Top quality North Shore industrial with ideal ratios and room to grow
A premium North Harbour industrial property is for sale with a short-term tenant and plenty of room for expansion.
Brokers say the property at 8 John Glenn Avenue provides multiple options for owner-occupiers, investors or developers seeking a foothold in one of Auckland’s most desirable business precincts.
Built in 2013, it comprises a 1,766sq m warehouse and office on a 4,442sq m freehold site with 1,265sq m of developable land.
A short-term lease expiring in August 2020 returns $270,000 in annual contract rent, providing useful holding income while a new owner plans their next move.
Directors Shoneet Chand and Matt Prentice of Colliers International are marketing the property for sale by deadline private treaty closing at 4pm on Tuesday 11 June, unless it sells earlier.
“This is undoubtedly one of the best warehouses on the North Shore,” says Chand.
“The property offers quality modern construction, a functional high stud warehouse, with a low office ratio of only 14 per cent – practically unheard of in industrial buildings of this era.
“With the benefit of short-term holding income, owner-occupiers will have plenty time to prepare for their move, while investors can start planning to add value via rental uplift.
“The large area of undeveloped land to the west of the site also provides plentiful opportunities. The land will appeal to developers looking to add buildings in a highly sought-after location with very low vacancy rates, as well as owner-occupiers seeking room for future expansion.
“The wide range of options and the overall quality of the asset make this a truly top-tier investment. This really is as good as it gets when it comes to industrial property.”
Chand says North Harbour’s industrial vacancy rate has dipped to a new low of 1.4 per cent as of February 2019 – down from 1.9 per cent a year earlier.
New builds have been snapped up by national and international brand occupiers, including Sky TV, EBOS, EasiYo, Gurit, Inmarsat, ICT and CDB Goldair, among others.
“All of this makes the property for sale at 8 John Glenn Ave a strategic buy for occupiers, investors and developers.”
The property is centrally located on John Glenn Ave, a cul-de-sac off the main North Harbour arterial route of William Pickering Drive.
Convenient access to Auckland’s motorway network is available via Upper Harbour Drive or Tawa Drive to the south.
Prentice says the property was built by the highly regarded KEA Property Group, which has been among the most prominent industrial developers on the North Shore since 1980.
“This premium industrial facility was designed by MJ Darby, an established architectural practice responsible for many contemporary buildings within the North Harbour region.
“The structure is of a superior quality, with a 10m to 11m stud warehouse, a substantial canopy and two well-appointed office levels.
“The site is well configured with a hard stand yard area, 20 off-street car parks and a good area of future development land.”
Prentice says the 1,268.5sq m warehouse is accessed via three roller doors under a 281sq m canopy.
The north-facing office and amenity area provides 216.7sq m of space finished to a high standard.
The undeveloped land to the west of the building is currently presented as a well-kept lawn area. This land would be suitable for a building expansion of up to about 1,100sq m.
Prentice says there is scope for a future extension to be tenanted on a separate lease, providing an additional income stream.
Short-term tenant TreasureBox is an online retailer that sells a range of goods via its own website and Trade Me.
Established five years’ ago, the company now has more than 30 employees and operates three dispatch centres with a combined warehouse space of 3,500sq m.
Contract rental of $270,000 net per annum provides a significant add value opportunity in a very tightly held market.
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