Smaller retail and industrial properties were popular with investors at Bayleys' latest commercial property auctions with not much left unsold

Smaller retail and industrial properties were popular with investors at Bayleys' latest commercial property auctions with not much left unsold
This industrial unit at Petone in Lower Hutt sold for $390,000.

The year finished on a high note at Bayleys Real Estate's last major commercial property auctions of the year in Auckland and Wellington, where a good selection of mostly small to medium sized retail and industrial properties were on offer that would have appealed to private investors.

At the Auckland auction 22 properties were on the Order of Sale but three were withdrawn just prior to the auction, two were sold prior to the auction and one had its auction postponed, leaving 16 to go under the hammer.

Of those, 11 were sold, either under the hammer or during the negotiations that followed immediately afterwards, and five were not sold, giving a sales clearance rate of 69%.

Prices ranged from $620,000 for a commercial unit with two car parks used as a legal office in Freemans Bay, to $4.71 million for a mixed use, two level property in St Heliers Bay Village.

The net rental yields ranged from 3.59% for the St Heliers Bay property to 5.55% for a retail premises in Pukekohe.

However the yields for the majority of properties that sold were in the 4-5% range.

At the Wellington auction 17 properties were on the Order of Sale but two were withdrawn prior to the auction leaving 15 to go under the hammer, mostly industrial units and a few retail premises.

Of the 15 properties on offer, 11 were sold and four were passed in for sale by negotiation.

Prices ranged from $220,000 for a warehouse/workshop with a mezzanine office space at Wingate in Lower Hutt to $2.25 million for an industrial property at Seaview that was leased to VTNZ.

The net rental yields on the properties that sold ranged from 5.95% to 7.17%.

Details and photos of all the properties offered at both auctions and the selling prices of most of those that sold can be viewed on our Commercial Property Sales page.

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Well, those are very healthy auction results considering yields are not spectacular..

"Of those, 11 were sold, either under the hammer or during the negotiations that followed immediately afterwards, and five were not sold, giving a sales clearance rate of 69%."
Spot on terminology - 'auction' and 'negotiation' both being distinct and separate parts of the sales process.

But had the 3 that were withdrawn gone under the hammer ( most likely because no one was going to turn up to place a bid!) the Clearance Rate would have been 57%. Not bad in a falling market.

Only the price and perhaps the settlement date would have been negotiated. They would all be unconditional sales.

I think that's what bw is highlighting; open auction and negotiation between two parties are very different things where price is concerned.

The 3 that were withdrawn are to be used in a joint venture with a potential bidder who was keen to establish a new business from the properties. So clearance rate would have been 74%. Business as usual.