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Yields on commercial properties ranged from under 3% to almost 10% at latest Bayleys auction

Property
Yields on commercial properties ranged from under 3% to almost 10% at latest Bayleys auction
This development property sold for $2.31 million, providing a net yield of 2.9%.

Just over half of the commercial properties auctioned by Bayleys at their Viaduct Harbour rooms on Wednesday were sold, with yields ranging from 2.9% to 9.26%.

It was a big auction with 44 properties listed on the order of sale although there was handful of late withdrawals and as is usual at this type of auction, many of the offered properties were of a type and size that would appeal to smaller private investors.

The extraordinarily low yield of 2.9% achieved on the property at 1 Wooten Rd in Remuera was likely a reflection of its development potential.

It was a 561sq m corner site zoned for multi use commercial and currently returning $67,000 + GST from a variety of tenants. It was sold for $2.31 million.

At the other end of the yield scale, a service station at 386 Ti Rakau Drive in East Tamaki leased to Gull, sold for $2.82 million providing a net yield of  9.26%.

You can view the full results of the auction, which includes details of the properties that are still available for sale, by clicking on this link.

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