A commercial building sitting on a high-profile corner site in Taupō’s city fringe that is home to a national brand is being presented to the market for sale.
Located at 2 Runanga Street, the property has 371sq m of floor area on a 405sq m site.
Longstanding tenant the Tile Warehouse recently renewed their lease for a further three years and there are two more rights of renewal available for three years each leading to a final expiry of 31 March 2034.
The current net annual rental income from the property is $61,750 plus GST and outgoings and there is a market review scheduled for 1 April 2027 and then two-yearly thereafter, providing the potential for future rental growth.
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The property benefits from its prominent position and enjoys extensive visibility with multiple street frontages, while it is only 400m to the heart ofTaupō’s popular CBD.
There is excellent parking available outside the building providing convenience for customers.
The surrounding area is populated by a range of businesses, including an under-construction Woolworths supermarket, Repco, Plumbing World, and a Resene Paints store, among a host of others.
Hugh Milloy, Investment Sales Broker at Colliers Taupō, has been exclusively appointed to market the property for sale via deadline sale closing at 4pm on Thursday 29 May, unless sold prior.
The subject building is mainly comprised of a retail tile showroom with a portion of the area allocated to warehouse space and a more recently added incoming and outgoing goods area with vehicle access and parking on the north-eastern corner of the property.
Milloy says the strength of the tenant covenant will be highly appealing for prospective purchasers given the property is occupied by a well-known brand.
“With more than 30 retail outlets across New Zealand, the Tile Warehouse has established itself as a household name among homeware brands,” Milloy says.
“This particular outlet has been occupied by Tile Warehouse since 2002 showing their strong commitment to the location and this functional building has proven beneficial to their operations and served them incredibly well.
“Future rental growth could be realised with market rent reviews, which will catch the attention of discerning investors.”
There is a long-term play on the cards for a buyer who may wish to occupy the site in the future.
“The new owner may choose to enjoy the steady rental stream before looking to utilise the property for their own purposes. While the current tenant has been in place for an extended period this is an option worth consideration.”
Taupō is one of New Zealand’s premier tourist and event destinations with domestic and international visitors flocking to the area every year to make the most of its beautiful natural landscape where activities like trout fishing, mountain biking, and skiing are popular.
The town also hosts a round of the Supercars Championship, the Ironman 70.3 New Zealand, the Lake Taupō Cycle Challenge, and an annual marathon alongside a plethora of other events and conferences.
Milloy says the property’s combination of having a strong tenant covenant in a highly visible location with the option of future occupation makes this an opportunity that warrants serious consideration.”
- Supplied by Colliers
