“Parnell Snapshot” – The Resurgence Continues
May 3, 2016
High levels of activity within the office leasing sector has seen Parnell’s office vacancy rate fall to its lowest level since 2005. Results of Bayleys Research’s most recent office vacancy survey shows just 6.0% of offices in Parnell are vacant, down from 13.1% recorded at the same time last year. Parnell outperformed all of its City Fringe counterparts as shown by the vacancy results below:
|
ANNUAL 2016 AUCKLAND CITY FRINGE VACANCY RATES |
||
|
Precinct |
2015 |
2016 |
|
Parnell |
13.1% |
6.1% |
|
Newmarket |
14.0% |
10.7% |
|
Newton |
19.2% |
15.1% |
|
Grafton |
15.6% |
13.0% |
|
College Hill |
5.1% |
7.5% |
|
Overall |
13.7% |
10.5% |
Information Technology & Computing related companies are the biggest occupants of office space in Parnell, followed closely by marketing companies and then businesses within the property sector.
Demand for quality offices in this precinct remains strong, particularly for tenancies that can provide ample on-site car parking. The lack of availability has resulted in upward pressure on rental levels for the better quality spaces with rentals in excess of $300 per square metre now common place. Recent leasing includes:
|
|
Date |
Floor Area |
Car Parks |
Floor Area Rate ($/m2) |
Car Parking ($pcpw) |
|
Part Level 1, 56 Parnell Road |
Feb, 2016 |
202 sqm |
2 |
$325.00 |
$50.00 |
|
100 Parnell Road |
June, 2015 |
297 sqm |
7 |
$442.66 |
Included |
|
Level 3, 280 Parnell Road |
April, 2016 |
197 sqm |
5 |
$300.00 |
$60.00 |
|
86 Parnell Road |
January, 2016 |
225 sqm |
2 |
$350.00 |
$65.00 |
|
27 Bath Street |
April, 2015 |
336 sqm |
8 |
$330.00 |
$55.00 |
Demand from investors, owner occupiers and developers is also strong. However, a paucity of listings constrains transactional activity. As a result, property in Parnell that is offered for sale draws significant interest and purchaser competition has created premium results.
The most significant sale completed in Parnell this year is that of The Windsor Castle at 144 Parnell Road. Marketed and sold by Cameron Melhuish, over 100 enquiries were received for the property which offered opportunities for a range of purchaser types including investors, owner occupiers and add value investors. It was sold for $6,620,000 plus GST (if any) representing a 3.8% on its current income. Also sold this year was 14 Fox Street, Parnell for $1,735,000 plus GST if any. It consists of a 143 m2 building with four car parks on a 314 m2 site and was sold under the hammer with vacant possession. It has a Rating Valuation of $940,000 plus GST (if any). In the final quarter of 2015, Cameron also concluded the sale of 17 Falcon Street, Parnell for $3,500,000 plus GST (if any). It consisted of a modern 636 square metre building with 22 car parks on a Mixed Use site with dual street frontages. Over 70 enquiries were received from a range of purchasers including investors, owner occupiers and developers for apartment conversion. Bayleys also sold 5 Birdwood Crescent for $4,680,000 incl. GST (if any). The character block of 8 residential flats on a sizeable landholding drew a huge level of interest which resulted in competitive bidding at auction result in 3.6% gross yield.
Further recent transactions include 86 Parnell Road for $8,625,000 + GST (if any) and 272 Parnell Road for $11,250,000 + GST (if any).
Currently up for sale is a unique mixed use standalone at 10 York Street, Parnell. It is being marketed by Cameron Melhuish, it consists of ground floor secure, covered car parking, a recently renovated professional office floor above and a meticulously refurbished penthouse apartment. Offered vacant possession, it offers opportunities for owner occupiers, part owner occupiers seeking a supplementary income flow, and investors. The building, which has a Grade A seismic rating is perfectly positioned, just a short walk from the vibrant Parnell Village. To view a video of this rare Parnell opportunity, click here.
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