"With the scarcity of vacant retail properties on Ponsonby Rd, we expect this short-notice auction campaign to generate strong interest from retail owner-occupiers," Ching says.
With an assessed market rental income of around $95,000 net a year if the property was tenanted, the agents are also expecting interest from investors looking for a prime retail property for their portfolios.
"Local investors are expected to be attracted by the opportunity to place a strong, long-term tenant in this property and hold it as a solid income-generating asset," Ongley says.
Kermode says there is also potential to add value to the property through modifications.
It has ground floor retail premises of around 130sq m, a 40sq m basement and has a generous 110sq m rear yard.
"The property is of significant size and based on the current demand among occupiers for smaller retail units of around 60sq m, it could be split down the middle to provide two smaller tenancies," Kermode says. "There is also surplus land to the rear of the property that could be built on in the future."
Ching says Ponsonby Rd retail property is very tightly held with few comparable recent sales in the immediate area.
"Ponsonby has become a very strong destination retail precinct with a spate of development recently including the Ponsonby Central project, which has proved very popular with occupiers and shoppers."
Ongley says the Three Lamps area has an excellent leasing history and benefits from easy access to the CBD, as well as its closeness to the affluent residential catchment of Herne Bay, and provides a good retail mix aimed at high-end shoppers.
"Properties along the Ponsonby Rd shopping strip are tightly held and have a 'trophy' value due to their high-profile frontages to both vehicle and pedestrian traffic in the area."
Kermode says Auckland retail properties have remained popular with investors even during the market downturn, and the market was now showing solid improvement.
