Twenty nine commercial properties went under the hammer at Bayleys Greater Auckland Commercial Auction this week, with 17 of them selling on the day.
A mix of retail, office, light industrial and development properties were offered and the net yields achieved ranged form 4.95% to 9.58%, although most were in the 7% to 7.5% range.
The hottest sale of the day was a 56 square metre shop in the historic Landmark House on Queen St.
The shop was occupied by cosmetics company Lush on a lease with six years to run from last November, providing a net rental of $160,000 + GST a year. It sold for $3.23 million which made it the most expensive sale of the day and would provide its new owners with a net yield of 4.95%.
The highest yield of the day was for a stand alone bulk retail property on an 854 square metre corner site in Henderson. The warehouse style building had a floor area of 940 square metres (including 285 square metres of mezzanine floor space) and was occupied by Waitemata Backcare Beds on a lease with just under five years to run, returning $124,064 + GST a year. It sold for $1.295 million providing a net yield 9.58%.
The least expensive property to sell on the day was a modern, 171 square metre light industrial unit with a two level office/showroom at the front, located at Albany on the North Shore. It was offered with vacant possession and sold for $416,000.
There were three other properties at the same auction that sold for less than $500,000 which proves that commercial property is not just the preserve of wealthy investors, and these lower priced units all achieved net yields above 7%, which is considerably more than most residential investment properties in Auckland are likely to return in the current market.
To see the full results of the Bayleys auction, including photos of all properties offered and details of those that didn't sell, click on this link.
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