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News Release

Auckland

Corner Penrose site offers double cashflow opportunity

Two adjacent office buildings on a prominent corner site in Penrose are for sale exclusively through JLL.


 

 

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42 Olive Rd 12-14 Walls Rd small-min.jpgThe two available office premises are located at the corner of Walls and Olive Roads in Penrose, just 500m (six minutes’ walk) from Penrose Train Station and a five-minute drive (1.6km) from the Ellerslie-Penrose motorway interchange. 

JLL is running an expression of interest process for these fully tenanted buildings, closing on April 14. 

The opportunity involves a total site size of 4,150sqm and a net lettable floor area of 2,663sqm. This has proved an excellent earner for the current owner, currently returning $571,669 in net rental per annum. 

JLL’s National Director, Industrial Sam Smith and Commercial Sales and Leasing specialist Ian Hall are marketing this property. 

“There will be excellent rental upside for the new owner, with the potential to turn the ground floor into showroom space in the future,” Ian Hall says.  

“The new owner could also look to split the two buildings in the future, as they are on two unit titles. Owner-occupiers should certainly consider this opportunity.”

“Penrose has long been considered an excellent location for semi-industrial and office-based businesses, because of its location right on the arterial routes. It’s only 12km from Auckland’s CBD and 15km from Auckland Airport,” Sam Smith says. 

“In recent years the area has benefited from improvements in public transport, better amenities such as new cafes, modern office developments and Sylvia Park shopping centre just 10 minutes’ drive away.” 

The two-storey building at 42 Olive Rd has a net lettable floor area of 1,089sqm while 12-14 Walls Rd has 1,612sqm of space across three levels. There are 86 carparks, 75 of which are covered and 11 uncovered. 

“The site has a better parking ratio than many similar properties in the area,” Hall says. 

The concrete and steel buildings were constructed in 1986 and have an A+ seismic rating with an evaluation of 276% of new build standard. 

Hall says the tenants appreciate the convenience of the location and the standard of the facilities. 

“Sky Network Television is the tenant at 42 Olive Road and 12-14 Walls Road is home to Te Puni Kokiri – Ministry of Maori Development, Aqua Cars and Blackhawk Tracking Systems,” Hall says. 

​​​JLL predicts Southern Corridor rents will lift over the coming year, making this a strong investment opportunity. 

Yields are forecast to compress further, as the fringe and suburban office markets continue to receive flow-on demand from the CBD. Average yields are forecast to firm to 6.9%, a result of positive economic environment and increasingly competitive investment conditions in the CBD.

JLL sees take-up of office space trending strongly in the Southern Corridor. 

“Penrose remains a popular office location for small and medium-sized businesses as well as major corporates. These organisations appreciate the accessibility of transport arterials, higher on-site parking ratios and more economic occupancy costs, compared to CBD and city-fringe locations,” Hall says.