New-build office stock coming to the marketplace is largely pre-committed, and with substantial volumes of existing assets either being converted to alternative use, or unavailable due to ongoing seismic upgrades, office occupiers are finding it difficult to secure suitable footprint.

A five-level building zoned Central Area along the popular Thorndon Quay strip has been placed on the market for sale and with the New Zealand Police set to vacate the three upper office levels at the end of 2023, comes opportunity for a forward-thinking buyer.

The property at 190 Thorndon Quay occupies a 918sqm site with prime road frontage and is owned by a private local investor who is realigning their commercial portfolio.

The 1980s’ building is fully-leased, returning circa-$500,000 net until the end of next year, and is currently configured as ground floor retail with two associated car parks, secure car parking for 20 vehicles on level one, and approximately 1,692sqm office accommodation on the upper three levels accessed via lift and stairs.

Long-standing retailer BedsRus operates from the 404sqm ground floor space with a lease running through until late 2025, while Media 5 has billboard space on the top face of the building.

It is being marketed for sale by negotiation through Mark Sherlock, Bayleys Wellington Commercial.

Sherlock says an add-value investor or a developer could find the property a viable proposition given the location, low levels of vacancy in the area and potential to reposition the building in the market.

“There are a number of ways to look at this offering – each with upside and likely to find traction in the market.

“Keeping retail on the ground floor, the office levels could be refurbished into contemporary business accommodation in-line with current thinking around best and highest use of space for a modern workplace.

“Taking another tack, the upper three levels benefit from great natural light and harbour views so could be converted to residential apartment living, or the building could be suitable for a complete conversion into residential or hotel use – with development to 35.4-metres allowable.”

While currently at 67 percent new building standard (2012 report), Sherlock says additional strengthening could be carried out as part of any redevelopment or refurbishment.

“The existing tenants provide great holding income while planning and consenting is undertaken, and the realistic vendor wants this property sold.”

Thorndon Quay is a popular destination retail and trade-related strip with a high ratio of home design and improvement stores, and is an easily-accessible arterial.

The subject property is within 15-minute walking distance of the Wellington Railway Station.

There is other development underway in the broader area, with high-profile developer Stratum Management understood to be planning a hotel project.

Click here for more information on the listing.