I’ve been managing commercial property in Christchurch for a while now, and over that time I’ve seen a lot of investors make the same mistakes. Not because they don’t know what they’re doing — but because some buildings have a way of looking perfectly fine on paper right up until the moment they become your problem.
Here are three types of buildings I’d walk away from, and what I’d want every commercial property buyer in New Zealand to understand before they sign anything.
1. Buildings With Oversized Common Areas You Can’t Monetise
Big, impressive reception areas might look great in a listing photo. But if you can’t lease that space or recover the operating costs through your outgoings regime, you’re essentially subsidising dead space out of your own pocket.
In commercial property, every square metre needs to earn its keep. If you’ve got a grand atrium or a sprawling lobby that tenants won’t pay for in their net lettable area, and you can’t legitimately recover the maintenance and utility costs through opex, that space becomes a liability. I’ve seen landlords genuinely surprised by how much an oversized reception area costs to heat, clean, and maintain — with nothing to show for it on the rent roll.
Before you buy, understand exactly what’s included in the net lettable area calculation and how common area costs are allocated. If the numbers don’t stack up, that beautiful entrance isn’t an asset — it’s a monthly cost centre.
2. Buildings With Awkward Floorplates
Odd shapes, low stud heights, poor natural light, columns in all the wrong places — these buildings are hard to love and even harder to lease.
A strange floorplate might not bother a single tenant who’s adapted their business to the space over many years. But the moment that tenant leaves, you’re left trying to market a building that simply doesn’t work well for most businesses. You can’t subdivide it easily. You can’t attract the quality tenants who have other options. And refitting it to modern expectations can cost far more than the purchase discount ever justified.
When I’m looking at a building, I’m always thinking about the next tenant, not just the current one. If I can’t picture a variety of businesses making good use of that space, I start getting nervous.
3. Buildings With Title or Encumbrance Issues
Easements, rights-of-way, cross-lease complications, and other title issues are the kind of thing that buyers often dismiss as minor legal technicalities. They’re not.
A poorly understood encumbrance can restrict how you develop or use a property, complicate your insurance, limit what you can do with the car park, or create friction with neighbouring owners that never fully goes away. And when it comes time to sell, those same issues will resurface in the due diligence process — often at the worst possible moment.
I’m not saying avoid every property with an easement. Some are genuinely minor. But I’d always want a proper legal review of the title before proceeding, and I’d want to understand the practical implications — not just the legal ones. What does this actually mean for how I’ll use this building? What does it mean for the next buyer?
The Bottom Line
Commercial property in Christchurch can be a great investment. But the market rewards people who ask hard questions before they buy, not after. If you’re looking at a building and something feels off — trust that instinct, and then find out why.
If you’d like a second opinion on a property you’re considering, we’re always happy to have that conversation. No sales pitch — just honest advice from people who spend their days inside these buildings.
Get in touch with South Town Management — hello@southtown.nz