Five per cent appears to be the net yield figure commercial property investors seem to be aiming for with mainstream, small to medium sized commercial properties in Auckland.
At Bayleys' latest commercial property auction in Auckland, 10 properties were offered with bidding received on seven of them while three were passed in with no bids.
Of the seven that received bids, four were sold under the hammer.
Of the four that were sold, two were vacant - a modern 45 square metre shop in the Eden Quarter complex on Dominion Road, which sold for $470,000, and a 5002 square metre residential development site at Rosehill in Papakura, which went for $2,800,000.
The two tenanted properties that sold were a childcare centre in Beachlands which went for $2,660,000, giving a net yield of 4.96% and a large, two level character building with multiple tenants in the main Asian dining strip of Balmoral, which went for $4.0 million, giving a net yield of 5.01%.
Also reported by Bayleys recently was a 365 square metre industrial building with a large yard and car park in Manurewa, which went for $826,000 giving a net yield of 5.12% and a medical centre in Woburn, Lower Hutt that went for $675,000 giving a net yield of 5.47%.
However some properties are also selling at much higher yields, with a 602 square metre, retail premises with multiple tenants in Silverdale returning a yield of 6.17%, an ANZ Bank premises in Waiuku achieved 6.98%, a 330 square metre retail premises with four tenants on a 1006 square metre site at Stokes Valley in Wellington achieved 6.98%, while a substantial, two level building on a corner site in Petone, with seven retail tenants on the ground floor and 10 flats on the first floor, sold for $2,500,000, giving a net yield of 10.5%.
Further details and photographs of the above properties and others that have sold, are available on our searchable Commercial Property Sales page.
The comment stream on this story is now closed.
You can receive all of our property articles automatically by subscribing to our free email Property Newsletter. This will deliver all of our property-related articles, including auction results and interest rate updates, directly to your in-box 3-5 times a week. We don't share your details with third parties and you can unsubscribe at any time. To subscribe just click on this link, scroll down to "Property email newsletter" and enter your email address.