Demand for suburban detail assets has picked up where it left off in 2024 as investors focus on high-growth locations that deliver immediate income through favourable lease terms, Bayleys brokers say.

One such asset generating interest is a commercial investment opportunity tenanted by four quick-service retailers in Ellerslie – a city-fringe community experiencing ongoing urban intensification.

Bayleys South Auckland Investment Sales director Tony Chaudhary is marketing the 242sqm (more or less) property for sale, closing at 2:00 pm on Thursday, 13th March 2025 (unless sold prior), alongside colleagues Tim Bull and Beterly Pan.

Situated at 128 Main Highway, the 341sqm (more or less) freehold site delivers a net annual income of circa $104,350 plus GST, from tenants including a takeaway, bakery, dry cleaner, and butcher’s shop.

Chaudhary says the outstanding suburban retail investment provides stable returns and exceptional potential for future value growth, underpinned by essential services that attract consistent foot traffic.

“The location’s enduring appeal, coupled with its low vacancy rates and the quality of the tenancy mix, ensures consistent demand in a market characterised by scarcity of similar assets.

“Each lease includes regular two-yearly rent reviews, with final expiries extending to 2030. Tenants contribute 25 percent of outgoings each, equating to approximately $10,000 per annum plus GST per tenancy. This robust schedule underscores the asset’s appeal as a low-risk suburban investment, strengthened by its future development prospects,” he says.

Recently confirmed with a Grade A seismic rating (95 percent of NBS), the property assured investors of strong tenant security and asset resilience. Bayleys South Auckland associate director Tim Bull says this aspect, combined with the site’s zoning, enhances its appeal.

“The Business – Town Centre zoning allows for a building height of up to 13m, presenting a rare opportunity for mixed-use redevelopment in a tightly-held location.

“Investors can maintain the current rental streams or unlock significant potential by integrating residential components in line with the ongoing urban intensification of the broader community.

“Main Highway is one of Auckland’s most established retail corridors, and this property commands an impressive 84.80m of frontage along the bustling strip. The premier location is further amplified by shared car parking and transport connectivity, including direct access to State Highway 1, Ellerslie Train Station, and Ellerslie-Panmure Highway. These strategic advantages ensure a continuous flow of commuter and local patronage, maximising exposure and reinforcing value as a performance investment,” he adds.

Surrounded by national brands and popular local businesses, the property sits at the centre of a dynamic suburban centre. Recent residential developments in the area have bolstered demand for well-located commercial spaces, supporting Ellerslie’s reputation as a desirable retail and business hub.

Bayleys Northwest senior broker Beterly Pan notes that this clustering effect contributes to the property’s strong trading environment. “Ellerslie’s retail precinct is the cornerstone of the community, benefitting from a mix of long-standing businesses and new entrants drawn by the area’s growing population and superior connectivity. This blend ensures sustained customer engagement and a vibrant local economy.”

As suburban centres across Auckland adapt to changing retail trends and residential intensification, this offering allows investors to capitalise on long-term growth drivers.

“Investors searching for new opportunities will find an attractive mix of stable, low-risk investment with a proven performance record and significant upside potential here,” she says.