New precinct aims for funky ambience

Most of the tenancies in The Exchange have double height glazing with ground floor and mezzanine levels.

Gross lease, where landlord covers operating expenses, big plus for tenants

A new commercial precinct in Quay Park near Britomart on the fringe of the Auckland central business district is offering fully fitted-out tenancy options for smaller business and professional firms under a simplified gross lease arrangement.

The Russell Property Group is offering the turnkey office or retail tenancies ranging from 123sq m to 324sq m in a new mini-precinct called The Exchange on Dockside Lane and Tapora St. The available units are below the Quba Apartment buildings and opposite the Arena carpark and Aecom House in Quay Park in the eastern quarter of the CBD.

Bayleys Real Estate has been appointed master agents for the leasing of the premises with Brendan Graves managing the process.

Graves says The Exchange has attracted strong tenant interest with seven of the units occupied and a further four units under negotiation. He says a particularly appealing feature for tenants is that gross leases are being offered where the landlord pays all the operating expenses (OPEX) including rates, building insurance and body corporate levies, as well as ground rent payments resulting from The Exchange's location on leasehold land.

"While common in Wellington, these types of leases are relatively unusual in Auckland where net leases prevail and OPEX is generally apportioned among the tenants. The beauty of a gross lease is that tenants know immediately what their total occupancy costs are and it also protects them from any sudden future substantial increases in the ground rent or other outgoings.

"The Exchange also offers very affordable space compared with similar space in the centre of the CBD, particularly when taking operating expenses into account, yet the location is only a few minutes stroll from the buzzing business and entertainment precincts of Britomart and the Viaduct and the Britomart and ferry terminal transport hubs," says Graves.

"Vector Arena, a large Countdown supermarket, BNZ, Les Mills gym and a Lollipops childcare facility are close by, as are a number of stylish fashion boutiques, eateries, bars and cafes as well as Mahuhu-ki-te-rangi Park. Being at the eastern gateway to the CBD, The Exchange also provides convenient access to Parnell and the motorway system as well."

Most of the tenancies have double height glazing with ground floor and mezzanine levels, offering strong branding opportunities. Graves says another big plus for tenants is the fact that the Russell Property Group can work with them to construct an internal fit-out that provides the look and feel the occupant wants.

"They have constructed the majority of fit-outs for businesses that have moved into the development and have created some stunning spaces incorporating the mezzanine levels."

Some of the tenants in The Exchange include legal, recruitment, brand agency and digital media businesses.

"Most are using the mezzanine levels for work stations and have used the ground floor space in interesting ways for client meetings and staff interaction. It's created quite a funky ambience for the complex and a village-lane like atmosphere which will gather further momentum as more tenants move in," says Graves.

"The Exchange offers the opportunity to place a business at the core of an innovative and professional community in a part of the CBD that is becoming increasingly recognised and sought after for its smart, stylish commercial space."

What's on offer?
• The property: New city offices for lease.
• Location: Dockside Lane and Tapora St, Quay Park.
• Agency: Bayleys Real Estate.
• Website: the-exchange.co.nz
• Features:
Floor spaces range from 123sq m to 324sq m.
Ideal for smaller business and professional firms.
Tailor-made fit-out options.
Simplified gross lease arrangement.
Landlord pays operating expenses.