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City centre vacant commercial space speaks to owner-occupiers

A real shortage of vacant commercial stock in Wellington has left prospective owner-occupiers with very little to choose from which explains the strong enquiry agents are fielding on a well-positioned property in Te Aro, soon to be-vacated by nut butter manufacturer, Fix and Fogg.

The freehold standalone industrial building at 11 Walter Street was built circa-1986 and is in tidy, well-maintained condition.

It is currently configured as a blend of food-grade production space and warehousing with roller door access, upgraded male and female ground floor bathrooms, modern offices plus amenities including updated staffroom and kitchen on the mezzanine first floor, and three dedicated off-street parking spaces to the street frontage.

The property occupies a flat 406sqm site and has a total floor area of 514sqm with 193sqm of high-stud warehousing, 70sqm of showroom space and total mezzanine space of 187sqm with good natural lighting to the office component.

Previously, the property was home to home furnishing business The Cotton Store so there is potential to return the ground floor area to a mix of retail showroom, storage and office.

The building is for sale by tender closing Wednesday 13th March, through Mark Walker and Sarah Lyford, Bayleys Wellington Commercial.

The strategic location off Vivian Street (State Highway 1), between Victoria and Cuba Streets, with ready access on and off the motorway system makes for a vibrant and accessible address for staff and clients, and this is an area that is always in high demand according to Walker.

“It’s considered a prime Te Aro location with easy motorway and city access streamlining business efficiencies and making it appealing for the attraction and retention of employees.

“Owner-occupiers are active in the current market, but vacant city and fringe commercial space is really hard to come by as most of the stock has been leased up for the near to medium future.”

“Some owner-occupiers are resorting to purchasing properties that have shorter lease terms and riding it out until expiry simply to secure optimal space for their own business to transition to – which is not always practical.”

Walker said despite lingering interest rate uncertainties, banks are looking favourably on successful business owners seeking to buy their own premises.

“In many cases, banks prefer to lend to owner-occupiers over pure investors so that bodes well for the sale of this property.

“A well-presented building with off-street parking in a quiet location ticks multiple business boxes and this is the ideal way for a business owner to say goodbye to a landlord and take back control over their physical working environment.”

A Detailed Seismic Assessment (DSA) conducted in 2018 by Novare Design Limited concluded that the majority of the building achieves a new building standard (NBS) rating of more than 85%, with just part of the timber mezzanine at 50% NBS.

The property has Central Area zoning which allows development to a maximum building height of 27 metres.

A rental assessment suggests potential net income of $144,000 per annum plus GST would be achievable for an investor buyer.

Walker said Walter Street offers a mix of small warehouse/workshops, service retail and ground floor retail commercial premises, many with residential apartments above.

“Being just 100 metres to the Cuba Street precinct underpins the appeal and value of this property.

Victoria and Massey Universities are also within easy walking distance and other nearby amenities include a newly-opened Fresh Choice supermarket, Liquorland plus multiple bars, cafes, and restaurants.”

Click here for more information on the listing.

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