Commercial property prices started from $475,000 at Colliers latest auction

Short headline: 
Commercial properties sell at net yields of 6.8% to 8.4%

Colliers sold six of the 10 properties it offered for sale at its latest auction of commercial properties in Auckland and Hamilton, with prices ranging from $475,000 to $2.275 million.

The net yields ranged from 6.8% to 8.4% which suggest smaller commercial properties are returning yields that are at least two to three percentage points higher than residential investment properties in the Auckland region.

In the current environment when net yields on Auckland residential properties are often around 5% or less, it would mean that landlords with commercial premises are earning around 50% more from their investment than their residential  property owning counterparts.

The cheapest sale of the day was a 137 square metre live/work unit at North Harbour which had an office and light industrial unit with roller door access downstairs and an apartment complete with balcony upstairs, which sold for $475,000.

Also well within the price range of most mum and dad investors was a  modern 275 square metre, light industrial/office unit in Penrose which sold for $560,000. It was tenanted and returning $38,000 a year net, giving its new owners a net yield of 6.8%.

The most expensive sale was a retail block in Glen Eden which had a net lettable area of 675 square metres on a 1511 square metre site. It sold for $2.275 million and was returning $190,520 net a year, providing its new owners with a net yield of 8.4%.

The full results of the auction are below. To see photos of all the properties click on this link.

  • Unit A12, 16 Saturn Place, North Harbour. SOLD – $475,000.
  • 329A Ti Rakau Drive, East Tamaki. SOLD – $850,000. Net yield 7.2%.
  • 539-543 Mt Eden Road, Mt Eden. SOLD – $1,415,000. 
  • 35B Maurice Road, Penrose. SOLD – $560,000. Net yield 6.8%
  • 26 Crawford Street, Hamilton. Passed in at $950,000. 
  • Unit 4, 151 Lincoln Road, Henderson. Passed in at $625,000.
  • 4 Parity Place, Wairau Valley. Passed in at $1,410,000.
  • 25-27 Onslow Road, Papakura. SOLD – $2,000,000. Net yield 7.3%.
  • 1 Glendale Road, Glen Eden. SOLD – $2,275,000. Net yield 8.4%.
  • 24 Grayson Avenue, Papatoetoe. Passed in at $700,000.

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