Residential
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How does your usual day look?
I start most days at 5.30am in the pool, then into the office to make my morning calls. From 10am, I’ll be out at meetings and inspections.
How did you start your career in commercial real estate?
Having grown up in a property family it never really crossed my mind that I would do anything non-property related. I often had dreams of being a developer but the risk kept me away from that game, commercial real estate offers a nice touchpoint with the development industry without so much of the financial risk associated with being directly involved in it. Took me a while to find my way into commercial real estate but it’s a very natural fit and one I really love now I’m here.
What do you enjoy most about working at Ray White Commercial? What makes Ray White Commercial different?
It’s a very well balanced business. While being a huge business with a massive international profile, everyone remains very approachable within the group from the top to the bottom. It’s that for me that sets the business apart from others.
What are your go-to property marketing methods that you present to your clients?
Our residential network is incredibly strong, so we’re leveraging off that in many ways. One way we’re getting plenty of traction and a jump on some of our larger competitors is by teaming up with a top local residential agent on properties that are mixed-use or have a significant residential component. This allows us to tap into both our commercial database, as well as our local residential agents' database/newsletter etc. Many of our competitors can’t compete with that, the rest choose not to - but our vendors love it!
Tell me about a unique success story?
Broadway - residential office.
Having a vendor that wanted to sell a strata’d office floor off-market, we tested out some potential purchasers within our database but didn’t have much luck. Again deciding to leverage off our local residential team's network we decided to pitch the property at a couple of the local residential offices, where we uncovered an interested party and transacted a successful sale. This resulted in a very happy vendor who was left both impressed by our thinking outside the box, and also the strength of the group's wider network.
Do you auction?
It’s early days in our business but we are definitely looking to build the business around auctions.
What’s the one thing you know now, that you wish you knew when you first started out?
How to track data effectively and efficiently.
What is your outlook for the commercial market in Auckland over the next 12 months?
We’re seeing exceptional demand for investments with strong tenant covenants, long leases and fixed rental growth. A lot of offshore capital is hitting our shores and driving cap rates, especially in the CBD to record lows - with half a dozen sub 5% sales in the last 6-12 months setting unprecedented levels in the Auckland market. We’re also seeing very strong demand for add value opportunities, however, anything that requires construction or full site development is very difficult to shift. Developers are cautious with build costs at record levels, and an abundance of development sites hitting the market as a result of the 2017 release of the Auckland Council Unitary Plan, allowing significant intensification on most land parcels within the Auckland region.
There has been a significant shift away from the apartment developments, with a lot more activity in the townhouse and land subdivision spaces. We expect to see this theme continue for the next 12 months - record low yields on investment assets, high demand for add value opportunities and a continued nervousness in the development sector with the large multi-national land developers being the most active in that space.
Finn Hurst - Ray White Commercial Auckland
0276 888 970
