Commercial Property Market Shakes Off Covid

The commercial and industrial property market is trading through the current Covid 19 lockdown restrictions with barely a hiccup with the Bayleys commercial team on track to have one of its best years ever.

Bayleys national director commercial and industrial Ryan Johnson says sales and leasing revenue for the first half of the current financial year is already nearly 75 percent of the previous full financial year to March 31, 2021.

“Nationally, we concluded close to 1,700 commercial and industrial transactions worth $2.6 billion from April to the end of September, more than double the value of deals done in the same six months of last year.

“Real estate agents are by nature an optimistic bunch but even we’re finding these sorts of numbers quite staggering, particularly when you consider that Auckland – which comprises a large component of the market – was in lockdown from mid-August for just over six weeks of the first six months of this financial year, mostly in full Level 4 lockdown when physical property inspections weren’t possible.

“This big growth in transactions is a combination of our increased market share and greater market activity which is a reflection of continuing confidence in property as an investment asset and in the returns that it is providing.

“The industry is also now well attuned to, and accepting of, lockdown protocols. Clients are forging ahead with their real estate strategies – whether they be recycling of property, deleveraging or acquisition – and are not letting Delta derail them.

“Accelerated technological advances have allowed online auctions to play out seamlessly and mean the necessary dottings and crossings of the finer details of sales and leasing agreements can be undertaken virtually.”

Alan Haydock, Bayleys’ leading commercial agent year-to-date, says the land sales market has been particularly active. He has sold close to $50 million worth of properties with development potential during the latest lockdown including a Jervois Road, Herne Bay property for $17.25 million, a Browns Bay site for $8.25 million and an Epsom site for $3.5 million; all sold last week.

“Purchasers of these types of properties are looking well beyond Covid because of the time it takes to get any development plans drawn up, consented and built.”

Ryan Johnson says Bayleys is now into the two traditionally busiest months of the year in the lead up to Christmas, with its final national Total Property portfolio of the year featuring 120 properties from across the country . “This is the largest Total Property we’ve produced in the last few years and is again reflective of the business-as-usual nature of the market as well as vendors looking to tap into the continuing strong demand for commercial property.”

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