The Farmers building, a prominent fixture of Queen Street in the heart of central Auckland, is being presented to the market for sale by Colliers
Unit A, 210 Queen Street, Auckland is a five-level retail premises that has approximately 3,700sq m of floor area, of which 78 per cent is occupied by anchor tenant Farmers.
The property, which is zoned Business – City Centre Zone under the Auckland Unitary Plan, is being offered to the market as a fully leased, stratum in freehold investment opportunity.
Colliers Directors Blair Peterken, Josh Coburn, and Peter Herdson have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 16 August, unless sold prior.
Peterken, Director of Capital Markets at Colliers, says the property enjoys a premier position in one of Auckland’s most sought-after locations.
“The return to the office has driven people back into Auckland CBD and this landmark building has long been a fixture of the cityscape,” Peterken says.
“Amenities of every type are within minutes of the Farmers building. Shoppers have a wide array of transport options with Britomart Transport Centre a short walk away and the future looks incredibly promising with the City Rail Link set to offer further connectivity.”
Farmers occupies 2,908sq m of floorspace, while Factor X Limited trading as Gorman, leases the basement and a foreign exchange kiosk completes the tenancy schedule. The weighted average lease term of the tenants is just under five years.
The total net annual rental income from the property is $2,680,892 plus GST per annum. There is future rental growth on offer through annual CPI increases for Farmers and market reviews on renewal for Farmers and Gorman.
Coburn, Director of Capital Markets and Site Sales at Colliers, says the built-in rental growth will be highly appealing for prospective purchasers.
“Farmers is one of the most well-known brands in the New Zealand retail landscape and they are firmly established in this location,” Coburn says.
“Their current lease agreement runs until May 2028 and there are two further rights of renewal in place for seven years each. The annual CPI increases provide continual rental growth.”
Aside from the basement level, Farmers occupies the ground floor, mezzanine, Level 1, and Level 2 as part of their broad retail offering that appeals to shoppers from all walks of life.
Primary access is via Queen Street through automatic doors. There is also separate access to the mezzanine level from a retail arcade that connects with High Street and Durham Lane.
Dual escalators connect the ground, mezzanine, and first-level retail areas. Access to the second-floor storage and office area is via a lift. A loading bay and goods lift is located at the rear of the Farmers tenancy off High Street.
Sitting in one of the busiest spots on Queen Street, this strategically located property continues to benefit from increased foot traffic in the CBD through the influx of cruise ships and more people returning to the office following the easing of Covid-19 restrictions.
Pedestrian count data from Heart of the City notes that in Q1 of 2023, foot traffic was up 2 per cent on the previous quarter and remains on the road to recovery after the pandemic.
With the City Rail Link set to open in 2025, this prime property, that has frontage to Queen and Victoria Streets, will be perfectly positioned with Te Waihorotiu Station less than 500m away.
Herdson, National Director of Capital Markets at Colliers, says the opportunity to acquire one of the most recognisable retail assets in central Auckland is one that will draw significant interest among buyers.
“It is incredibly rare to see properties such as this one presented to the open market for sale,” Herdson says.
“There are compelling underlying investment fundamentals attached to this property and discerning buyers will note the potential on offer. We encourage all interested parties to contact us immediately.”