Businesses are being offered the opportunity to own and occupy an industrial property in a prime location in Upper Hutt, Wellington, at a time when vacancy rates are historically low.
The property, at 132 Whakatiki St, contains a high-stud industrial building and a large yard backing on to State Highway 2. It is being marketed by Vince Southee and Tim Julian of Colliers International, by deadline private treaty closing on April 19, unless it sells before the deadline.
The opportunity to purchase a functional and well-located industrial building, and secure premises for business operations into the future, is expected to appeal to the owner occupier market, says Southee.
“This is a great chance for an owner occupier to buy property in a market where there is low vacancy and high buyer demand. With the affordable borrowing rates that are still on offer, we are seeing many businesses opting to own their own premises and secure their future property requirements.”
While the property is offered for sale with vacant possession, the building recycling business which currently occupies the property is also available for sale, Julian says.
“The current occupier, Ironman Building Recyclers, is offering the business and stock for sale along with the property. This opens up an opportunity for a business buyer to acquire a well-located property as well as a well-established local recycling operator.”
The 1150sq m building has three clear-span bays, four roller doors, offices and amenities. Each bay could be partitioned to create separate tenancies if desired. A large yard of approximately 2230sq m is also on site, providing ample space for storage, parking and vehicle manoeuvring.
The building sits on a 3383sq m freehold site with direct access to SH2 and visual exposure to over 20,000 vehicles passing every day, says Southee.
“This is a prime position with immediate access to a main regional transport route. For businesses and investors looking to secure assets in a tightening market, this property offers a great package including location, size and adaptability to a variety of uses.”
The property is zoned Business Industrial under the Upper Hutt District Plan. This zone permits warehousing and manufacturing, trades workshops and some retail uses, with a maximum building height of 12m.
The opportunity to buy industrial property at a time when Wellington’s industrial vacancy rates are the lowest in 30 years is also expected to appeal to the market, Julian says.
Colliers International’s latest research shows Wellington industrial vacancy has reduced to a record low of 2.9 per cent. This is the lowest vacancy rate in the industrial market for a generation, and is resulting in strong rental and value growth.
“In a relatively small industrial market such as Wellington’s, a vacancy rate of less than three percent means that many tenants will have no options in the size and configuration that they require,” says Julian.
“It’s often a different story in larger centres such as Auckland, Sydney, Melbourne, Brisbane and even Christchurch, where a three percent vacancy rate means there will still be a reasonable range of options for tenants and owner occupiers, due to the bigger scale of the market.”
Industrial property in Wellington has been taken up quickly over the past few years, to the extent that there are now very few options available for businesses looking to move, says Southee.
“This is due to stronger tenant demand and practically no new supply, along with a reduction in the number of industrial buildings in the market.”
Whakatiki Street is located in a popular industrial precinct which is also home to MSD Animal Health (formerly Schering Plough), Allied Engineering, Peryer Construction, Runciman Buses, Farrah’s Wraps and Hyundai.
The area is conveniently located close to Upper Hutt CBD, 15 minutes’ drive from Lower Hutt and 25 minutes to Wellington CBD and CentrePort, Southee adds.