Bridgestone tenancy drives Napier appeal

Annual net income of approximately $175,217 plus GST, an established multinational tenant and scheduled rent reviews underpin a Napier investment offering, giving purchasers a defined income position alongside a substantial freehold landholding in Pandora.

The property at 36 Severn Street is fully leased to Bridgestone New Zealand, which has occupied the premises since construction in 2014. Its current six year lease runs to July 2030, with a further six year renewal option providing potential tenure to 2036.

Bayleys Napier’s Kerry Geange, together with Charlie Geange, is marketing the property for sale by deadline, closing at 4:00 pm on Wednesday, 28th October 2026 (unless sold prior).

Commercial broker and director Kerry Geange says the combination of passing income, an established corporate occupier and contractual rental reviews offer investors a clear starting point to assess the opportunity.

“The rental income is supported by a longstanding tenant relationship and premises that serve an identifiable operational need. Purchasers can assess the remaining lease term, review provisions and physical asset together, rather than relying on expectations of future market growth.”

The net lease provides for tenant payment of outgoings, with CPI reviews every two years and a market review upon renewal.

Bayleys’ Industrial Market Update Q3 2026 reports largely stable rents and selective investment demand, with purchasers focusing on strong locations, quality buildings and secure lease profiles.

Kerry Geange says those conditions place greater emphasis on how an individual property’s income is structured.

“When market rents are relatively steady, the distinction between contractual reviews and broader rental growth is meaningful. This lease provides a mechanism for adjustment during the term, allowing purchasers to examine that alongside funding costs and their investment horizon.”

The approximately 850sqm building occupies a 2,971sqm freehold site, with sealed yards at the front and rear, concrete aprons to the drive-through bays, and a secure fenced rear yard. Constructed in 2014, the building was assessed at 100 percent of New Building Standard.

Sales and leasing broker, Charlie Geange says the site’s outdoor areas contribute directly to its industrial functionality.

“For a vehicle-servicing business, access, circulation and usable yard space are integral to the property’s performance.

“Here, the building and concreted yards are considered as a connected operating environment. That functionality is relevant to both the existing tenancy and a potential investor’s longer-term assessment of the asset.”

Severn Street connects Pandora with Onekawa and the large-format retail area around Prebensen Drive. The location also provides access to the Hawke’s Bay Expressway, Napier Port, regional airport, CBD and Ahuriri.

Charlie Geange says this connectivity gives the location a practical relevance for businesses serving Napier and the wider region.

“Transport connections contribute directly to a property’s operational efficiency, making it easier for customers to reach the business and the occupier to service the wider region.

“At Severn Street, that accessibility is complemented by Bridgestone’s established occupancy and a lease that provides both current income and scheduled rental reviews. For investors looking beyond the initial yield, the opportunity to acquire premises with a demonstrated role in the tenant’s business and the landholding to support it over time.”