Commercial properties achieved net yields of between 4.66% and 6.11% at Bayleys' final round of major commercial auctions for the year.
At the Auckland auction on December 2, a dozen properties were on the Order of Sale. One was sold prior to the auction commencing and one was withdrawn from sale, leaving 10 to go under the hammer.
These ranged from a strata-titled floor in an office building in Newmarket to several retail and industrial premises.
Most were of a size that could have appealed to private investors.
It was an auction of two halves with the first five properties offered all selling under the hammer and the second five all being passed in.
There was particularly competitive bidding for a 743 square metre retail premises at Browns Bay on the North Shore.
It had a Huckleberry Farm organic supermarket as its tenant and after spirited bidding sold for $4.201 million, giving its new owners a net yield of 4.66% (yields on commercial properties are usually net because the tenant usually pays the outgoings such as rates and insurance).
The most affordable offering of the day was a vacant 302 square metre commercial building on a 390 square metre site in the middle of the Mt Roskill shopping strip.
This was marketed as having a number of development options which included the possibility of developing apartments on the site, and there were multiple bidders and it sold under the hammer for $980,000.
Bayley's East Tamaki auction had a couple of commercial premises that went for around $700,000 - a shop in Avondale that fetched $701,000 giving a net yield of 4.75% and an industrial unit in East Tamaki that was sold vacant for $676,500, while two adjacent shops in Pukekohe's retail strip went for $1.91 million for the pair, giving a net yield of 5.08%.
Bayleys' Hamilton also had half a dozen commercial properties up for auction last week, with one being withdrawn prior to sale, while sales were achieved on four and one was passed in.
Prices ranged from $800,000 for a converted dairy factory on the outskirts of Hamilton to $1.95 million for a modern work/live building that incorporated a warehouse/office and upmarket apartment in the same building, located at Hamilton Airport.
Details of commercial property sales including photographs and the prices achieved, are available on our Commercial Property sales page.
The comment stream on this story is now closed.
We welcome your comments below. If you are not already registered, please register to comment.
Remember we welcome robust, respectful and insightful debate. We don't welcome abusive or defamatory comments and will de-register those repeatedly making such comments. Our current comment policy is here.