Tag Archives | Colliers

2 warehouses sell at yields under 5.2%

2 warehouses in Penrose & Mt Wellington were sold on firm yields at Colliers’ auction yesterday – 4.79% on the Greenpark Rd property (pictured) and 5.17% in Mt Wellington.

A third property, a mix of office & warehouse used for clothing storage but offered vacant, attracted no bid but was under negotiation post-auction.

Isthmus east

Mt Wellington

7A Te Apunga Place:
Features: 3012m² site zoned light industrial, 732m² net lettable area – warehouse 472m², storage 144m², office & amenities 116m², tenant Visor Distributors (2017) Ltd
Rent: $120,000/year net + gst, new 6-year lease from 30 June, 2 3-year rights of renewal
Outcome: sold for $2.32 million at a 5.17% yield
Agents: Hamish West & Todd Kuzmich


33C Falcon St, unit 3D:
Features: 643m² office & warehouse offered vacant – offices 299m², amenities 22m², storage 44m², warehouse 249m², loading bay 29m², 5.25m stud in warehouse, roller door, 12 stacked parking spaces, one in open
Outcome: passed in, only bid was from vendor at $2 million
Agents: David Burley & John Davies


4-6 Greenpark Rd:
Features: 1160m² site zoned light industrial, 584m² net lettable area – warehouse 317m², offices & amenities 102m², showrooms 166m², canopy 8m², tenant Vesta Electrical Supplies Ltd
Rent: $78,000/year net + gst, initial lease term expires 30 April 2021, 2 4-year rights of renewal
Outcome: sold for $1.63 million at a 4.79% yield
Agents: Paul Jarvie, Brad Johnston & Matt Prentice

Attribution: Auction.

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2 industrial leases & a sale

Colliers agents have leased a large new Goodman Property Trust warehouse in Penrose, an Avondale industrial property and sold an Invercargill warehouse.

Isthmus east


Gate Industry Park, 395 Church St:
Features: 6723m² industrial property – warehouse 4223m², stud height 9m, warehouse amenities 333m², enclosed canopy 941m², air-conditioned offices 1226m² over 2 floors, yard 2300m², 55 parking spaces, leased by Goodman Property Trust to Easy2C Ltd for a term of 5 years & 3 months
Rent: $600,726.20/year net + gst
Agents: Andrew Hooper & Greg Goldfinch

Isthmus west


17-19 Patiki Rd:
Features: 4878m², leased to Glidepath Ltd
Rent: $620,000/year net + gst     
Agents: Dwayne Warby & Shoneet Chand

South Island


5 Liddell St:
Features: 1827m², warehouse & showroom leased to Ideal Electric Ltd
Outcome: sold for $1,001,500 at a 7% yield
Agents: Mark Simpson & Rory O’Donnell

Attribution: Agency release & promotional material.

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Research shows further drops in industrial vacancy & yields

Auckland industrial property vacancy has fallen from what was a record low of 2.2% a year ago to 2.1%, according to Colliers’ annual industrial market indicators report, released on Wednesday.

The agency’s national director of research & consulting, Alan McMahon, said: “Demand from both tenants & owner-occupiers has been consistently strong over the past year as businesses continue to expand off the back of a strong economy.”

That’s been matched by a shortage of good quality opportunities, driving up prices and reducing yields further.

“Auckland continues to be a huge success story, but we’re also seeing strong performance in smaller centres. In Tauranga, the industrial market is experiencing record low vacancy, while in Hamilton, prime vacant space is being absorbed almost as soon as it becomes available.

“It comes as no surprise that record low yields, high rental growth and strong capital appreciation have been the main outcomes.”

Industrial national director Greg Goldfinch said demand was increasing for higher quality, larger footprint buildings, often resulting in businesses seeking design-build premises due to the lack of existing stock: “We recently brokered the largest design-build deal the market has seen in recent years, with Bunnings Warehouse commissioning a new 20,500m² distribution centre at Auckland Airport.

“Smaller industrial premises also remain sought after, with continuous demand over the last 12 months.”

He said about 185,000m² of new industrial development had been completed in Auckland over the last year, and another 120,00m² was under construction: “New supply is basically playing catch up with excess demand, rather than tipping the scales towards oversupply. “In fact, favourable conditions are fuelling speculative development, so we’re expecting further prime stock to be built in the coming year.”

However, land around Auckland that could be developed for industrial use was still hard to find. 82ha was absorbed in the year to November 2016, one of the fastest rates of land take-up since the global financial crisis: “This scarcity, combined with surging building costs, has led to significant pressure on rents, which is expected to continue in the short to medium term.

“Average prime warehouse rents are up a fraction at $119/m², but the real movement is in secondary rents, which have increased to an average of $98/m², up from $91/m² a year earlier.

“Average prime yields are now 5.8%, down from 6.1% a year earlier, while secondary yields have dipped from 7.2% to 7%.”

In Wellington, demand from both tenants & owner-occupiers has also grown. Mr McMahon said Wellington had a record low vacancy rate of 2.9%, down from 3.6% a year ago: “Rents are increasing across the board, while yields have fallen in both the prime & secondary sectors.”

In Christchurch, prime industrial supply was tight, and demand was concentrated on efficient high stud premises. Prime yields had fallen from 7% a year ago to 6.8%.

Mr McMahon said increasing land values & construction costs would moderate the amount of new industrial development in some centres in the short to medium term, keeping vacancy rates low: “The lack of stock means sales levels have eased since last year, but yields are not expected to go too much further south over the next 12 months.”

Auckland industrial averages:

Average warehouse net rent: $109/m²
Average office net rent: $208/m²
Average yield: 6.4%
Vacant industrial-zoned land: 761ha
Average land value: $472/m²

Attribution: Colliers report & release.

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Updated: National spread of commercial sales for Colliers

Published 5 September 2017, updated 7 September 2017:
Colliers agents have reported a spread of sales from Riverhead & Silverdale in the north of the Auckland region, through Napier and down to Cromwell & Invercargill. Changed details about the Silverdale property are shown immediately below.



Corrected: 164 Foundry Rd:
Features: 2500m² secure fenced yard – 603m² warehouse, 189m² office & amenities, additional covered storage area, leased to Go-Bus Transport Ltd [originally written as a 3610m² warehouse, no mention of other parts of the property]
Rent: $220,000/year net + gst
Agents: Jimmy O’Brien, Ryan de Zwart & Josh Coburn



1047-1049 Coatesville-Riverhead Highway:
Features: 1652m², 2-tenant new retail development
Rent: $281,933/year net + gst
Outcome: sold for $5.175 million at a 5.45% yield
Agents: John Davies & Jimmy O’Brien

South of the Bombays

Hawke’s Bay


47 Petane Rd:
Features: 6439m², hotel + caravan park
Outcome: sold for $1.41 million, at an 8.5% yield
Agents: Reuben George & Dan Walker

South Island

Central Otago


27 McNulty Rd:
Features: 2652m², commercial site leased to Caltex
Outcome: sold for $905,000, at a 6% yield
Agents: Mark Simpson, Rory O’Donnell & Dean Collins

29a McNulty Rd:
Features: 4906m², tenanted industrial property
Outcome: sold for $1.625 million, at a 6.45% yield
Agents: Mark Simpson, Rory O’Donnell & Dean Collins

31 McNulty Rd:
Features: 5618m²,  tenanted industrial property
Outcome: sold for $1.945 million, at a 6.4% yield
Agents: Mark Simpson, Rory O’Donnell & Dean Collins



5 Liddell St:
Features: 1827m², commercial investment leased to Ideal Electric         
Outcome: sold for $1,001,500, at a 7% yield
Agents: Mark Simpson & Rory O’Donnell

Attribution: Agency release.

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Henderson industrial unit sells at 5.6%

A roadfront unit in a 15-unit industrial block on Te Pai Place, between Lincoln Rd & Central Park Drive in Henderson, was sold on a 5.59% yield at Colliers’ auction today.



20 Te Pai Place, unit 1:
Features: 650m² unit split into 3 separate tenancies, onsite parking for 18 cars, 100% seismic rating
Rent: $70,450/year net + gst       
Outcome: sold for $1.26 million at a 5.59% yield
Agents: Euan Stratton, Matt Prentice & Dhiru Patel

Attribution: Auction.

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Silverdale lease

Colliers agents on the Shore and in South Auckland were involved in securing the agency’s latest Auckland result, a Silverdale industrial lease.




168 Foundry Rd:
Features: 3319m² sealed fenced yard, leased to scaffold company
Rent: $93,900/year net + gst        
Agents: Colliers North Shore & Highbrook offices

Attribution: Agency release.

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Retail units sell on Broadway and in Hamilton & Hastings

Colliers agents have sold 2 ground-floor retail units at 255 Broadway in Newmarket (pictured), and 2 retail properties in Hamilton & Hastings.

Isthmus east


255 Broadway, unit G2:
Features: 508m² retail unit, 9-year lease to Macpac Ltd runs until 2023, includes 4%/year fixed increases
Rent: $390,000/year net + gst     
Outcome: sold to a Christchurch-based investor for $6.725 million at a 6.25% yield
Agents: John Davies & David Burley

255 Broadway, unit 3:
Features: 106m² retail unit, leased to Partridge Jewellers
Outcome: sold to an offshore investor for $4.58 million at a 4.5% yield
Agents: John Davies & David Burley

South of the Bombays

Hawke’s Bay


905 Heretaunga St West:
Features: 1039m² site, 500m² retail development, 3 tenants, 10 parking spaces
Rent: $101,242/year net + gst
Outcome: sold for $1.3 million at a 7.8% yield
Agent: Danny Blair



265 Clyde St:
Features: 1.2276ha site, 5446m² shop tenanted by The Warehouse
Rent: $650,000/year net + gst     
Outcome: sold for $8.55 million + gst at a 7.6% yield
Agents: Mark Brunton & Alan Pracy

Attribution: Agency release.

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2 Shore leases signed

Colliers North Shore agents have signed 2 new commercial leases in Birkdale and in Albany.




7 Henry Rose Place, unit D:
Features: 125m² office & 345m² warehouse leased to CDK Stone NZ Ltd
Rent: $75,000/year net + gst
Agents: Ryan de Zwart, Sam Sherning & Mike Ryan


4 Verbena Rd:
Features: 389m² warehouse leased to Vincent Payne Design Ltd
Rent: $30,000/year net + gst
Agents: Euan Stratton & Sean Honeycombe

Attribution: Agency release.

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Otago merger takes Colliers into residential

Colliers will get its first specialist residential real estate division in New Zealand through the merger of its Queenstown franchise with local residential agency Hoamz Ltd.

The new company, Otago Realty Holdings Ltd, will operate from offices in Queenstown, Wanaka & Dunedin as a franchise of Colliers International NZ Ltd from a target merger date of 1 November.

Colliers Queenstown managing director Alastair Wood, who will head the new company, said it would build on both brands’ strengths and offer specialists in residential & commercial real estate, leasing, valuation & advisory.

Hoamz managing partner Fred Bramwell, who will lead the agency side of the new business, said: “While we’re saying goodbye to the Hoamz brand locally, we’re ensuring we keep ahead of the market to meet the needs of both sellers & buyers. Since launching our business in 2003, we’ve always looked to offer something different & unique to our customers. We’re confident that joining an innovative, market-leading global brand like Colliers International will achieve just that. Our 2 brands are already well aligned in terms of philosophy, culture & unmatched teamwork.”

The new company will also incorporate the region’s largest full service independent valuation & advisory business, combining the existing Colliers Queenstown & Wanaka practices with Dunedin-based Chapman Consultancy (2008) Ltd.

Attribution: Agency release.

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Agency sees cbd office vacancy easing

Leo Lee.

Colliers research manager Leo Lee said on Friday the agency’s latest research report indicated Auckland’s office space crunch was showing signs of easing.

Vacancy in the cbd rose from 1.9% in the June quarter last year to 3.6% this June.

“Businesses seeking prime office space have had very few options since 2014. Now they have a little relief. Outside of the cbd, a few new projects underway will also help to relieve the pressure.”

Wellington’s office vacancy rate was unchanged from 6 months ago at 7.8%, but prime stock vacancy was down to 0.1%, as a consequence of buildings being removed from the total stock due to seismic damage.

Mr Lee said overall retail vacancy in Auckland had fallen from 4.2% to 3.3%, and from 8.9% to 5.6% in Wellington.

Attribution: Agency release.

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