Income-backed office with 40-year track record

A prominent standalone office building at the centre of Hamilton’s CBD is being brought to the market for the first time in four decades, offering investors a well-balanced income stream underpinned by national tenants, strong geographical fundamentals and future flexibility within a maturing regional centre, Bayleys brokers say.

Bayleys Commercial Sales and Leasing specialist, Darren Anderson, is marketing the leasehold interest in the property at 240 Tristram Street, which is being offered for sale by auction on Thursday, 21st May 2026 (unless sold prior).

Positioned on a 1,905sqm (more or less) site with a 916sqm office premises, the asset combines scale, accessibility and profile – attributes increasingly sought-after as investors recalibrate toward defensive income in well-located regional markets.

Returning a net rental of $173,420 per annum plus GST and outgoings (net of the ground rent), with two percent annual rental increases outside of market reviews on the primary tenancy, the income is underpinned by two government-aligned, community-focused organisations delivering health and social services.

The tenancy profile reflects a broader trend toward ‘needs-based’ occupiers, with government-linked and community service organisations continuing to demonstrate strong covenant strength and long-term occupancy patterns, particularly in regional centres where demand for accessible, well-located office space remains consistent.

Ka Puta Ka Ora Emerge Aotearoa occupies 507sqm (more or less) on a six-year lease to October 2029, with renewal rights extending potential tenure through to 2035, while Sexual Wellbeing Aotearoa has maintained a presence in the building since 2009 – an indicator of both location suitability and tenant commitment.

Anderson says the offering sits within a wider shift in the office sector, where investors are increasingly focused on total occupancy cost, tenant quality and building functionality, rather than viewing performance through a single growth lens.

“Assets that combine reliable income with practical functionality are gaining traction, particularly in regional cities like Hamilton, where affordability, connectivity and population growth are supporting sustained occupier demand.”

The building itself is configured across two levels with a versatile layout suited to a range of professional and service-based tenants. Recent refurbishment to the first floor enhances efficiency, while natural light on all four sides of the building provides high-quality working environments – increasingly valuable for occupiers in post-pandemic decision-making.

A key point of difference is the substantial on-site parking provision, with 39 car parks complemented by strong on-street availability.

Located on a main arterial route, the property benefits from excellent connectivity across Hamilton, with proximity to transport links, civic amenities, and recreational anchors, including Seddon Park and FMG Stadium Waikato, reaffirming its central position within the city’s commercial fabric.

Hamilton itself continues to consolidate its role within New Zealand’s ‘Golden Triangle’, benefiting from population growth, infrastructure investment, and its strategic position between Auckland and Tauranga. This has translated into steady demand for well-located commercial assets, particularly those offering a blend of income security and repositioning potential.

With a Weighted Average Lease Term (WALT) of approximately two years, the property also presents a degree of leasing upside, enabling incoming owners to actively manage tenancy and rental growth over the medium term.

Having been held by the current owners for four decades, the sale represents a generational transfer of a proven, performance asset, Anderson says.

“Opportunities of this nature – combining long-term ownership history, consistent returns, and future flexibility- are increasingly difficult to replicate. For investors seeking a foothold in a resilient regional market, this is an asset that offers both immediate income and the ability to shape its next phase.”