In the frame for an investment

Shops in this area rarely come up for sale. Photo / Supplied

Sitting in a Newmarket block of 18 shops that has rarely seen any vacant space in the past two decades, a Remuera Rd shop goes up for auction next month in a market starved of good investment property in the sub-million dollar price range.

The 75sq m shop, in the block spanning 27-73 Remuera Rd, houses Frame by Frame, a picture frame franchise business which has occupied space in the building for nearly 10 years.

The shop, which is part of Bayleys Total Property portfolio, is to be auctioned on September 23.

Matt Bayley, who is marketing the unit-titled Shop A in the complex in conjunction with Cameron Melhuish of Bayleys Auckland, says the success of the block of shops along this stretch of Remuera Rd has been in its high-profile location near the Broadway intersection, which carries up to 25,000 cars daily.

Scriven Art Studios Limited, which trades as Frame by Frame, has a new two-year lease with the right to renew until 2013 and the shop is producing net annual rental income of $36,385.

The shop has a full glazing frontage to the busy Remuera Rd providing the gallery area with significant exposure. The main retail area is at the front of the shop and behind that is a work area, staff kitchen and bathroom.

Bayley says that while the shop is currently used as an art gallery and framing business it would suit a range of retailing uses should the tenant ever vacate.

"The shop forms part of a popular boutique retail centre that houses businesses such as Pizza Hut, Bayleys Real Estate, Monet, Shoe Science and Natural Bake. One of the top trading Dick Smiths is also just across the road," he says.

"The popularity of this shopping strip over the years is due to its high profile at the Newmarket end of Remuera Road which has quite a high foot count. It also has the bonus of generous car parking at the rear of the premises, available for both staff and visitors.

"The vibrant Nuffield Street precinct is just around the corner and has proved a major draw card for the area. Also within the immediate vicinity are a number of residential apartments which will further increase foot traffic through the area and continue to underpin Newmarket's popularity with retail and commercial tenants."

Cameron Melhuish says that Newmarket has traditionally had one of the lowest vacancy rates of any retail area in New Zealand while its rents have been among the highest.

"Shops of this size in Newmarket are very tightly held by investors because they are rarely vacant and provide a steady passive income. Although there hasn't been much rental growth of late, the latest retail spending figures are edging up, which is a positive sign for the economy in general and retail in particular," he says.

Melhuish says a $6 million council upgrade has made quite a difference to the look of the Newmarket retail strip and the proposed $65 million rail upgrade will further enhance the area.

The upgrade included bluestone paving, basalt street gardens, street furniture, planting and lighting, all chosen to reflect the area's character and it has provided Broadway with a smart new look, says Melhuish.