Auckland expo to promote regional commercial properties

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Auckland expo to promote regional commercial properties

Tags: Commercial

Strong interest from Auckland commercial and industrial property investors in offerings in other parts of New Zealand has prompted Bayleys Real Estate to undertake a regional commercial property expo in Auckland in early June.


The company will be showcasing properties from all around the country at its head office building in Auckland’s Viaduct Harbour on the afternoon and evening of June 9th.  Bayleys’ national commercial director John Church says while regional property expos have previously been undertaken by Bayleys in Auckland to promote residential properties from other areas, this is a first for the commercial and industrial sector.

“It is part of our focus on strengthening our national offering to commercial property vendors throughout New Zealand and is the result of the current high level of interest being shown by Aucklanders in commercial property opportunities in other parts of the country,” says Mr Church.

“It’s not a dissimilar to what is occurring in the residential market where very high prices in Auckland are forcing buyers to look elsewhere. Huge competition for a limited supply of well-located and tenanted commercial investment properties in Auckland is encouraging investors to seek out opportunities in other areas in this sector of the market as well. Good quality commercial offerings in provincial cities, as well as in Wellington and Christchurch, can in most instances be secured at a more affordable price and at a better initial income return than would be case for a comparable Auckland property.”

Despite the downturn in the dairy market, regional commercial and industrial property markets have been performing strongly and are expected to continue to do so, says Church.

Church says the ANZ’s latest quarterly regional trends economic overview, for the December 2015 quarter, shows quarterly growth rates for a number of provinces hitting multi-year highs, led by Taranaki (3.8%), the Bay of Plenty (3.2%) and Nelson-Marlborough (3.1%).

In the annual GDP figures for the 2015 calendar year, Gisborne took out took the top spot with 5.0% annual average growth, a 13-year high for the province. Growth in four other North Island regions was above the national average: Bay of Plenty (4.8%), Northland (4.3%) and Hawke’s Bay (3.3%) with Auckland showing 4.2% growth.

“So without minimising the hardship that many dairy farmers are experiencing at present, we appear to have developed much more diverse regional economies,” says Mr Church. “Other agriculture sectors such as beef, horticulture – and in particular kiwifruit and apples – as well as viticulture are currently performing well, helped by a drop in the $NZ-$US exchange rate over the past 12 months. Record tourism and net migration numbers are also benefiting regional New Zealand.

“All these factors are having a positive impact on most provincial commercial property markets and are resulting in some excellent outcomes for vendors”.

Recent sales of North Island properties to Auckland investors include:

  • A 629m2 showroom and warehouse on a 1,171m2 CBD site at 32 Waikato Street, Taupo leased to Corys Electrical sold for $1,360,000 at a 6.2% yield through Gary Harwood, Bayleys Taupo and  Mike Houlker, Bayleys Auckland
  • A modern two level office building at a 36 Kereiti Street, Mt Maunganui leased to Spark Digital sold for $2,450,000 at a 6.4 per cent yield through Brendon and Lynn Bradley and Matthew Gibbard,  Bayleys Tauranga.
  • An 883 sq m multitenanted industrial building on a  1,702sq m  site at 47 Chambers Road, Tokoroa sold for $500,000 at a 9% yield through Brendon Bradley, Bayleys Tauranga

Church says more regional vendors are taking advantage of increasing Auckland investor interest in provincial offerings, with 64 of the 98 properties featured in Bayleys’ latest national Total Property commercial and industrial portfolio being from outside of Auckland.

The regional commercial property expo has been timed to coincide with release of the next Total Property to promote regional properties in the portfolio. It will be held on the ground level of Bayleys’ central Auckland premises at 4 Viaduct Harbour Avenue from 4pm to 8pm on Thursday, June 9.

Exhibition stands will be manned by Bayleys commercial representatives from around the country and there will also be presentations on regional economies and property markets by NZIER and Bayleys Research. Auckland investors interested in attending the expo can register their interest at www.bayleys.co.nz/regionalexpo.

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