Development or refurbishment opportunities for city-fringe commercial premises

A solidly-built commercial office block housing a prominent charity as its tenant is on the market for sale. The two-storey complex in the Auckland City fringe suburb of Morningside is home to the Muscular Dystrophy Association of New Zealand.

The building consists of two units, currently joined into one space, but with the amenities and fitout framework to potentially be reconfigured again back into two separate premises.

The first and bigger unit has a ground floor office space of 180square metres, with an additional 107 square metres of mezzanine office space upstairs. The second and smaller unit has a ground floor space of 62 square metres with another 62 square metres of mezzanine offices – for a combined total floor area of 412 square metres.

Jointly, the two tenancies have access to 10 car parks immediately outside the front door and to one side of the building. The property is owned by the Muscular Dystrophy Association, which has an agreement to continue leasing the property through until May next year – with a holding rental of $81,000.

The Taylors Road business zone property is being marketed for sale by Bayleys Real Estate with offers to purchase closing on June 9. Bayleys commercial leasing and sales specialist Scott Kirk said that with its prominent street frontage, the building offered considerable opportunity for high visibility corporate branding exposure, and would suit a small to medium sized business looking for cost-effective premises.

“The past few years have seen all businesses closely examine their overheads – of which rent is close to the top of the list. As such, there has been a radial movement outward from Auckland CBD by a number of small and medium sized companies – which has seen some firms move to the likes of Ponsonby, Parnell, and Grafton/Newmarket, and in turn, firms previously in those areas move to the likes of Greenlane, Kingsland… and Morningside,” Mr Kirk said.

“This trend of relocations to the CBD fringes, and the subsequent impact this has on residential and retail property, is further evidenced at nearby St Lukes mall where owner Westfield has received initial Auckland Council approval to add approximately 45,000 square metres of floor area.

“The future tenancy potential of this premises will dovetail into this growth, and Kingsland with its growing hospitality reputation just a short walk away, is making the commercial nature of Morningside more attractive to small professional service related companies such as design studios, ad’ agencies or internet-based businesses,” Mr Kirk said.

Originally designed as an industrial space with concrete floors and foundations within a steel portal frame, the Taylor Road Muscular Dystrophy HQ building was reconfigured and strata titled in 1998 to reflect a more commercial look.

The original exterior façade was redesigned to include a considerable amount of plate glass set into a modern aluminium framework. Outside, two galvanised steel architectural features project from the building to portray a modernistic appearance and with some architectural innovation this could be taken to a new level.

The building’s interior décor features suspended tile ceilings and painted plasterboard all benefitting from considerable natural light. The dual mezzanine floors are linked by two separate timber staircases. Additionally, immediately adjacent to the open plan reception area and general waiting room, there is a lift to the mezzanine floor.

The ground floor has a mix of partitioned offices, a meeting room, toilet facilities, and a lunchroom. Carpets and vinyl are laid throughout the premises – which is air conditioned by several externally-fitted units.

Fellow Bayleys sales person on the project, Marianne Murray-Brown, said transport infrastructure in the vicinity included a railway station on the Auckland/North West line, as well as a high frequency bus service on nearby New North Road.

“With a holding income from the incumbent tenant for almost a year, there is the opportunity for a new owner to gain any necessary planning consents for reconversion of the building back into two separate units, or to secure a single tenant in the space as is currently exists,” Ms Murray-Brown said.