A prime, commercial investment property and adjacent vacant lot in a prime city-fringe location are now available, offering both steady returns and significant future development potential, Bayleys brokers say.

Bayleys Auckland Metro Markets team, Jill Downie, Phil Haydock, and Alan Haydock are marketing the properties at 6 and 10 Mitchelson Street for sale by tender, closing at 4:00 pm on Tuesday, 11th March 2025 (unless sold prior).

The offering comprises a 2,163sqm standalone office building on a 2,267sqm (more or less) site, and a separate 1,693sqm empty lot currently utilised as tenant car parking. The two titles combine for a total landholding of 3,960sqm (more or less), including 69 car parks.

Downie says both parcels feature Business – Mixed Use zoning, permitting a wide range of commercial and residential development up to 18m in height.

“This dual-purpose asset balances immediate revenue with long-term development upside that could sustain a mix of commercial or residential space, or a new commercial hub, in line with the area’s growing demand.”

The office building at 6 Mitchelson delivers a diversified net income stream of $807,743 plus GST per annum. Tenancies include an onsite café and nine professional businesses across a range of industries, including education, property, recruitment, and accountancy – providing reliable cash flow and split-risk investment benefits.

Phil Haydock says the superior three-level, low-rise office building has been methodically refurbished to modern standards with natural light on all sides, offering premium facilities with minimal upfront capital requirements.

“Amid corporate occupancy cycles, the property’s A-grade seismic rating, contemporary fit-out, and diverse tenant mix ensure minimal capital outlay for the new owner,” he says.

Directly opposite the commercial standalone building, 1,693sqm (more or less) of Business – Mixed Use zoned land at 10 Mitchelson Street currently sustains 52 car parks that support the neighbouring tenancies. However, Haydock says its true value lies in the potential for redevelopment.

“The vacant site is a blank canvas for future-focused developers, and ripe for mixed-use transformation, supported by zoning that encourages creative mixed-use projects in a high-growth commercial and residential precinct.”

Bayleys Auckland Metro Markets senior director Alan Haydock agrees, noting that the wider Ellerslie community is experiencing significant growth and investment. “Ellerslie’s rapid development, driven by infrastructural upgrades and increasing demand for premium office spaces, makes this a well-timed acquisition.

“As demand intensifies for premium, strategically located offices and the shift toward mixed-use developments accelerates, the 6 and 10 Mitchelson Street parcels present a rare and compelling investment opportunity. With versatility and long-term stability at their core, the properties are primed to deliver value across market cycles – offering a secure foothold in one of the city’s most dynamic growth precincts,” Haydock says.