Office block’s trinity of tenants answers prayers

A unique investment offering housing a national church organisation, an accountancy practice and a top IT repair service is up for sale in a key commercial hub on Christchurch’s city fringe.

The prominent more than 860-square-metre commercial office building sits on a freehold corner site of some 1,349 square metres in the Riccarton town centre. Its fully leased trio of tenancies generate a combined gross rental return of circa $166,000 plus GST per annum.

Bayleys salesperson Graeme Donaldson said the rich tenant mix and prime Riccarton commercial positioning would appeal strongly to buyers seeking a quality investment with upside potential.

“Anchored by three established occupiers, this property delivers a spread of income streams, reducing reliance on any single tenancy. The diverse tenancy profile enhances cashflow resilience and provides a diversified mix for long-term investment performance.

“With rents assessed against current market levels, there’s clear scope for new owners to enhance yield through active lease management and future renewals.

“Positioned within one of Christchurch’s most coveted commercial precincts, the property enjoys strong tenant demand and excellent connectivity. Proximity to the city centre, Westfield Riccarton, and key arterial routes underpins its ongoing appeal to a wide range of occupiers,” Donaldson said.

The property at 85 Picton Avenue, Riccarton, is being offered for sale by deadline private treaty closing on Thursday 21 May (unless sold prior). The sale is being marketed by Donaldson and colleague Steven Schwalger, of Bayleys Canterbury.

The two-level property fronting Picton Avenue, with access to Nelson Street, offers a net lettable area of some 864 square metres across three tenancies and a common area, including a shared ground-floor foyer. The building has a seismic rating of 73 percent of New Building Standard (NBS).

The site is supported by on-site parking for 25 vehicles, plus plenty of public parking along its two street frontages, an asset that adds to tenant appeal with dedicated car parking at a premium in the area.

The largest, nearly 400-square-metre tenancy with 11 car parks is occupied by Arise Church, a Pentecostal multi-campus church with 10 locations throughout the country. The current lease runs through to January 2027.

Service Plus Group occupies offices of some 215 square metres with five car parks on a current lease that runs to 2028, with rights of renewal extending to 2034. Founded in 1994, Service Plus has grown into one of the country’s largest independent IT and electronics service companies, endorsed by some of the industry’s leading brands.

A third tenancy, spanning 168 square metres (more or less) with seven car parks, is leased to accountants Meyer & Moody. The current lease expires in 2027, with two further two-year rights of renewal.

The Picton Avenue site sits within the Town Centre zone under Christchurch’s district plan, supporting wide-ranging uses including larger retail, hospitality, accommodation, and community and entertainment activities. This zone generally permits building heights of up to six storeys, or 22 metres, rising to 32 metres in the larger town centre of Riccarton.

Schwalger said the site for sale offered flexibility for future repositioning, or long-term land banking, in a proven location.

“Future prospects are underpinned by the site’s presence in one of Christchurch’s most dynamic and consistently performing suburban office and retail locations.

“Riccarton continues to outperform as a commercial office location. Robust demand for well-configured office space in this corridor is underpinned by limited quality stock and a growing professional services occupier base.

“As Christchurch evolves, Riccarton continues to offer investors' confidence through its established reputation, strong tenant demand, and long-term growth prospects,” Schwalger said.

The precinct is home to a strong mix of commercial, retail, and residential activity, with Westfield Riccarton – the South Island’s premier shopping destination – located nearby, drawing significant foot traffic and supporting surrounding business activity.

Schwalger said this amenity-rich environment enhanced occupier appeal, contributing to perennially low vacancy levels.

“Riccarton’s accessibility is another key driver of its ongoing performance, with major transport corridors including Riccarton Road, Blenheim Road, and nearby State Highway connections enabling easy travel across the city and beyond.

“The area is also well served by public transport and close to key institutions such as the University of Canterbury, further strengthening the local workforce catchment,” he said.