A centrally located commercial building in The Square in Palmerston North is available for purchase and offers buyers the opportunity to acquire an asset with a functional layout and prominent street presence.
37-40 The Square is a two-level property with 1,067sq m of net lettable area on a 1,009sq m freehold site.
The asset is fully leased with two office occupiers and retail store the Rockshop, while there are seven on-site car parks at the rear of the building. The total net annual rental income from the property is $281,009 plus GST.
The building is positioned within the tightly held south-western quadrant of The Square, an area that is widely regarded as the retail and commercial heart of Palmerston North.
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This prominent CBD location benefits from strong pedestrian flow, excellent visibility, and immediate proximity to a wide range of established national retailers, professional offices, hospitality operators, and service providers that underpin consistent daily activity.
Colliers Directors Danny Blair and Doug Russell have been exclusively appointed to market the property for sale with an asking price of $3,750,000 plus GST, if any.
A R Short & Co, an accountancy firm, leases 507sq m of space on the first floor. Their three-year lease began on 1 June 2025 and has one further right of renewal for three years. There is a market rent review on renewal.
The Rockshop leases 320sq m of retail space on the ground floor and their tenancy has a final expiry of 6 August.
The other tenant is Te Wakahuia Manawatū Trust which occupies 266sq m of space on a four-year term that began in September 2024. Their lease has three two-year rights of renewal, and the agreement includes CPI rent reviews.
Blair, Director at Colliers Hawke s Bay, says this modern, purpose-built commercial building enjoys frontage to The Square and offers high levels of functionality for the existing tenants.
"The property provides investors with a diversified split income and there is scope to grow the rental return through reimagining the tenancy mix when one of the leases ends," Blair says.
"With an asking price in place, buyers have an indication of where the asset is placed in the market, and they have the opportunity to acquire a building that shapes as a compelling investment opportunity."
Russell, Director at Colliers Palmerston North, says the premium CBD positioning of the property gives buyers the chance to purchase an asset that benefits from accessibility and high levels of nearby foot traffic.
"The property enjoys seamless connectivity to the wider city via key arterial routes including Main Street, Rangitikei Street, and Fitzherbert Avenue, providing direct access to State Highway 3 and the broader Manawatū region," Russell says.
"Popular local amenities are a short walk from the property, while the retail hub of The Plaza is a few minutes away, providing access to a range of food and shopping options, alongside key commercial services.
"This strategic positioning ensures convenient access for staff, clients, and customers alike, while reinforcing the property s appeal within one of the lower North Island's most established and vibrant regional centres."
- Supplied by Colliers
