Gym site by hotel on the market
The space next to the Langham Hotel – identified by a red border - is occupied by Flex Fitness. Photo / Supplied
A large ground floor site occupied by a national gym franchise and facing the main entrance of one of Auckland busiest luxury hotels has been placed on the market for sale.
The 906sq m premises, with freehold stratum title, is occupied by 24-hour health and fitness club Flex Fitness, on a newly signed 10-year lease, and generates a net rental income of $188,500 a year.
The space at 15/103-105 Symonds Street, central Auckland, is being marketed for sale via private treaty by Bayleys’ sales agent Millie Liang.
“The site's closeness to a high-profile international hotel provides prospective buyers a great opportunity to leverage off New Zealand’s tourism boom,” Liang says.
"The 10-storey, 411-room Langham Hotel has an occupancy rate of about 84 per cent, and this will only improve as demand for five-star accommodation in central Auckland increases."
Liang says recent trends within the hotel industry to target business travelers, who want to maintain their exercise and healthy-living regime while away from home, will add value to the site.
Flex Fitness is the largest New Zealand-owned 24-hour fitness club, and operates in 13 locations across the country.
Bayleys’ research shows that most 24-hour fitness chains want to occupy ground-floor spaces in a central hub, and will pay a premium for being on a busy street corner or shopping mall, or similar location that attracts high-foot traffic.
In addition, gym operators' set-up costs aren't onerous, roughly matching that of retailers in many cases.
Liang says:15/103-105 Symonds Street is also close to Auckland's university precinct and main hospital.
She says annual rent increases are built into the terms of the lease as are market rent reviews.