Tauranga office investment offers long-term income

The standout office premises housing a top national building company and a global recruitment giant are for sale in a commanding central Tauranga commercial location.

High-profile corner site on Tauranga’s Golden Mile

The comprehensively upgraded property now for sale through Bayleys sits in a high-profile corner position on the city’s Golden Mile, fronting key arterial Cameron Road.

Classic Builders anchors long-term lease income

The fully leased single-storey building is anchored by Classic Builders on a new 10-year lease, as the company’s new Tauranga flagship sales office and design centre. Further rights of renewal, if exercised, take the final lease expiry to 2060.

Founded in the Bay of Plenty in the 1990s, Classic is one of the country’s biggest residential builders with a reach extending from Queenstown and Canterbury to Wellington, Waikato, Auckland and Northland.

Adecco provides a second corporate tenancy

A smaller self-contained office tenancy is occupied by Adecco Personnel, a recruitment agency with branches in 60-plus countries, on a new three-year lease with two further three-year rights of renewal.

Billboard lease adds a third income stream

A 10-year lease with two further 10-year rights of renewal has been agreed, subject to consents, for a dual-screen advertising billboard above the building. This will command exposure to two lanes of traffic in both directions on Cameron Road, one of the city’s busiest arterial routes.

Diversified net rental income of approximately $244,000

The site will earn new owners a diversified total net rental return of approximately $244,000 plus outgoings and GST per annum.

Cameron Road property offered by deadline sale

The freehold land and building at 590 Cameron Road are being offered to buyers by deadline private treaty closing on Thursday 3 December (unless sold prior).

The sale is being marketed by family sales team Brendon, Ryan and Lynn Bradley of Bayleys Tauranga.

A-grade offices feature solar power and seismic strength

Brendon Bradley says the building with a net lettable floor area of 405 square metres (more or less) is underpinned by some 889 square metres of Commercial-zoned land, with 17 car parks.

“This impressive commercial property has undergone a comprehensive transformation to deliver A-grade contemporary office accommodation. Recent external improvements include installation of a new Colorsteel roof plus new aluminium joinery and glazing.

“The upgrades are complemented by a seismic rating of 90 percent of new building standard and enhanced energy efficiency, with the availability of onsite solar power.

“Combining substantial capital investment, first-class improvements, quality corporate occupiers, long-term income security, and a highly desirable location in one of New Zealand’s fastest-growing cities, this is a compelling opportunity for investors seeking a premium addition to their portfolio,” Brendon Bradley says.

Two modern office tenancies across 405sqm

The L-shaped building is configured with two modern, air-conditioned office tenancies, of some 333 square metres (occupied by Classic Builders) and 72 square metres (housing Adecco).

Ryan Bradley says the larger tenancy encompasses an open-plan reception/showroom area, five glazed partitioned offices and meeting rooms, and two storerooms, along with an open-plan rear office and staffroom, including modern kitchen and staff amenities.

The second tenancy comprises an open-plan office area with kitchenette and accessible toilet amenities.

“The building is complemented by a sizeable sealed rear parking area. Convenience is further supported by pedestrian access from Cameron Road, and dual vehicle access from Twelfth Avenue and a rear service lane,” says Ryan Bradley.

City-fringe location supports occupier demand

Lynn Bradley says the property and tenants benefit from a prime position in one of Tauranga’s most desirable city-fringe commercial precincts, surrounded by thriving commercial activity.

“Directly opposite is a well-established retail hub anchored by Woolworths, alongside big-brand food outlets such as Subway, Pita Pit, Domino’s and Burger Fuel, which generate foot traffic throughout the day. Other nearby occupiers include McDonalds, Hell Pizza, BNZ, and a Westpac Business Centre.

“Proximity to Tauranga Hospital, educational facilities and surrounding residential suburbs provides a broad and diverse customer catchment.

“Over recent years, Cameron Road been given a significant lift by Tauranga City Council's investment in transport and streetscape improvements. Upgraded intersections, enhanced pedestrian facilities, dedicated cycle infrastructure, improved landscaping and extensive water infrastructure upgrades have substantially improved the corridor's functionality and amenity,” Lynn Bradley says.