Main street site delivers diversified income

A high-profile, multi-tenanted investment at the centre of Whanganui’s commercial precinct is being brought to market, offering investors a rare opportunity to secure diversified income underpinned by established national and regional brands, Bayleys brokers say.

Bayleys Whanganui’s John Bartley is marketing the 1,472sqm (more or less) freehold property at 157-161 Victoria Avenue for sale by deadline, closing at 3:00 pm on Wednesday, 20th May 2026 (will not be sold prior).

Comprising 1,045sqm (more or less) across four tenancies, the asset generates a net annual income of circa $175,668 plus GST and outgoings, supported by a broad spread of lease covenants.

The tenant mix includes international quick-service brand Subway, established hospitality operator Café Anatolia, local retailer Sunny’s, and a long-term lease to the Whanganui District Council.

Bartley says the property’s position on Whanganui’s primary retail and commercial strip ensures strong foot traffic and ongoing relevance within the city’s economic core.

“Resilience here comes from the composition of income – multiple tenants, varied sectors, and a spread of lease events – rather than reliance on any single covenant.

“The tenancy mix is grounded in daily-needs retail and hospitality, aligning the asset with consistent foot traffic and repeat spend. This is complemented by a modest civic income stream, which adds a layer of baseline stability without driving reliance.

“Importantly, occupier commitment is evident. Subway’s investment in its fitout signals long-term intent and operational confidence in the location – a factor weighed increasingly by investors when assessing tenant quality beyond the lease document.

“In the current market, investors are prioritising assets that can absorb change, where income is diversified, review mechanisms are active, and tenants are embedded in the local economy. This property speaks to that brief,” he says.

Lease structures across the tenancies include a combination of CPI and market rent reviews, delivering built-in rental growth and reducing exposure to income stagnation.

Bartley says the staggered lease profiles, with rights of renewal extending through to 2044, offer both immediate income certainty and long-term continuity.

The property also carries a 75 percent New Building Standard (NBS) rating, offering confidence in structural performance and compliance, an increasingly important consideration in regional investment decisions.

Bartley says the offering reflects a broader shift in investor focus toward regional centres, where entry pricing remains accessible relative to metropolitan markets, yet underlying fundamentals continue to strengthen.

“Regional CBD assets with scale, profile, and diversified tenancy are tightly held, particularly where they are anchored by everyday trading activity,” he says.

“Whanganui benefits from a stable economic base, steady population support and a well-defined commercial core. Assets on the main strip continue to attract consistent tenant demand and long-term occupancy.”

Victoria Avenue serves as the city’s primary commercial spine, linking retail, hospitality, professional services and civic amenities, with proximity to key cultural landmarks including the Whanganui Regional Museum and Sarjeant Gallery. Strong connectivity and accessibility further reinforce its role as a central destination for both residents and visitors.

Bartley says opportunities of its scale and profile within the Whanganui CBD are rarely brought to market.

“For investors seeking a balanced profile of income security and future growth, this is a compelling proposition - a proven asset with diversified cashflow, positioned within a strengthening regional economy.