A prominent three-level commercial property on a key city-fringe arterial road offers investors a compelling combination of income certainty and future possibility, underpinned by strong tenant covenants and a highly strategic position, Bayleys brokers say.

Bayleys investment sales director Tony Chaudhary is marketing the 1,383sqm (more or less) freehold site at 711 Mount Albert Road for sale by deadline, closing at 1:00 pm on Thursday 14th August 2025 (unless sold prior), alongside colleague Sanjay Vaziranni.

Located directly opposite the Royal Oak Shopping Centre, the fully leased property and its 42 on-site car parks generate a net contract income of $555,753 per annum (effective from 1 September 2025) from nationally recognised 24/7 gym franchise Snap Fitness and government-funded social service provider Te Pa.

Both tenants occupy their premises under long-term lease arrangements, which provide built-in rental growth through annual CPI reviews and market rent review provisions.

Chaudhary says that Snap Fitness occupies the 709sqm ground floor and 72sqm mezzanine (more or less) office on a six-year lease from March 2025, with renewal rights to 2039 and annual rent reviews of three to five per cent. Their lease includes exclusive use of 16 car parks.

“Te Pa occupies approximately 1,100sqm on the first floor with a lease running through to May 2031, plus renewal rights and CPI-linked increases capped at three percent.

“The organisation has a longstanding presence in the community, delivering reintegration and social services guided by Māori kaupapa, and holds 24 dedicated car parks.”

A recent seismic assessment rates the building at 70 percent of the New Building Standard (NBS), demonstrating strong structural integrity in line with modern compliance requirements.

Bayleys South Auckland Commercial and Industrial Sales broker Sanjay Vaziranni says the Business – Town Centre zoning classification under the Auckland Unitary Plan supports a wide range of uses, including commercial, residential, civic, cultural and leisure activities.

“This designation provides significant development flexibility for a range of intensification outcomes, subject to council approval.

“The property’s location, within a thriving suburban commercial hub, enhances its redevelopment appeal, while its split-risk income profile presents a compelling opportunity for passive investors and strategic landholders seeking both immediate returns and long-term potential.

“Royal Oak is one of Auckland’s most connected and amenity-rich suburban hubs, which continues to see increasing demand for service-based, retail and hospitality businesses from a growing population across the city’s southeastern corridor.

“The site benefits from exceptional visibility to a high level of passing vehicle and foot traffic, excellent access to key motorway interchanges, including State Highways 1, 10 and 20, and is near the Te Papapa (Onehunga) rapid transit station.

“Anchored by secure income from quality tenants and positioned in a high-profile, strategically located precinct, this asset offers a compelling blend of immediate returns and long-term development potential.

“As demand intensifies for mixed-use and Town Centre-zoned properties with strong locational fundamentals and future adaptability, 711 Mount Albert Road emerges as a standout investment in one of Auckland’s most sought-after suburban hubs.”