Our research would indicate there has been a continued strong demand for commercial retail investment properties, especially for prices under $1,500,000 to $2,000,000. The market has remained strong even through the downturn in the overall economy evident in the earlier months of the year 2008. Whereas commercial/industrial and commercial/office properties have seen a rise in capitalisation rates and yields generally around 1% to 2% over this period, commercial retail property yields have remained reasonably steady.
Recent sales data in the North Shore/North Harbour locality includes a property at 605 Beach Road, Rothesay Bay which sold in December for $701,111. This is a long established superette on a two year lease until April 2013 with an adjoining three bedroom weatherboard house of 180 square metres on a 184 square metre site. Sold before auction by Bayleys, has a net income at the date of sale of $43,920 per annum indicating a yield of 6.3%.
Premises at 130 Wairau Road, Wairau Valley sold in December for $1,145,000. They include a 695 square metre retail showroom building on an 814 square metre site. The tenant is Elite Fitness who recently renewed their lease for three years. Annual rental of $80,000. The sale price indicates a yield of 6.9%.
A smaller shop over two floors tenanted by Federation Clothing at F/7 Triton Drive sold in December 2011 for $51,160 per annum plus GST. The sale price indicates a yield of 7.57%.
A smaller shop at B11, 19 Clyde Road, Browns Bay sold in December for $824,000. A 1950s style shop with unit title ownership, net rental income $56,000 per annum, leased to Browns Bay Realty, trading as Ray White. Occupied since 2004, new three year term from February 2011. Sale price indicates a yield of 6.8%.
A larger traditional strip type suburban shopping centre at 573 - 576 Glenfield Road, Glenfield sold in November 2011 for $2,811,000. Comprises three freehold titles, eight tenancies, sold under the hammer at auction by Colliers North Shore, good prime position, the buidlings were erected in the 1960s and 1970s. Sale price indicated a yield on passing income of 4.8%.
A 1970s style 500 square metre shop with a land area of some 1,413 square metres located at the corner of Shakespeare Road and East Coast Road to the northern end of Milford shopping centre sold in June 2011 for $2,430,000. Tenants include Configure Gym and Fruitworld. The annual net income is $176,821 and the sale price recorded a yield of 7.2%.