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The New Zealand commercial property market has been on the back foot over the last couple of years as investors grapple with high inflation and interest rates, increased operating expenses and subdued rental growth.
Winter is also typically characterised by a cooling property market.
Despite this, there are glimmers of optimism and opportunity in Warkworth and surrounding areas, where a range of commercial offerings – from established character sites to brand new developments and well-located bare land – is available to investors and owner operators alike. A brief selection follows.
The Grange
Two properties in The Grange are up for auction, presenting potential buyers with a choice of a fully leased investment eight years into a 20-year lease, or premises currently leased on a month-by-month basis, suitable for a wide range of professional users.
The 830 sqm property at 8 Fairwater Road has housed the Educare childcare centre since 2016, and brings in net rental income of just under $221,000 a year, plus GST, with annual fixed rent reviews.
With 12 years of the lease to run, and fixed annual rental growth of three percent, it’s described by Bayleys Ōrewa salesperson Kate Kirby as a solid bottom draw investment opportunity.
Nearby, 3/6 Fairwater Road is a 389.2 sqm freehold unit, currently leased to Warkworth Performing Arts on a monthly basis. Boasting good natural light throughout, it would be an ideal site for owner occupiers to operate their business, or as a passive investment, she says.
Both properties were listed on April 24 and will be auctioned on June 5. The vendors are a family trust that is winding down, and so wants the properties sold.
The Grange is centrally located off Old State Highway 1, a short drive from Warkworth Town Centre. It enjoys plentiful off-road parking, and close proximity to established major tenants including BP and McDonald’s.
Wharf Street
Also on the market and being advertised by negotiation is 2-6 Wharf Street in the heart of Warkworth, comprising three commercial spaces downstairs and a residential apartment and office space upstairs, over around 340 sqm of floor area.
The property, which was built in the 1980s, enjoys striking views overlooking the river and wharf – including from the balcony of the two-bedroom apartment.
Premium Real Estate Matakana Coast and Omaha agent Gail Van Reemst says it would be attractive to investors, but is also unique in that it offers potential as a home and income opportunity.
The three spaces downstairs are leased to Bam Boo restaurant, Hush Hair, and coffee shop Mr Grind Espresso, and the upstairs apartment is let. The upstairs office space is vacant, but the owners would consider negotiating a sale and leaseback option, with a guaranteed rental, to the right buyer.
Van Reemst says that several interested parties are currently conducting due diligence – “so watch this space”.
Queen Street
Right across the road on a strategic corner site, 10 Queen Street offers investors a rare opportunity to secure a piece of Warkworth’s history.
The landmark 165 sqm building on a 253 sqm freehold title was where Stubbs Family Butcher was established in 1922, operating for the next 77 years. Since 2014, it has housed Warkworth Butchery, a multiple award-winning business, which Bayleys in the North agent Chris Blair says has benefited from the property’s iconic status and design in its prime location.
Blair describes the property as a long-term investment opportunity in a tightly-held commercial market.
He says the expectation is that Warkworth Butchery will remain there for a long time to come – a position which owner Rob Lees reaffirms.
The Workshops Matakana
Selling well in Matakana are the units in the development under construction on Matakana Valley Road known as The Workshops.
The freehold strata title units, more than 60 percent of which have been presold, offer owner occupiers and investors a range of potential uses, including light industry, manufacturing, e-commerce, storage, distribution, trade showrooms and retail.
“It’s a great, high-quality development, very much in keeping with the look and feel of Matakana village,” Blair says.
The units come in various sizes and shapes. Various features available include kitchenettes, bathrooms, mezzanines, courtyards and decks. There will be plenty of car parking and visitor carparks, 24-hour CCTV security, and facilities for container drop off and loading and a boat wash area.
The developer is Conrad Properties, whose marketing director Hannah Wilkinson says work is going extremely well, and running ahead of schedule. With completion scheduled for next April, buyer interest is on the increase and sales rekindled during the first quarter.
“The development is being well received from those who want a base in Matakana where options are limited, and the offering is unique. We anticipate its delivery will change the landscape of commercial activity in the village.”
Snells Beach opportunity
Also being marketed by Bayleys in the North is a 1518 sqm fee simple landholding on Mahurangi East Road in Snells Beach, located between Liquorland and Hire Works, and not far from the petrol station, food options and the incoming Four Square supermarket.
Blair says the flat, regularly-shaped site, underpinned by business town centre zoning, would be suitable for a range of uses. The closure of The Warehouse has provided the opportunity for a reimagining of Snells Beach retail zone, he says.
Champion brewery for sale
Warkworth’s award-winning brewery 8 Wired is on the market, an offering that includes its premises in Warkworth, a taproom and barrel ageing facility in Matakana – and the brand that was named the overall champion brewery in New Zealand last year, the second time it had taken the top title.
Laurie Hatton of LINK Business Brokers describes the business as “a renowned, thriving, and iconic piece of New Zealand’s – and the world’s – bustling brewery landscape”.
He’s received a number of strong inquiries, including from outside the area, and says he is dealing with groups of well-qualified, well-resourced potential purchasers.
“There’s a significant number of people looking to buy good businesses now, especially businesses with opportunities for growth,” he says. “8 Wired is the best New Zealand beer brand platform to build upon.”
Hatton says current owners Søren and Monique Eriksen are determined to see the brewery flourish “and are prepared to support by working in the business while a new owner adjusts if required”.
8 Wired was born when Søren Eriksen was working for Renaissance Brewing Company in Blenheim and was able to use their equipment and tanks to produce his first two beers in 2009. Two years later, 8 Wired was crowned New Zealand’s champion brewery at the Brewers Guild Awards, an accolade it took again in 2023.
The Eriksons later moved the company to Warkworth and in 2019 opened its Barrelworks and Tap Room in Matakana.
Hatton lists business highlights of the offering including profitability, skilled staff, sought-after location, diverse customer base, award-winning product range, international brand awareness, reputation for quality and creativity and excellent production facilities.
