Underpinning the investment value of the tightly-held Thorndon Quay commercial strip in Wellington is the fact that there are currently no retail tenancies available for lease in the popular precinct.
This is expected to fuel investor interest in a fully-leased and refurbished retail showroom property at the railway station end of Thorndon Quay occupied by leading nationwide lighting supplier Lighting Direct – a company that has serviced the New Zealand market for nearly 50 years.
Lighting Direct Limited has a new 10-year lease from October 2020, with one, five-year right of renewal to be exercised. It is a full net lease with fixed annual increases to CPI, market reviews every three years and returning an income of $165,375 per annum plus GST.
Fraser Press and Jim Wana of Bayleys Wellington Commercial are marketing the property at 129 Thorndon Quay, which is zoned Central Area, with tenders closing 4pm Wednesday, 7th July.
Press said the north-facing immaculately-presented 500sqm building on 524sqm of freehold land was comprehensively-rebuilt and structurally restrengthened to 80 percent of new building standard in 2014, with a modern fitout reflecting the market-leading tenant.
“The property has great street appeal, with an attractive timber and glass frontage and wide steps up to the showroom entry doors,” he said.
“Around 80 percent of the building is utilised as a high-end showroom with suspended ceiling for display purposes, with the balance comprising a streamlined side dock which is accessed by a roller door at the front of the property.
“Thorndon Quay currently has convenient on-street parking and it’s such a popular destination retail strip with a high ratio of home design and improvement stores making it a one-stop precinct for DIY renovators and designers.”
Describing the property as a “classic bottom drawer investment”, Press said investors are on the hunt for well-located, well-maintained and fully-tenanted properties close to the city centre.
“Having a recognised, long-standing national brand as the occupier sweetens the value equation, as does the location just five minutes’ walk from the railway station, on an easily-accessible arterial.”
Jim Wana said the home décor segment of the retail market has seen an uptick post-COVID as homeowners reassess their surroundings having spent so much time within the four walls during lockdown phases.
“With people spending more time at home, and with a tight housing market seeing many home owners opting to renovate, redecorate or make subtle tweaks to their existing property rather than battling to find a suitable upgrade, retailers like Lighting Direct are trading very well,” he said.
“The latest Tony Alexander Spending Plans Survey showed a net 27 percent of respondents intend to dip into their pockets for renovations around the home, up from 19 percent in April, which the report refers to as a ‘big recovery’ in sentiment.”
The subject property is directly across the road from VTNZ, and next-door to TQ Café. A new project by Stratum Management is planned nearby.
Lighting Direct has 24 stores nationwide. The Thorndon Quay branch is one of three in the Wellington region, with others at Rongotai and Lower Hutt.