Newmarket office anchored by Kathmandu's flagship retail store
A fully leased office and retail property in a prime Broadway location is on the market, as demand for office space in the Auckland business hub of Newmarket is at an all-time high.
The seven-level building at 135-151 Broadway is being marketed for sale by Colliers International Capital Markets Director Richard Kirke and NAI Harcourts Sales and Leasing Consultant Peta Laery.
Offers by way of deadline private treaty close at 4pm on Thursday, 26 October, unless sold prior.
Kirke says the split-risk investment, anchored by leading outdoor and adventure retailer Kathmandu, offers five levels of office space and 87 car parks.
“This is an outstanding opportunity to acquire a solidly performing commercial investment in one of Auckland’s most established shopping, entertainment and commercial areas,” he says.
“The property is fully leased to a mix of office, retail, car park and storage tenants, returning an annual net passing income of some $1.62 million.
“A generous amount of office space makes it a particularly attractive investment at a time when Newmarket’s office vacancy rate is at a record low.
“Ample car parking with direct access to the building also makes this a desirable asset, as demand for parking in Newmarket remains strong.
“The site also boasts future redevelopment potential, with its mixed-use zoning under the Auckland Unitary Plan allowing for high-density residential development.”
Kirke says the building fully covers its 2,408sq m site, and offers a net lettable area of some 4,735sq m.
“A large 1,291sq m retail unit on the ground and first floors is fully leased to Kathmandu’s flagship store.
“The unit benefits from 32m of high-profile street frontage to Broadway and features polished concrete flooring, hard-lined internal walls and exposed ceilings.
“It also offers direct access to the neighbouring Rialto cinema and retail complex, which provides a pedestrian link between Broadway and Osborne Street.”
The office tower above the retail unit features a second-floor balcony, and a distinctive exterior of curved glass and aluminium composite cladding.
“The tower offers 270 degree views – an unusually large panorama that makes these offices fairly unique within the city fringe,” Kirke says.
The office tenancies have good access from both the ground floor and the second level of the car park.
The five-level parking structure is located at the rear of the building and accessed from Osborne Street, which runs parallel to Broadway.
Kirke says the building was constructed in the mid-1980s and has an A+ seismic rating.
It is fully serviced by two lifts, fire alarms, sprinklers, a security card access system and centralised air conditioning.
Outstanding Newmarket location
Laery says the building is superbly located within Newmarket.
“The property is right next to a major bus stop near the corner of Khyber Pass Road. Hundreds of buses pass by daily, including the popular Link buses,” she says.
“It is also close to the Newmarket train station, which will double in capacity once the City Rail Link is completed.”
Recreational amenities within walking distance include the Newmarket pools, Lumsden Green, Newmarket Park and the Domain.
“The area is also well-served by premium retail offerings, including the 277 shopping centre and supermarket, as well as great cafes and bars,” Laery says.
Demand for retail space in Auckland is strong, with Colliers International research finding the region’s retail vacancy rate is at 3.1 per cent. Newmarket’s vacancy rate is even lower, at 2.5 per cent.
“The suburb’s reputation as a premium shopping destination is reflected by its low retail vacancy rate,” Laery says.
“That’s one of the reasons why big brand names like Witchery, Country Road, Adidas, Nespresso and Kathmandu have all chosen to locate their flagship stores here.”
Listed on the Australian and New Zealand stock exchanges, Kathmandu is a well-established chain of retail stores selling travel, adventure and outdoor apparel and equipment. The Newmarket store is among 40 locations nationwide.
City fringe office demand buoyant
Laery says Newmarket ranks among Auckland’s most respected business centres.
“More than 1,900 business locations in the area employ some 15,000 people, including many larges corporate headquarters such as 2degrees, Vector and Westfield NZ.
“The area is continuing to attract strong corporate interest, with Mercury due to relocate to a new office being developed by Mansons TCLM.”
Colliers International research shows the spill-over effect of low CBD office vacancies is driving demand for city fringe offices in areas like Newmarket.
The prime office vacancy rate in Auckland’s city fringe was a record low 2.6 per cent as of March, with only 3,800sq m of space vacant.
City fringe rents are expected to rise further over the next year due to additional demand from the overflow of CBD tenants struggling to find space.
Laery says the property for sale has nine office tenants including Imarda, a privately held multinational corporation that provides in-vehicle electronic networking systems.
“Imarda’s Auckland headquarters occupy all of level two, with direct access to the car park and a balcony that overlooks Broadway.”
Another major tenant is Chow:Hill Architects, a New Zealand-based collaborative architecture firm.
“The firm offers a comprehensive range of total design services including architecture, interior design, urban design and landscape architecture.”
Newmarket is also a popular residential area, with coveted double Grammar zoning.
Laery says the Auckland Unitary Plan encourages mixed use residential development in the area.
“Much of Newmarket is zoned Metropolitan Centre, second only to the city centre in scale and intensity, which allows for a wide range of activities including commercial, retail and high-density residential.”
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