Cutlers Commercial Update
As we write this it is day one of level 3 for the South Island and most of the North Island. This new Delta mutation seemed to have crept up on us, but fingers crossed we will be down to level 2 this time next week.
The sale of commercial investment property remains particularly strong with multiple buyers for anything that comes on to the market, case in point we have recently conditionally signed up a property in Princes St with multiple offers. We had more than 10 inspections and sent out over 20 information packs. To view the bona-fide sales for the last 3 months please Click to view sales History Report info courtesy Core Logic. Yields for investment property remain low in Dunedin, 6% to 7.5% dependent on property, tenant, and location. I am aware of a sale with a yield of less than 5% but the property was sold to a owner occupier.
Even with the lack of listings we have been busy selling and leasing. We have recently secured sales in Princes Street, Anzac Avenue (not yet settled), industrial property in Broughton Street and 1908 Restaurant, both the business and the Freehold. Earlier in the year we sold a rental vehicle business.
We have property ‘quietly’ on the market, so do make contact to let us know your needs.
The following leases have been secured:
Level 1, 1 Bond St
Level 3, 67 Princes Street
11 The Octagon (the Old Rat Bags & Innocent Bystanders)
Kiosk, Wall Street Mall
Level 1, 60 Tennyson Street
Ground, 401 Princes Street
Basement, 377 Princes
Level 1, 27 Albany
82 Bond St
26 Broughton St, Sth Dunedin
Level 2, 110 Moray
Rents for Industrial property continue to rise with smaller industrial buildings (200m2 to 300m2) leasing at between $100m2 and $120m2 plus outgoings and larger units leasing at $80m2 to $90m2 plus OPEX and GST. There is still a dire shortage of Industrial units, especially the 200m2 to 300m2 size. We see this shortage continuing for same time especially with the start of the new Hospital build imminent. The lack of available space is evident on realestate.co.nz with approx. 6000m2 vacant and of that there is only about 1000m2 of smaller industrial units available.
Prime Office space is still at a premium with rents$250 to $340 depending on a number of factors, with demand for B grade offices not as much in demand.
Retail rents are irregular and hard to put a figure on, with vacancies remaining steady in George St Click to view Retail Occupancy Survey Kindly Supplied by Adam Bins Valuation.
In conclusion the Dunedin market remains buoyant in most areas and we are looking forward to a very busy Spring selling and leasing Commercial Property.
You may want to visit Cutlers blog page to see more articles. One recent article we discuss why people are moving to Commercial Investment.