A fully leased, four-level, office building occupied by a New Zealand Government department and two Fortune 500 companies is up for sale, as Auckland’s investment market enters its recovery phase.

The green-star rated office building at 12-16 Nicholls Lane, Parnell, which comes with an A-grade seismic classification, has 11,149 square metres of lettable area and is producing a net annual income return of $5.2 million.

The Parnell office building for sale by tender, with tenders closing on November 26.

Bruce Whillans of marketing agency Whillans Realty Group says that with borrowing costs falling and asset prices largely stabilised, the Auckland market is now looking positive. 

This makes it an ideal time to buy “especially when assets of this calibre become available because most of them are tightly held and rarely transact.” 

High development costs are limiting new office supply and there is strong tenant demand for buildings with sustainable features near public transport networks, Whillans adds.

He says the property’s 100% seismic rating is critical in today’s market because both corporate and Government tenants have to consider structural integrity, when leasing new space. They similarly have to consider a building’s environmental footprint to satisfy their ESG mandates.

Whillans’ Jeremy Sim says New Zealand is well ahead of Australia’s interest rate cycle with the Reserve Bank cutting the official cash rate by 75 basis points since August. 

“The latest Q3 inflation figure of 2.2% has paved a clear path for further rate cuts – with some economists pencilling in a terminal OCR sub 3% by this time next year.”

The office building sits on a 9,500 square metre Mixed Use site and has direct access to all motorway junctions. 

It is only two minutes’ walk from the Parnell train station providing a direct link to the CBD. Connectivity between Parnell, the CBD and Auckland’s western suburbs will be further enhanced with the completion of the City Rail Link in 2026.

The western cycle-way entrance is directly outside the property for those who wish to travel to work by bike. Cycle racks and showers are provided onsite.

Developed in 2009 by Haydn & Rollett Construction and McDougall Reidy & Co, it was designed by Warren and Mahoney Architects, receiving the Award of Merit at the 2009 Property Council NZ Awards. It has a 4-Star Green Rating and 4.5 Star NABERS energy rating.

The building is divided into two wings, separated by a central full-height atrium and service core. The western office wing has a floor plate of 1,525 square metres and the eastern wing has a floor plate of 1,310 square metres. 

The tenancies are predominantly open plan with plentiful natural light and full-height glazing.
It comes with 48 parking spaces.

The three major tenants providing 76% of the office income are Nestle, the Department of Internal Affairs and Jacobs - one of the world’s largest engineering companies.

Other tenants include St John’s First Aid training facility, Procare health-care provider, University of Auckland, and NZ Forest Leasing. 

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