Colliers Portfolio | Issue 5 2022

Colliers Portfolio Issue 5

24 Greenwich Street, Waihola, Otago 15 Year Lease on State Highway 1 More on page 09

Accelerating success.

Sep/Oct

2022

Recent Deals SOLD

SOLD

SOLD

2 Colliers Portfolio

11-13 A & B Marken Place, Wairau Valley, Auckland Sold by Matt Prentice and Janet Marshall

SOLD

164 Courtenay Street, New Plymouth Sold by Benet Carroll

SOLD

15 Church Street, Onehunga, Auckland Sold by Gawan Bakshi, Ned Gow and David Burley

18B Loop Road, Kelvin Heights, Otago Sold by Maria Wyndham and Brendan Quill

SOLD

2 Taitimu Road, Tauriko, Bay of Plenty Sold by Rachel Emerson, Grant White, Richard Davidson

SOLD

430 Ngongotaha Road, Rotorua Sold by Mark Rendell

805 Paradise Valley Road, Ngongotahā Valley, Rotorua Sold by Chris Meban

SOLD

101-155 Wahanga-a-Rangi Crescent, Ōwhata, Rotorua Sold by Mark Rendell

SOLD

1121 Devon Road, New Plymouth Sold by Benet Carroll

Contents Colliers Portfolio Issue 5 04

07

09

11

14

17

18

20

Top-quality industrial investment in Avondale Colliers shines at REINZ Awards

Corner site sitting on two titles in Papakura Case Study | Evolution Healthcare New Zealand Research Report September 2022

22

Featured Brokers

As we move into spring and summer, the commercial property market continues to gain momentum with premium offerings drawing strong interest among buyers.

While a backdrop of unrest exists with global geopolitical concerns and rising inflation, there are still significant opportunities in the market for savvy investors who have an eye to the future.

The outlook for the rest of the year remains positive and while some people may be thinking about their Christmas break, now is the time to secure your next strategic investment.

We continue to receive regular buyer enquiries across all asset classes and locations, with hotspots proving particularly active in New Zealand.

Our latest Portfolio features a vast array of premier purchasing opportunities with industrial properties, development sites, and warehouse and office assets from all corners of Auckland, alongside further offerings in Hawke’s Bay and Hamilton.

There is a good volume of available stock, as evidenced by this edition, and with stock market volatility still apparent and global markets facing headwinds, commercial property remains a sought-after asset class.

Thank you for your continued interest in Colliers Portfolio and our team of experts looks forward to hearing from you.

Gareth Fraser Auckland Director | Investment Sales

3

Key Listings

Large-scale development site in sought-after Milford

Colliers Portfolio

Premium Listings

4 Colliers Portfolio

BOUNDARY LINES INDICATIVE ONLY

New Shoots Coatesville - 18 Year Lease!

302 Coatesville-Riverhead Highway, Coatesville, Auckland For sale by Deadline Private Treaty closing at 4pm Tue 11 October 2022 (unless sold prior)

Net Return $321,100 pa + GST

18 Year Lease + ROR’s

Quality National Tenant

Brand New Building

1,968sqm Mixed Use Title

Centrally positioned in one of New Zealand’s wealthiest suburbs is this premium grade investment featuring a brand new building and an 18 year lease to New Shoots who are one of the most respected and experienced tenants in the ECE sector.

Returning $321,100 pa net, the lease offers annual CPI rent reviews, with market reviews every four years and is supported by a 6 month bank guarantee. With a new 18 year initial lease term, there are two further rights of renewal of 6 years each with a final lease expiry in 2052.

New Shoots occupy 17 sites around the North Island and are very well backed being part owned by Milford Asset as well as other highly reputable market experts.

Consented for 95 children, the brand new 598sqm building sits on a 1,968sqm Business Mixed Use freehold/fee simple title with excellent road frontage and easy access from Coatesville Riverhead Highway.

This investment ticks all of the boxes and must be inspected.

Shoneet Chand 021 400 765

Matt Prentice 021 464 904

colliers.co.nz/p-NZL67020686

Jimmy O’Brien 021 979 001

5 Colliers Portfolio

BOUNDARY LINES INDICATIVE ONLY

Brand New - 15 Year Lease & Bank Guarantee!

17A Bell Road, Beachlands, Manukau For sale by Deadline Private Treaty closing at 4pm Tue 11 October 2022 (unless sold prior)

Net Return $259,376 pa + GST

15 Year Lease + ROR’s

Experienced Tenant

Brand New Building

2,081 sqm Freehold Title

Featuring a brand new building, 15 year initial lease term with further ROR’s, 12 month bank guarantee, as well as annual CPI and 5 yearly market rent reviews, this investment really is the complete package.

Returning $259,376 pa, the purpose built facility is consented for 86 children and was developed by Signature Homes who are highly experienced in early childhood education being involved in constructing over 150 centres nationally.

Strategically positioned directly across from Beachlands School, this quality investment opportunity features experienced brand Just Kidz who have over 20 years experience in the industry. Bell Road will be their eighth centre in Auckland.

The centre is well positioned on a 2,081sqm freehold title which is set back from the road, providing easy vehicle access in an excellent Auckland location.

This investment features excellent fundamentals and will be sought after.

Shoneet Chand 021 400 765

Matt Prentice 021 464 904

colliers.co.nz/p-NZL67020683

Ronal Prasad 021 232 1192

6 Colliers Portfolio

Boundary Lines Indicative Only

5,3442m² Prime Site Invest, Occupy or Develop!

1 Forrest Hill & 4 Nile Roads, Milford, Auckland For Sale by Deadline Private Treaty closing Wednesday 12 October 2022 at 4pm (unless sold prior)

5,344m² prime development opportunity

Two titles being offered as one

Returning $160,000 pa net + GST

Vacant Possession possible after April 2024

Predominately Mixed Use Zoning

Perfectly positioned on the corners of Forrest Hill, Nile and Wairau Roads in Milford on Auckland’s North Shore is this rare high profile prime site of 5,344 sqm predominantly Mixed Use Zoned with unbeatable development potential. The site is currently leased to Kings Plant Barn offering holding income of $160,000 pa net + GST with next ROR April 2025 and a demolition clause being available to the successful purchaser - vacant possession possible from April 2024.

Held by a syndicate of owners for many years, this unique offering is now seriously for sale in one of Auckland’s most tightly held locations - call the Sole Agents now for further information.

Janet Marshall 021 684 775

Shoneet Chand 021 400 765

colliers.co.nz/p-nz67020090

Matt Prentice 021 464 904

QR Code

News

Large-scale development site in sought-after Milford A highly visible corner property in the tightly held North Shore suburb of Milford offers buyers the opportunity to purchase a prime site with holding income and extensive future development potential.

1 Forrest Hill Road and 4 Nile Road is a 5,344sq m site that includes two titles but is being presented to the market as a single offering.

The majority of the site is zoned Business – Mixed Use Zone under the Auckland Unitary Plan, while the balance of the property is zoned Residential – Mixed Housing Urban Zone.

The property is home to Kings Plant Barn who have a lease that runs until April 2025, providing $159,996 plus GST in annual rental income. A 12-month demolition clause is available to the successful purchaser making vacant possession possible from April 2024.

The site is located across from Westlake Girls’ High School and Smales Farm with favourable proximity to other key amenities such as North Shore Hospital, Takapuna and Milford beaches, Wairau Valley, and the Takapuna CBD. The Auckland CBD lies approximately 9km to the southeast and can be reached in 15 minutes outside of peak commuting hours. Motorway access is only 600m away from the subject site, while regular public transport options are available on Forrest Hill Road.

Colliers Directors Janet Marshall, Shoneet Chand, and Matt Prentice have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 12 October, unless sold prior.

Marshall, Director of Sales and Leasing at Colliers, says the Mixed Use zoning of the property will hold significant appeal for buyers given the options that will be available to them for the future use of the site.

“The Business – Mixed Use Zone is typically located around centres and along corridors served by public transport,” Marshall says.

“The zone provides for residential activity as well as predominantly smaller scale commercial activity that does not cumulatively affect the function, role, and amenity of centres. The zone does not specifically require a mix of uses on individual sites or within areas.

“There is a range of possible building heights depending on the context. Provisions typically enable heights up to four storeys. Greater height may be enabled in areas close to the city centre, metropolitan centres, and larger town centres.”

Marshall says the residential zoning provides the potential for further intensification of the site.

“The Residential – Mixed Housing Urban Zone is a reasonably high-intensity zone enabling a greater intensity of development than previously provided for.

“Over time, the appearance of neighbourhoods within this zone will change, with development typically up to three storeys in a variety of sizes and forms, including detached dwellings, terrace housing and low-rise apartments.

“This supports increasing the capacity and choice of housing within neighbourhoods as well as promoting walkable neighbourhoods, fostering a sense of community and increasing the vitality of centres.”

Chand, Director of Investment Sales at Colliers, says the holding income offers the new owner a steady rental stream.

To continue reading and find out more, scan the QR Code colliers.co.nz/real-estate-news

8 Colliers Portfolio

Boundary lines are indicative only

Hawke’s Bay Coolstore Investment 5 Hill Road, Twyford, Hastings For Sale By Deadline Private Treaty Closing Thursday 20th October at 4pm (unless sold prior)

Land Area: 3.5345ha

Six substantial coolstores

$2.35m net rental pa + GST

2.75% annual fixed increases

Long term 12.5 year lease

Strategic location

An opportunity to secure a modern, state of the art coolstore facility ideally located in New Zealand’s premier pipfruit region of Hawke’s Bay. The asset is strategically located on over 3.5345ha (more or less) of land, positioned within close proximity to the Heretaunga Plains production area, 400 metres from State Highway 50 providing direct access to State Highways 2 and 5.

The three coolstore buildings are configured into six substantial coolstores and are one of the largest stores of this type, allowing SmartFresh capability. They offer significant flexibility and clearspan, high stud industrial accommodation. The coolstores currently operate at 0.5°C on a modern glycol refrigeration system (installed in 2016).

This property is well suited to meet the increasing demand for modern, generic coolstore space within the Hawke’s Bay locality, a sector which is subject to strong demand and limited supply of alternative premises.

Danny Blair +64 21 826 496 www.colliers.co.nz/p-NZL67020549

9

15 Year Lease on State Highway 1 24 Greenwich Street, Waihola, Otago

New 15 year lease

2,150 sqm corner site

Dean Collins 027 499 0974

Annual net rental $150,000

Fixed rental growth

NPD operating 50 years +

State Highway 1 profile site

Sam Staite 021 738 245

colliers.co.nz/p-nzl67020703

BOUNDARY LINES INDICATIVE ONLY

“A” Grade Albany Industrial Investment

Once in a Lifetime

6 Canaveral Drive, Albany, Auckland

474-476 New North Road, Kingsland

For Sale by Deadline Private Treaty closing Tue 11 October 2022 at 4pm (unless sold prior)

Deadline Private Treaty, closing Wednesday 13th October (unless sold prior)

6,427 sqm Freehold title

Returning $512,000 pa net + GST

82% Warehouse ratio

Future growth potential

Extremely rare opportunity to acquire a Kingsland town centre property

Attractive 720m2 building in excellent condition

Offered with vacant possession, allowing immediate access

Matt Prentice 021 464 904

Jonathan Lynch 021 900 611

Shoneet Chand 021 400 765

Ned Gow 021 122 2731

colliers.co.nz/p-nzl67020537

colliers.co.nz/p-NZL67020629

Colliers Portfolio

For Sale by Deadline Private Treaty closing 19 October 2022 at 4pm (unless sold prior)

Refurbished + Lease to National Tenant

Giant Investment

3/166 Great South Road, Manurewa

783-789 Heaphy Terrace, Hamilton

Sold via Deadline Private Treaty closing 4:00pm on Thursday the 13th of October 2022

For Sale by Deadline Private Treaty closing Thu 29 September at 12pm (unless sold prior)

10 781m² across two floors Colliers Portfolio

Ryan Gibb 021 826 421

Returning $156,200 net + GST p.a.

Rijak Bakshi 021 31 31 81

Established key national tenant

National tenant

Iconic suburban location

Purpose built

David Palmer 021 272 98 34

Matthew Barnes 021 828 563

Justin Oliver 0275 654 837

colliers.co.nz/p-NZL67018095

colliers.co.nz/p-nzl67020350

Rare Manukau Land Opportunity

Tenanted Investment – Corner Site 2-4 Parker Street, Papakura

For Sale by Deadline Private Treaty closing Wed 12 October 2022 (unless sold prior)

18 Lakewood Court, Manukau For sale via Deadline Private Treaty closing at 4:00PM on Wednesday 20th October 2022

Z 8,099m² freehold site

Paul Higgins 021 549 226

Two titles

Returning $365,000 net p.a. + GST

Josh Franklin 021 990 714

colliers.co.nz/p-NZL67020521

584m² site (more or less)

Business Mixed Use Zone

High growth location

Matthew Barnes 021 828 563 Ryan Gibb 021 826 421

colliers.co.nz/p-nzl67020507

News

Corner site sitting on two titles in Papakura A prominently positioned corner property with an established tenant in the sought-after Papakura industrial precinct offers buyers the opportunity to acquire an industrial investment with low site coverage and addvalue potential.

2-4 Parker Street in Papakura features 1,409sq m of total net lettable area on an 8,099sq m site, which is split across two freehold titles and sits on the corner of Hunua Road and Parker Street. The property is zoned Business – Light Industry Zone under the Auckland Unitary Plan.

The property has in-demand features and provides two seperate titles and multiple access points with a functional layout that includes a significant yard area.

Henderson Demolition is the current tenant, and they began a six-year lease term in May with one further right of renewal for three years leading to a final expiry of May 2031.

The lease agreement returns $365,000 plus GST in net annual rental income and includes CPI and market rent reviews on alternating years.

The highly visible property is perfectly positioned to benefit from the new developments and improved infrastructure nearby. State Highway 1 is only 3km away, providing access to Auckland’s CBD and the major industrial precincts to the north.

The site is well served by nearby amenities and the Papakura township can be reached within minutes.

Colliers Directors Paul Higgins and Josh Franklin have been exclusively appointed to market the property for sale and the deadline for offers closes at 4pm on Wednesday 12 October, unless sold prior.

The property includes 220m of total road frontage with 100m onto the area’s main arterial route Hunua Road and 120m to Parker Street. Adding to the appeal and

functionality are three points of access/driveways, which makes splitting the sites a viable possibility in the future.

The warehouse at 2 Parker Street boasts excellent access while the site has dual driveways. 4 Parker Street is a functional-shaped site with good access and a small canopy and office area on the boundary of the property.

Both sites offer extensive yard space.

The Papakura industrial precinct continues to develop with new complexes recently being completed in the area, including five high-quality industrial buildings on 83 Boundary Road, and new buildings at 90 and 98 Hunua Road.

The favourable proximity to staff catchments along with continued growth in nearby areas such as Drury and Pokeno has made Papakura a desirable location for businesses.

Higgins, Director of Industrial at Colliers, says the subject property offers a strong tenant covenant coupled with future development opportunities.

“Buyers will be able to enjoy the steady rental stream from an established tenant with a lease structure that caters to both CPI and market increases,” Higgins says.

“The low site coverage of only 23 per cent across both titles means there is future development potential, and the new owner may choose to develop the site in due course.”

Franklin, Director of Industrial at Colliers, says the highprofile site is strategically located in an area that has grown through ongoing infrastructure investment.

To continue reading and find out more, scan the QR Code colliers.co.nz/real-estate-news

12 Colliers Portfolio

Hawke's Bay Coolstore Investment An opportunity to secure a modern, state of the art coolstore facility ideally located in New Zealand’s premier pipfruit region of Hawke’s Bay.

Details on page 8

Colliers Portfolio

13

News

Top-quality industrial investment in Avondale A fully refurbished office and warehouse building in the tightly held Rosebank Peninsula industrial precinct in Avondale offers buyers the opportunity to acquire a prime passive investment with a strong tenant covenant.

Prentice, Director of Industrial Sales and Leasing at Colliers, says the property shapes as a high-quality purchasing opportunity, which is supported by a strong tenant covenant.

14-18 Honan Place, Avondale offers 2,053sq m of total net lettable area on a regular-shaped 3,143sq m freehold site that is zoned Business – Light Industry Zone under the Auckland Unitary Plan.

“The existing tenant is a longstanding occupant that recently began a new long-term lease, which shows their commitment to this exceptional site,” Prentice says.

The property is home to longstanding tenant, the G3 Group, who have recently committed to a new six-year lease with one further right of renewal for six years leading to a final expiry of 30 September 2034.

Their lease agreement provides $320,000 plus GST in net annual rental income and includes annual increases and three-yearly market rent reviews.

The highly functional property has multiple offices, two separate warehouse spaces, a basement, and loading dock. There are also 30 on-site car parks and room for multiple containers.

The Rosebank Peninsula is one of Auckland’s most sought-after industrial precincts given its favourable proximity to the CBD and Ports of Auckland. The nearby motorway interchanges provide convenient access to State Highway 16, while the Waterview Tunnel offers connectivity to South Auckland and the airport.

“The property provides a steady rental stream and the built-in rental growth through future annual increases and market rent reviews will be highly appealing for buyers.”

The 2,053sq m building consists of 534sq m of office facilities, 1,295sq m of warehouse area, and 112sq m of amenities space. There is also a small basement measuring 57sq m and a 55sq m loading dock.

O’Brien, Director at Colliers Auckland North, says the building presents in magnificent order following the recent refurbishments.

“The property has a new roof and front facade, while there have been a range of high-quality upgrades made to the office space, which will enhance the usability and functionality for the occupants,” O’Brien says.

“Originally designed for two tenancies, the large-scale site also offers excellent road frontage.”

Colliers Directors Matt Prentice, Jimmy O’Brien, Shoneet Chand, and Dhiru Patel have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Tuesday 11 October, unless sold prior.

Chand, Director of Investment Sales at Colliers, says the lack of available land supply in West Auckland means industrial property is tightly held in this high-profile location.

The G3 Group operates three principal business divisions, including document management and data management, business mail operations, and mailhouse and mail fulfilment services. They have achieved considerable business growth during the past decade and have ambitious future plans.

To continue reading and find out more, scan the QR Code colliers.co.nz/real-estate-news

BOUNDARY LINES INDICATIVE ONLY

Dual Tenancy Freehold Investment

Trophy Investment with Global Tenant

7 Airborne Road, Albany, Auckland

16-22 Omega Street, Albany, Auckland

For Sale by Deadline Private Treaty closing Tue 4 October 2022 at 4pm (unless sold prior)

For Sale by Deadline Private Treaty closing Tue 4 October 2022 at 4pm (unless sold prior) 15

BOUNDARY LINES INDICATIVE ONLY

Returning $239,720 pa net + GST

1,277 sqm Warehouse / office

Low vacancy location

5,865 sqm Freehold title

Returning $672,661 pa net + GST

3,267 sqm Warehouse / office

Matt Prentice 021 464 904

Matt Prentice 021 464 904

Shoneet Chand 021 400 765

Jimmy O’Brien 021 979 001

colliers.co.nz/p-nzl67020428

colliers.co.nz/p-nzl67020432

Fixed rental growth

Gareth Fraser 021 242 6779

BOUNDARY LINES INDICATIVE ONLY

Refurbished Industrial Investment – New 6 Year Lease

New Long-Term Government Leases

14-18 Honan Place, Avondale, Auckland

506 Eastbourne Street West, Hastings

For Sale by Deadline Private Treaty closing Tue 11 October 2022 at 4pm (unless sold prior)

For Sale by Deadline Private Treaty closing 4pm, 18th October 2022 (unless sold prior).

3,144 sqm Freehold title

Returning $320,000 pa net + GST

2,053 sqm building + 30 carparks

Low vacancy location

$542,946.82 net rental pa + GST

Matt Prentice 021 464 904

Jimmy O’Brien 021 979 001

Jack Elliott 021 876 765

Shoneet Chand 021 400 765

Dhiru Patel 021 340 780

Danny Blair 021 826 496

colliers.co.nz/p-nzl67020539

48 onsite car parks

New extensive redevelopment

colliers.co.nz/p-NZL67020706

Colliers Portfolio

1,603 sqm Freehold title

ARTIST’S IMPRESSION

Brand New Industrial Investment – As good as it gets!

Industrial owner occupiers must inspect

9 Inanga Street, Hobsonville, Auckland

Unit K, 41-53 View Road, Wairau Valley

For Sale by Deadline Private Treaty closing Tue 11 October 2022 at 4pm (unless sold prior)

Auction to be held Wed 12 October 2022 at 11am (unless sold prior)

16 6 Year lease term

Returning $548,560 pa net + GST

Nov 2023 Completion

Colliers Portfolio

Reputable developer (KEA Property Group)

Matt Prentice 021 464 904 Jimmy O’Brien 021 979 001

Josh Coburn 021 990 691

Office warehouse 727m²

Own occupy plus rent of $42,000pa

3 separate tenancies

Mike Ryan 021 402 461 Matt Prentice 021 464 904

colliers.co.nz/p-nzl67020541

colliers.co.nz/p-nz67020548

Multi Unit Opportunity - Buy One or Buy All!

Industrial Land For Sale

Unit 1, 2, 3 & 4, 33 Spartan Road, Takanini For Sale by Asking Price, enquire with the nominated brokers below.

Lot 17, Drury South, Drury For Sale by Deadline Private Treaty closing Wed 19 October 2022 at 4pm (unless sold prior).

Z Split risk investment Ash Vincent 021 448 201

Four sites totalling 3,599m²

Dual street access

Mitch Broderson 021 166 7225

colliers.co.nz/p-nzl67020673

1.505 ha site

Light Industry zone

Paul Jarvie 021 337 419

Brad Johnston 021 409 553

Title est.

October 2022 Matthew Barnes 021 828 563

colliers.co.nz/p-nzl67020649

News

Case Study | Evolution Healthcare Location

Asset Type

Transaction Date

Size

Value

New Zealand and Australia

Healthcare

23 May 2022

11 Private Hospitals

$100m+

Buyer: NZ Healthcare Bidco

•

Existing and future competitor supply analysis for each asset within specific catchment areas using innovative technology such as QGIS

•

Providing insights and identifying risk areas within the healthcare sector, including barriers to greenfield developments, rents, development returns, and the occupancy status of comparable assets

Seller: Evolution Healthcare Services provided: Real estate asset due diligence

The Challenge

In 2021, Queensland Investment Corporation (QIC), a key owner of NZ Healthcare Bidco, appointed the Colliers Strategic Advisory team to complete real estate asset due diligence, to support the corporate acquisition of Evolution Healthcare. Evolution Healthcare is the secondlargest corporate hospital platform in New Zealand. The complexity of the project was such that QIC engaged with multiple external advisors. The project was also highly confidential and fast-paced.

The Strategy

Strategic Advisory’s consulting focused on providing detailed insights for each healthcare asset that QIC could use to support its decision making. A key focus was highlighting any risks and opportunities associated with each asset. This included reviewing more than 100 complex documents in detail.

The Solution

The Strategic Advisory team used their expertise to produce a consulting report that incorporated various issues including: •

Asset and lease due diligence for 10 properties in New Zealand and one in Australia. This included an in-depth review and summary of each lease, seismic assessments, and development agreements

•

Demographic profile and demand analysis for each asset within specific catchment areas using innovative technology such as QGIS

The Result

Using the advice produced by Strategic Advisory, NZ Healthcare Bidco successfully acquired Evolution Healthcare for more than $100 million. The Overseas Investment Office decision on the sale was finalised in May 2022. The Strategic Advisory team were pleased to help QIC achieve its goals, after a competitive process with multiple interested buyers.

Interested in finding out more about our Strategic Advisory services? We offer a comprehensive range of services to help clients make big real estate decisions.

Alan McMahon National Director | Strategic Advisory +64 21 677 886 Renée Lintott Senior Analyst | Strategic Advisory +64 9 357 8637

News

Colliers shines at REINZ Awards Colliers collected three major awards at the 2022 REINZ Awards for Excellence that were held in Auckland this week.

more than $215,000. This marked the single largest donation ever given to the Motor Neuron Disease New Zealand foundation.

The Colliers Highbrook office in South Auckland was named Medium Commercial and Industrial Office of the Year, marking the ninth time the team has collected this honour in the past 10 years, while Colliers North Shore won the Small Commercial and Industrial Office of the Year award.

The Colliers Hawke’s Bay office was a finalist in the Small Commercial and Industrial Office of the Year award, while Colliers was also a finalist in the Large Commercial and Industrial Office of the Year category.

For the fourth time in the past 10 years, Greg Goldfinch, National Director of Industrial at Colliers, was named the Commercial and Industrial Salesperson of the year, capping a fantastic run of market-leading results.

Mark Synnott, CEO of Colliers New Zealand, says these awards recognise the organisation’s continued commitment to delivering the best possible outcomes for their clients.

“We take great pride in receiving these awards and I am incredibly proud of our team members who continue to work collaboratively with our clients to ensure we remain trusted property advisors,” Synnott says.

“I look forward to seeing what our team will achieve next and challenge them to continue to raise the bar higher each year.”

But it was the Commercial and Industrial Salesperson of the Year award that was the most notable as Colliers dominated the category with all four finalists.

While Goldfinch claimed the award, North Shorebased Directors Shoneet Chand and Matt Prentice were recognised alongside Sam Staite from Colliers Christchurch.

“It’s a tremendous honour to receive this award and I am truly humbled by the recognition from REINZ,” Goldfinch says.

“It is an amazing achievement for Colliers to have all four of the finalists in this category, which is something I have never seen before, and it’s a testament to the dedication our team members bring to their respective roles.”

Established in 2008, the Colliers Highbrook office is home to some of New Zealand’s top industrial and investment sales and leasing professionals.

Alongside the award winners, Colliers was recognised in several other areas with team members and offices being finalists in various categories.

Led by Goldfinch and Director of Investment Sales Matthew Barnes, the Highbrook team includes 24 Brokers who are consistently among the top revenue earners across the Colliers network in New Zealand and during the past year they transacted more than 310 deals totalling $1.6 billion in value.

Colliers Highbrook was named a finalist in the Medium Community Award for their outstanding fundraising effort last year to support Motor Neuron Disease that generated

“It’s a privilege leading the team at Highbrook. They are incredibly hardworking and talented but most importantly they are quality people,” Goldfinch says.

Colliers North Shore, based in Takapuna and led by Director Jimmy O’Brien, transacted nearly $1 billion worth of deals during an outstanding year of results.

“Our clients always come first for us, and we thank REINZ for this award and look forward to the challenges the next year will bring.”

This year marked the fourth time in the past five years the team has been recognised as the best Small Commercial and Industrial Office in New Zealand.

The 2022 REINZ Awards for Excellence, held at the Cordis in Auckland on Tuesday night, saw 41 awards handed out to different sectors of the real estate industry.

“We are thrilled to have received this award and are incredibly proud of the collaborative team culture we have in our office,” O’Brien says.

Experts choose experts Winners of 2022 REINZ Awards of Excellence Colliers Highbrook Medium Commercial and Industrial Office of the Year

Greg Goldfinch Commercial and Industrial Salesperson of the Year

Colliers North Shore Small Commercial and Industrial Office of the Year Finalists: Colliers Hawke’s Bay Finalist - Small Commercial and Industrial Office of the Year

Colliers Auckland CBD Finalist - Large Commercial and Industrial Office of the Year

Shoneet Chand, Matt Prentice, Sam Staite Finalists - Commercial and Industrial Salesperson of the Year

Colliers Highbrook Finalist - Medium Community Award

New Zealand Research Report September 2022

Retail markets navigating change Despite significant headwinds, a stabilisation in vacancy rates, the return of key support fundamentals, following the reopening of the border, and the adaptability of building owners and retailers offer reasons for optimism within the country’s largest CBD retail markets.

Vacancy Rates Stabilising 20 Colliers Portfolio

Strip retail vacancy within Auckland’s CBD stood at 13.8% in June 2022 according to the results of the latest six monthly survey conducted by Colliers Research. While still substantially ahead of the rates prevalent prior to the onset of the COVID-19 pandemic, the June result marks the first decline in vacancy recorded since the country’s initial lockdown in early 2020.

As at December 2019 vacancy stood at 1.4% but increased at each subsequent survey peaking at 14.4% in December 2021. The reduction in vacancy has been influenced, in part, by new entrants Auckland’s CBD market such as Van Cleef and Arpels which has opened on Customs Street and Pop Mart which has opened a store in Queen Street.

In Wellington, the CBD’s retail sector has proved more resilient than that of Auckland’s over the past two years Vacancy was recorded at 8.7% in June 2022 which compares with a pre pandemic figure of 4.1%. Vacancy increased over the opening half of 2022 influenced largely by the closure of the David Jones department store, a move which had been signalled well in advance. Reports of strong tenant interest in reconfigured space within the property points towards a short lived spike in vacancy.

Auckland Retail Vacancy Rate Current

6 Months

1 Year

Pre-COVID

Overall

4.9%

4.8%

5.0%

3.3%

Centre

3.2%

3.1%

3.5%

2.50%

Strip

9.5%

9.4%

9.1%

5.30%

CBD Strip

13.8%

14.4%

9.7%

1.40%

Source: Colliers Research

Wellington Retail Vacancy Rate Current

6 Months

1 Year

Pre-COVID

Overall

8.7%

5.6%

6.8%

4.1%

Prime

11.9%

5.3%

6.7%

2.9%

Source: Colliers Research

Auckland Retail Vacancy Rate by Sector

Looking at the wider Auckland regional retail markets, the latest survey results again paint a picture of stabilisation.

Overall retail vacancy stood at 4.9% all but unchanged, from the 4.8% recorded in June 2021. Once again it was the strip retail sector that continued to experience the highest vacancy rate at 9.5% this figure though was up only 40 bps from that recorded in mid 2021. Shopping Centres have proven the most resilient of the retail sub markets with vacancy remaining low at 3.2%.

Source: Colliers Research

Headwinds Persist but Key Support Measures in Place

Auckland v Wellington Retail Vacancy Rate

Whilst a majority of COVID-19 enforced trading restrictions have now been lifted, the retail sector continues to face significant headwinds arising from economic pressures.

Inflation has surged to 7.3%, the highest recorded in 32 years. Interest rates have been raised aggressively and a fall in house values has eroded the wealth effect.

Consequently, both the ability and willingness of consumers to spend has decreased. While these factors continue to act as a drag on the sector, support is evident and, in some cases, increasing following the reopening of New Zealand’s border.

Source: Colliers Research

Student numbers are also on the rise, having fallen to negligible levels over the last two years. While still well down on the 20,121 student arrivals recorded in July 2019, the latest figures from the Ministry of Business, Innovation and Employment (MBIE) show the number of people arriving in the country on student visas has risen for six consecutive months to 4,152 in July.

The trend towards greater provision of experience within stores has been building for the last few years with companies ranging from Nespresso to Lego opening experience rich stores. In 2020 a report released by Westfield Group forecast that more than half of retail space, within its European centres, will be devoted to experience rather than product by 2025.

Key Reasons to Shop more In-store in 2022

Physical Stores Still Provide Advantages The familiarity and acceptance of, online shopping increased significantly during COVID-19 enforced lockdowns exerting further pressure on bricks and mortar retailers. Figures compiled by NZ Post show that over the first half of 2022 Kiwis spent $3.64 billion online. This is 11% up on the same period in 2021 and a massive 81% up on the first half of 2019.

Over recent months however, online spending growth has stalled with total spending in the second quarter of the year down 4% on the corresponding period last year.

While online retail’s share of total spending continues to increase, growth has slowed as physical stores have reopened following the loosening trading restrictions.

Source: NZ Post, Colliers Research

How Shoppers Will Buy In 2022

Further, consumers continue to see benefits in shopping in-store. When questioned by NZ Post, survey respondents cited a range of reasons for preferring the in-store experience including the immediate availability of product, experiencing the product in person and the social aspects of shopping.

It is increasingly clear that the penetration of online retailing will continue to increase. However, for retail brands the physical store can be an important part of the mix with a high quality customer experience helping to drive business growth.

Adding Entertainment and Experience to the Mix Property owners and retailers are adapting to the changes in retail demand by reconfiguring property layouts and supplementing traditional retail offerings with a wider range of experiential options.

Source: NZ Post, Colliers Research

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The reopening of the border will stimulate further support for CBD retail markets driven by the return of both overseas tourists and students. The Tourism Export Council, in March 2022, forecast arrivals for the year to May 2023 to be about 56 per cent of pre-Covid arrivals. It expects a return to pre-Covid levels of 3.9 million arrivals a year by May 2026.

Shopping centres are increasingly, incorporating, within the retail offering, a mix of entertainment areas including bowling alleys, laser tag zones and amusement arcade.

While overall rental rates are generally lower than those paid by traditional retailers, they can activate quiet areas within the mall, increase footfall, attract family groups and extend the amount of time that people spend in the centre.

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Security of employment is another positive factor for the retail sector. Unemployment has fallen to record low levels which has driven wage increases. Figures released

by Stats NZ show median hourly earnings from wages and salaries rose by 6.8% in the year to June 2022. This was the largest annual percentage change since the series began in 1998.

Featured Brokers Matt Prentice

Ned Gow

Director | Investment Sales North Shore

Broker | Investment Sales Auckland CBD

M: 021 464 904 matt.prentice@colliers.com

M: 021 122 2731 ned.gow@colliers.com

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Matt joined Colliers in 2006 & for the past 6 years has been a Director of the Industry Sales and Leasing team, with a focus on mid to upper end industrial sales and leasing transactions. He is considered a trusted source & wealth of knowledge to both vendors & purchasers, with over 15 years in the industry and hundreds of transactions completed.

Ned forms part of the Colliers Investment Sales team operating out of the Auckland CBD office. His expertise range from his early experience in the industrial sector and current involvement in the commercial market. Ned specialises on Auckland’s competitive fringe market where he’s sold over $100 million worth of property since starting in 2018.

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Shoneet Chand

Danny Blair

Director | Investment Sales North Shore

Director | Hawke's Bay and Taupō

M: 021 400 765 shoneet.chand@colliers.com

M: 021 826 496 danny.blair@colliers.com

Shoneet has been involved in selling investment property for over 13 years and since 2015 he has been a Director in the Investment Sales Team at Colliers, specialising in Investment & Development Sales across the wider Auckland region.

Having worked in commercial real estate since 2006, Danny is a Director and shareholder of Colliers Hawke's Bay and Taupo. Danny has been involved in multiple transactions throughout the past decade, specialising in sales and leasing solutions for corporate tenants, government agencies, investors and developers alike.

Dean Collins

Jonathan Lynch

Director | Commercial Broker Dunedin

Associate Director | Investment Sales

M: 027 499 0974 dean.collins@colliers.com Specialising in commercial and industrial property since 2006, Dean’s local knowledge gives him an exclusive insight to one of New Zealand’s most tightly-held property markets and allows him to advocate on behalf of local and national clients for commercial and industrial properties of any size.

M: 021 900 611 jonathan.lynch@colliers.com Senior expert in Commercial Property Sales and Leasing in central and city fringe Auckland. Jonathan has completed over $500 million+ sales transactions over the previous 9 years since joining in early 2010 with a focus on investment properties, mixed-use developments, redevelopment sites comprising under-utilised improvements, land sales and office, retail and warehouse leasing.

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This document has been prepared by Colliers New Zealand for advertising and general information only. Colliers New Zealand does not guarantee, warrant or represent that the information contained in this document is correct.

September 2022