The Dunedin City Council is selling a corner site in Andersons Bay Rd.
Mr Cairns said the property was being sold as a lessor's interest (land only) with perpetually renewable leases of 21 years.
Colliers Dunedin recently sold three similar lessor's interest properties above valuations on behalf of the council for a total of more than $1 million.
The other Dunedin property was a modern office building in Vogel St, occupied by PGG Wrightson. The property had a long-term lease.
The commercial property market in Dunedin remained generally strong, he said.
"Well-located quality property with a solid cash flow is in high demand. Although business confidence has waned, the market for sound commercial properties has proven to be robust."
In Queenstown, an industrial investment site was up for auction in Frankton's Glenda Dr.
The corner site had a national tenant, and was in the heart of the modern industrial area.
Frankton remained the key growth area in the industrial sector because of a historical lack of supply and land able to support commercial uses.
Property in Oamaru had proven to be tightly held, and two recent deals had both been to local investors, Colliers investment broker Dick Thomas said.
He expected a commercial building in the town to be sold at auction.
The facade of the building was about to be upgraded and Classic Clothing had a 10-year lease with rights of renewal.
The properties would be auctioned in Christchurch on August 26.
