A small retail investment property in a popular suburban shopping mall in Royal Oak, Auckland, is on the market for sale by auction.
Unit 58 in the Royal Oak Shopping Mall, at 691 Manukau Rd, is occupied by Ray White Real Estate. It is being marketed by Gareth Fraser and Jonathan Lynch of Colliers International and will go under the hammer at 11am on Wednesday December 14 at 151 Queen St, Auckland.
The freehold unit is being sold with a new six-year lease to Ray White, which includes fixed rental growth. It is located within a well-located and busy shopping mall on a main arterial route. These attributes, including its newly-refurbished interior, mean it meets the key criteria commercial property investors are looking for; including build quality, location and tenant covenant, says Fraser.
“This property is very well presented and holds a prime spot facing the carpark in the Royal Oak Mall, which has excellent profile to Manukau Rd. With a new lease in place to a well-known national tenant, the unit makes an outstanding passive investment.”
Lynch says that the $80,000 annual net rental on the unit places it within an accessible price bracket for many individual investors.
“Small retail property investments like this one are always very popular in the auction room. With strong tenants and good lease terms in place, retail investment properties are favoured as they are relatively hassle-free and easy to manage,” he says.
The unit’s likely price range means it will be affordable to many individual buyers looking to add commercial property to their portfolios, or perhaps enter the commercial property market for the first time, Fraser says.
“We are certainly seeing more first-time buyers enter the market because of the low borrowing rates that are available, and these buyers are often diversifying away from residential where prices are becoming very stretched.”
The 342sq m unit houses a well-appointed reception and waiting area, offices for Ray White’s sales and administration staff and an auction room which provides the latest audio-visual technology.
Ample car parking is available in front of the unit and disabled access is also provided, says Lynch. “The entrance to the unit and the auction room are conveniently located at the top of the main escalator at the entrance to the mall. This provides ease of access to customers and staff.”
The Royal Oak Shopping Mall is a popular and convenient centre for residents of the large surrounding suburbs, says Fraser.
“The centre provides a good tenant mix that works well for the local community, ensuring consistently high customer numbers.”
Lifestyle and leisure, beauty and health, services, fashion and food tenants are located over two levels in the centre, as well as a Pak ‘n Save supermarket.
“The centre is in a high profile location and is popular among tenants, which shows the catchment area and its large population are attractive to retailers and service providers,” he says.
The property is located on Manukau Rd, which is the main thoroughfare from Newmarket, Mt Eden and Epsom to Auckland Airport.
Good public transport links and motorway access are also provided in the area, linking local attractions and amenities including Cornwall Park, cafes, schools, shops and sports clubs to the central city.