An outstanding opportunity for owner-occupiers or astute investors to purchase an A-grade industrial property with vacant possession in the tightly held industrial precinct of Mt Wellington has become available.
The property at 8 Hotunui Drive is being exclusively marketed by Colliers and is for sale by Deadline for offers closing Tuesday 27 April at 4.00pm, unless sold prior.
Todd Kuzmich, Industrial Director at Colliers, who is marketing the property alongside colleague Ben Cockram, is expecting strong demand for the property which is a rare find in a hotly contested market driven by low interest rates and low vacancy rates.
“This outstanding industrial asset will suit owner-occupiers seeking a high-standard of premises looking to pay borrowing costs rather than rent in a low interest rate market, or investors looking to capitalise on the property’s inherent upside due to its attractiveness to tenants in a low-vacancy market.”
“Sitting on a 4,455 sqm freehold site, the building, originally constructed in 1985, has a net lettable area of 2,180 sqm comprising a popular ratio of approximately 70 per cent warehouse to 30 per cent office space.
“The property received an extensive renovation and refurbishment in 2011 and the warehouse roof was replaced in 2017.
“The sizeable warehouse benefits from being clear-span with high stud and three full height roller doors that open to a generous, fully secured and sealed yard of approximately 1,000 sqm.
“The two levels of offices present well, providing bathrooms on both floors, shower facilities and a breakout area. Air-conditioning throughout makes for a comfortable working environment.
“Completing the offering is approximately 31 car parks located directly in front of the office, providing valuable off-street parking for staff and customers.”
“The property also comes with a Spark cell-tower at the south eastern corner of the site that will provide some bonus income to the new owner.”
Located in Mt Wellington, the area is an established industrial location bounded by the other predominantly industrial suburbs of Penrose and Onehunga.
Ben Cockram, Industrial Associate Director at Colliers says the area is popular amongst light industrial users with its location in the centre of Auckland’s isthmus and transport links being among the main drawcards.
“Hotunui Drive runs directly off Carbine Road, one of the area’s main arterials, and this particular property backs onto State Highway One providing easy access to all parts of Auckland and beyond.
“There is a real lack of premium vacant industrial space available in Mt Wellington, which has continued to grow in popularity as Auckland expands.
“In addition, and making the property highly desirable for occupiers, the area is well-serviced by public transport, including a train station at Sylvia Park, alongside the wealth of amenity and services that New Zealand’s largest shopping centre offers.
According to Colliers Research, conditions within Auckland’s industrial leasing market remain extremely tight despite Covid-19’s disruption.
Vacancy across Auckland’s industrial precincts edged up only marginally to 2.4% in February 2021 from the 2.1% recorded in August 2020.
Chris Dibble, head of research for Colliers notes that it is likely that the upward trend in vacancy is close to, or already at its end.
“The rapid rebound in the economy, growth in online retailing, a booming construction sector and the prospect of massive government expenditure on infrastructure projects is fuelling tenant demand for industrial workspace.
“Demand from a wide variety of occupiers and a development pipeline that can’t keep pace has meant that vacant prime grade space remains in short supply, particularly within the region’s leading industrial precincts.
“In Mount Wellington leasing options within the prime grade property sector are negligible with a vacancy rate of just 0.1% recorded in February 2021, down from the 1.0% recorded a year earlier. The decrease in vacancy was recorded despite an increase inventory.”