental growth to CPI. (Jordan Metcalfe, Rebecca Bruce, Bayleys Hamilton)

281E Fraser Street, Tauranga Central: 253sqm industrial unit, plus six car parks, sold with vacant possession for $750,000. Positioned at the front of a multi-tenanted complex of seven units, the property features ground-floor warehousing and an office/showroom, with a self-contained mezzanine with separate pedestrian access and amenities. The versatile space is suitable for a range of users, including retail, office, wellness and warehousing, with the added potential to sublease the mezzanine. (Christy Arundel, Rory Brown, Ivy Shen, Bayleys Tauranga)

LOWER NORTH ISLAND

130 Nelson Street, Petone, Wellington: 258sqm industrial unit plus three car parks sold with vacant possession for $895,000, reflecting 5.68% on a potential net yield. The property features a large forecourt with high-stud warehousing, amenities on the ground floor, and a mezzanine office. (Ethan Hourigan, Paul Cudby, Bayleys Wellington)

Unit 13, 16 Jamaica Drive, Grenada North, Wellington: 170sqm commercial unit in the Grenada Business Park sold with vacant possession for $510,000 reflecting 7.25% on a potential net yield. The well-tenanted property comprises an equally balanced office-to-warehouse configuration with a ground floor reception and amenities. High-stud warehousing is supported by additional mezzanine office accommodation. (Fraser Press, Simon Butler, Bayleys Wellington)

SOUTH ISLAND

17 Hawdon Street, Sydenham, Christchurch: 160sqm industrial unit, plus three car parks, sold with vacant possession for $470,000. The Industrial General zoned premises comprises offices and a showroom over two levels with 90sqm of high-stud warehousing and a container height roller door, with a seismic assessment of 67% of NBS. (Steven Schwalger, Graeme Donaldson, Bayleys Christchurch)