Fashion Island’s fully leased commercial space within the PÄpÄmoa Mall has been released for sale, with 15 units available individually or together as a unit creating investment options for novice commercial real estate investors and seasoned.
The purpose-built neighborhood in the popular seaside community of Bay of Plenty is home to 19 businesses, including strong international clothing brands, local beauty and fashion service providers, and popular food stores.
Fashion Island is anchored by Cotton On Group which rents three units with an occupancy term until 2030, and includes other leading brands including Bonds, Bendon, Converse, Sheridan, Puma, Skechers, Amazon Surf, Decjuba and Burger Fuel – all on variable leases. terms.
The weighted average lease term across the compound is 4.86 years, and the property as a whole brings in net income of $ 1,279,982 plus GST with a rentable area of ââ3,420 square meters .
The day-to-day management of the assets and facilities of the point of sale enclosure is handled by professional Comac Retail Property Group managers with an appointed center manager, which agents say makes Fashion Island units a hands-off investment. optimal.
The L-shaped property sits on 8,790 square meters of land within a larger integrated commercial footprint in downtown PÄpÄmoa which has been developed over the past 15 years, and where businesses include large actors like Miter 10, PAK’NSAVE, Repco, KFC, TAB, three large commercial banks, as well as the PÄpÄmoa Plaza.
Marketed by Ryan, Brendon and Lynn Bradley of Bayleys Tauranga, Fashion Island will be sold through Deadline Sale, which ends Monday, December 6, unless it sells out before.
Ryan Bradley said the property has been recently renovated and refreshed, with an 80% tilting slab concrete and steel structure of a new seismic construction standard, and new signage pedestals making the enclosure even more visible.
âIt’s a successful fashion mall, well supported by the local residential basin, and one that gets particularly busy during holiday periods when visitors to the wider Bay of Abondance area are looking for beach wear, surfing and recreation at a good price.
“Supported by mainstays like Bonds – which have been trading for over 10 years at their current location – and Bendon, the mall has a reputation for being good value for money and has become a shopping destination.”
The pandemic environment with its ‘shop local’ mantra has seen Fashion Island’s convenient and accessible location work in its favor, hitting residents of the wider region at home.
âThe personalized service offered in a physical fashion store cannot be replicated online and the center also offers a nail bar and a clothing alteration business – two services that cannot be obtained virtually and require interaction in the shop. face to face.
Likewise, the food companies Burger Fuel and Seafood Collective have offered invaluable one-click salvage services once the alert levels allowed them to do so, and they have stayed busy as people tire of cooking them. themselves at home and choose to support local businesses.
With investors around New Zealand actively seeking profitable commercial properties and with interest rates still low, Bradley said he would expect values ââbelow 5% to be obtained on the units. of Fashion Island.
âThe units occupied by the biggest international rental brands could reach the 3 to 4% mark, taking into account the length of the leases and the weight of the tenant’s commitment.
âWith the commercial space in PÄpÄmoa at full capacity now, these units with shorter tenure durations may also attract homeowners looking for space in an established center in the medium future. “
Ryan Johnson, National Commercial Director of Bayleys, expects investors to see real value in the offer.
âWell-located and fully leased retail locations in areas with high growth potential remain in demand and in many cases offer very good value for new investors in the commercial sector,â he said.
âWith industry data confirming that large format and non-discretionary retail operators like supermarkets are thriving under pandemic conditions, there is also a real opportunity for other retail centers located nearby. of these supermarket operators to take advantage of the large volumes of traffic and the high pedestrian traffic.
âRetail card spending increased in September as alert levels eased outside of Auckland and GlobalData research projects the clothing, footwear and accessories segment of the retail market to grow by 5. 1%, and is expected to reach $ 6.7 billion by 2025. “
Fashion Island tenant sales data supports this trend with a compelling model of strong growth in retail spending in the center, with sales growing exponentially year over year since 2017 with an increase of 40 % of sales since the beginning of the year.
Bradley said that with the time-tested market release fashion segment in PÄpÄmoa, Fashion Island is even more future-proof in the immediate market.
âUsage clauses are in place which means this is the only authorized outlet center in the PÄpÄmoa retail area, giving confidence and certainty to current business operators.
“Factory outlet is, by definition,” any retail outlet where customers can continuously purchase end-of-line, end-of-season, or specially manufactured branded products at lower retail prices. normal retail prices â. “
City council projections predict that PÄpÄmoa will experience the strongest growth of any Tauranga suburb, growing from 29,018 to 40,339, representing 47% of the city’s growth over the period.
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