Heightened activity levels will likely return to the commercial property market in Wellington and potential investors who make acquisitions now have the chance to set themselves up for future success, according to Colliers Wellington Brokers.
Sales and leasing figures in the capital have been impacted during the past few years by a combination of factors such as constrained economic growth, rising insurance and rates costs, Government spending cuts, and general uncertainty that is driven by ongoing geopolitical tensions.
Projects are taking shape across the CBD that have the potential to revitalise the city in the coming years, with the Reading Cinema complex set to be repositioned and named The Court, while upgrades to the Te Ngākau Civic Precinct are expected to be completed next year.
Deals are still taking place, but buyers remain cautious. One recent transaction brokered by Colliers Wellington shows what opportunities are available for buyers who are willing to move early.
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A two-storey commercial building at 271 Willis Street was sold in May, marking the third time the premises had been put under contract over the past year but this time a successful outcome was achieved.
The new owner-occupier plans to complete refurbishment works at the property to house its business, WOTSO, a coworking firm that provides flexible workspace and has 36 locations across Australia. It is expanding its operations in New Zealand with Wellington marking its fifth site.
Tim Julian, Associate Director of Commercial and Industrial at Colliers Wellington, brokered the transaction with colleague Hamish Templeton.
"The purchaser was attracted to the property due to its prominent gateway position on the corner of Willis and Vivian Streets with southbound traffic from the motorway exposed to the property and the generous on-site parking. It also benefits from its proximity to key amenities," Julian says.
"The asset was effectively vacant when the new owner acquired it with holding income from two monthly periodic tenancies."
Julian says while Wellington continues to navigate economic headwinds, the tough times won t last forever.
"The challenge for buyers will be picking when the recovery will come because we have seen over many years that these situations are cyclical and the city will bounce back," Julian says.
"Savvy investors will recognise there are opportunities in the market for well-positioned assets with potential and those who make purchases now have the chance to capitalise when Wellington enters a new cycle of growth."
- Supplied by Colliers
