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Corporate consolidation trends underpin interest in regional office asset

A prominent office tower on the corner of a busy Palmerston North ring road offers occupiers the chance to consolidate operations into one highly efficient business site, Bayleys salespeople say.

The large commercial premises on 1,464sq m (more or less) of freehold land at 420 Church Street is in a prime location, offering exposure to huge traffic flows via the main thoroughfare around the city centre.

Bayleys salesperson Angus Findlay says the property is offered to the market at a time of recalibration for operators who have moved from the pandemic period into a phase of sustained rental escalation.

“Reasonably low vacancy rates have seen occupancy costs for prime office accommodation move higher, as a significant portion of the tenant market prioritises quality of space and staff productivity.

“Private operators have reassessed their business requirements in the wake of recent disruptions, and we are finding some businesses even shifting operations from urban centres into regional hubs like Palmerston North where the cost of acquisition and building management is lower.

Mr Findlay is marketing the property for sale by deadline with Bayleys colleagues Karl Cameron and Fraser Press, closing at 3:00 pm on Wednesday, 13th March 2024 (unless sold prior).

The property presents a total floor area of 1,415sq m (more or less) over three floors with 31 on-site car parks.

Bayleys salesperson Karl Cameron says the premises features glass and aluminium joinery with offices and a large boardroom benefiting from abundant natural sunshine.

“The current floorplan allows occupiers to alter the configuration to suit their business or leasing requirements.

“While the property is available with vacant possession, a few small office tenants currently occupy the ground floor.

“This arrangement provides a chance to collect holding income while a new purchaser puts the next step in place, and the split-risk nature of multiple tenancies offers flexibility and options for future occupancy.”

With its slogan ‘small city benefits, big city ambition', the Palmerston North District Council is currently working to deliver several high-value infrastructural upgrades to transform the city centre and increase access from the outer suburbs.

Bayleys Wellington commercial and industrial director Fraser Press says that Palmerston North has shed its rural image, having diversified into a district highly regarded for its educational and research facilities at Massey University.

“A significant increase in central and local government investment, together with private sector capital, are buoys for local commercial activity and continues to encourage operators to the region in search of value.

“Major projects, including the Manawatū-Tararua Highway, KiwiRail’s Regional Freight Hub, and various upgrades to infrastructure and facilities provide strong growth fundamentals for operators requiring streamlined access and connectivity to other parts of the Lower North Island.

“With its first-class fit-out, strategic city centre position and an abundance of vehicle parking, the subject property is expected to attract a good level of attention from owner-occupiers, national operators and add-value investors.”

Click here for more information on the listing.

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