Commercial market Hamilton.

[Aston]

We all know what's happening with prices in the Hamilton residential property market but can somebody please advise on what is happening to prices in the Hamilton commercial property market. I have a particular interest in Industrial property in Te Rapa.

[Rosco]

I think they have gone crazy!

I see a lot of empty buildings, selling as if they are full with a great tenant!

Ross

[Wayne]

Have a read of this article

http://www.nzherald.co.nz/property/news/article.cfm?c_id=8&objectid=11657078

[Anthonyacat]

So with the Hamilton commercial property market so strong, what's wrong with this place?

http://www.trademe.co.nz/property/commercial-property-for-sale/auction-936258096.htm

$5m price tag, $540k rent, over 10% pa in central Hamilton with established tenants - nothing too high profile, but a good timeframe; seems pretty attractive. But it has been listed since August - presumably 2015, but maybe earlier, who knows.

If I had $2-2.5m for a deposit I'd certainly be looking further, but I'd struggle to raise more than 25% of that right now. Seems like a good opportunity for a small group of buyers. Unless the place is a known leaker or earthquake risk perhaps. Anyone know anything I'm missing?

[Wayne]

maybe this bit
Considerable leasehold land area of 4,044sqm bordered by Victoria Street, Collingwood Street and Alexandra Street

[Davo36]

Yep that would do it!

[Anthonyacat]

My mind automatically corrected that to freehold! Naturally that's a big downside.

[SwissKiwi]

We hear talk of an 'Auckland Halo effect' and then talk of the 'Golden Triangle' of AKL>HAM>TGA where something like 50% of the NZ population are located.

And then the future Ruakura development.

Seems like the Hamilton Industrial precincts could be higher yielding alternative to Silverdale/Penrose/Mt Wellington etc, which is worth investigating.

[Scouser]

Been looking in Waikato for last 9 months - new to commercial - finally bought a couple of smaller offices in Hamilton ~ .5m each - seems to me hard to get much over 7% yield for OKish quality and the previously hard to sell stuff is coming out of the woodwork in 2017 - I'm hoping I've not bought too late for this cycle though I'm loving dealing with rational, polite human beings as tenants (as opposed to residential tenants) during the rent review process.