Agents say this provides the opportunity for a new owner to leverage the significant capital investment made in the property including a complete refurbishment which upgraded foyers, lifts, lighting and bathrooms across the building and also incorporated high-threshold seismic strengthening works.
Occupying a prominent Central Area-zoned 587-square metre site on the southern side of Willeston Street running off Jervois Quay and just 200 metres from Lambton Quay’s Golden Mile, the 11-level building with two podium floors and nine tower floors, was built in the late-1980s.
With a lettable area of 3,683 square metres, the building is currently around 80-percent leased, with vacancy across several floors giving rental upside, which, in a market that is short of buildings with an A-grade seismic rating, should find traction with business operators.
The property returns a net income of $586,387 per annum with potential net income of $936,730 if fully-leased. The existing tenants are on varying lease terms, many with rights of renewals.
The building is occupied by a wide range of office occupiers including the Egyptian Embassy, Royal New Zealand Ballet, Australia New Zealand College of Anaesthetists and Dell EMC with naming rights.
There are sea views from most of the floors, looking across Frank Kitts Park to the harbour, and there are four car parks associated with the building.
Dell EMC House is being marketed by Mark Sherlock and Grant Young of Bayleys Wellington Commercial with tenders closing 4pm Wednesday 27th October.
High quality office space in the capital has a vacancy rate of sub-five percent, with pressure on available leasing stock dictated by the seismic integrity demanded by tenants and prescribed by the Ministry of Business Innovation and Employment.
“In 2019, Dell EMC House had a seismic upgrade in line with C5 guidelines, bringing it to 85 percent of new building standard,” explains Sherlock.
“This provides confidence for its longstanding tenants and elevates its worth and desirability in the current leasing market.
“Additionally, every tenancy in the building has undergone a complete refurbishment making it one of the best we’ve seen in the capital – this is a mint property and represents significant value and opportunity in the hotly-contested sub-$15 million commercial property market.”
There is full air conditioning and fire sprinklers to all levels, quality staff amenities, and end-of-trip facilities on the ground floor to cater to active commuters and lunchtime exercisers.
The land occupied is Wellington City Council leasehold which is not uncommon for properties on the flat near the waterfront in the capital. The lease is perpetually renewable on 21-year terms with no mid-term rent reviews. The current lease runs for another 12 years before renewal/review.
Sherlock says the Wellington office market has proven to be resilient throughout the pandemic environment, largely underpinned by the government sector.
While there has been some consolidation of space by certain occupiers, there has been no wholesale exit by any segment of the office market.