Net yields dipped under 5% for retail units in recent commercial property sales by Colliers and Bayleys

The net yields on some recent commercial investment property sales reported by Colliers International and Bayleys ranged from 4.9% for a shop in the new Millwater development at Silverdale in north Auckland, to 8.32% for a backpacker's hostel with retail premises on the ground floor in Auckland's CBD.

 A couple of commercial development sites in central New Plymouth sold for around the same price as an entry level home on Auckland's southern outskirts.

The full results reported by both agencies are listed below.

Sold by Colliers International:

• 27-31 Victoria St East, Auckland CBD. A five level commercial building with retail shops on the ground floor and a backpacker's hostel on the upper floors. Sold off market to a private investor for $3.5 million, providing a net yield of 8.32%. The agents were Adam White and Oscar Keung.
• 577 Great South Rd, Manukau. An indoor sports venue leased to Manukau Indoor Sports Ltd and two smaller tenants. Sold at auction to a private investor for $2.75 million, providing a net yield of 7.5%.The agents were Jimmy O'Brien, Ash Vincent and Peter Kermode.
• 175 Millwater Parkway, Silverdale. Seven tenanted shops in a new retail centre developed in the Millwater subdivision, which will eventually provide 3500 new homes.The units were sold separately for a combined value of $6.793 million, providing net yields of between 4.9% and 6.2%. The agents were Euan Stratton, Matt Prentice and Shoneet Chand.

Sold by Bayleys Real Estate:

• Unit 6, 270 Oteha Valley Rd, Albany. A 296 square metre retail premises tenanted to a La Porchetta Italian restaurant, returning $117,211 pa. Sold at auction for $2 million, providing a net yield of 5.86%. The agents were Quinn Ngo and Eddie Zhong. Another vacant unit in the same complex was passed in at auction.
•  240 and 242 Devon St, New Plymouth. Two adjacent, strategic, inner city land holdings, zoned Business D. Sold under the hammer at auction for $470,000. The agents were Neale Parkinson and Alan Johnston.

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