Iconic Wellington bar Molly Malone's location a hard sell says real estate agent

The building that once housed Wellington's iconic Molly Malone's bar is up for sale or lease - but the real estate agent says it might not be an easy sale.

The property on the corner of Taranaki St and Courtenay Place has stood empty since 2015 when it went into liquidation.

Built in 1907 - and originally called the Clarendon Hotel - the three-storeyed freehold property is on a 306sq m site and has a net lettable area of 919sq m, including balconies.

The building is earthquake prone and real estate agent Jim Wana told NZME that complicates a sale somewhat.

"Its current owner has owned it for some time and it requires a seismic upgrade - the current owner has consented to do that work, so my gig is to find a tenant or an owner operator.

"It's a bit of a project, quite a lot of work, as with any seismic upgrade."

It's not just the building's earthquake rating that makes selling it a challenge though. Wana says times are changing, and people are not jumping on prime hospitality leases like they used to.

"Interest rates are up, that affects commercial. I don't think the challenges will go away any time soon – they've come off a peak and we're having to deal with that, but we'll continue to find someone and put a deal together - that's the nature of real estate."

Chamber of Commerce chief executive Simon Arcus says it's "very interesting" to see the iconic building for sale.

"Businesses should be incentivised to make the most of these heritage buildings," he told NZME.

His comments come off the back of a Chamber of Commerce report which recommended the council work with businesses to revitalise disused, earthquake-prone businesses of which the capital has no shortage.

"There's no question for a long time Wellingtonians have said that strip of land from the Embassy Theatre to Civic Square needs revitalisation - people are ready for the change," he said.

He added that the city's heritage buildings are important as they add character – but it was crucial to balance this alongside the need for development.

"It's about competing priorities. Heritage for example is very important but you can't have a disused building sitting by itself not taking any action."

NZME has contacted Wellington City Council for comment.