Case Study: 220 Queen Street, Auckland – From Challenge to Stabilized Strategy

In May 2023, EMP took on the role of investment manager for 220 Queen Street, a prominent property in Auckland’s Midtown area. The asset, located on a prime corner site next to the Aotea train station, presented several challenges. Despite these obstacles, EMP has swiftly repositioned the property and made significant strides towards its stabilisation.

Asset Summary

Location: Prime corner site in Midtown Auckland, adjacent to the Aotea train station, a highly accessible area with significant foot traffic.
Property Type: Primarily comprises office tenancies, with a focus on sub-200sqm spaces.
Condition: The building was classified as a C-grade office offering, which reflected a deteriorated state in both aesthetics and functionality.

Challenges Faced

When EMP took over the management of 220 Queen Street, the property had several issues to address:

Month-to-Month Leases: A large proportion of the existing leases were on month-to-month terms, which contributed to uncertainty and hindered long-term stability.
Gross Leases: A high percentage of leases were...