A significant industrial facility in Hamilton’s well-connected and rapidly evolving Te Rapa industrial precinct offers a well-timed opportunity to leverage current real estate trends, Bayleys salespeople say.
Three interconnected warehouses on 5,604 sqm (more or less) of freehold land at 66 Norris Avenue are in a prime location, poised to benefit from low vacancy rates and high demand for large-scale industrial offerings.
Bayleys Hamilton salesperson Luke ten Hove says that with the development pipeline sluggish following a period of economic uncertainty, capital is again circulating for add-value investments, which offer significant potential for long-term returns and strategic growth opportunities.
“Persistent shortages of industrial land for development have led to substantial growth in property pricing over the past decade. At the same time, low vacancy in well-connected areas will likely mean average rental rates continue to rise moderately.
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“With the lease to the current occupier – precision automation engineer RML – expiring in December, the subject property presents a virtual blank canvas opportunity for a new owner, with upside potential from the completion of refurbishment and add-value works.
“The property offers the flexibility to lease to a single tenant or subdivide into multiple tenancies, providing diverse use options. This allows a new owner to occupy part of the property while implementing development plans.
“There has also been a recent rise in sublease opportunities as rental growth and operational costs motivate occupiers to right-size footprints and realign their real estate needs – providing another dynamic for a new purchaser who might install one or multiple tenants.”
Ten Hove is marketing the property for sale by deadline with Bayleys colleague Alex ten Hove, closing at 4:00 pm on Thursday, 22nd August 2024 (unless sold prior).
The Norris Avenue facility has a total floorplate of 2,804 sqm (more or less) made up predominantly of warehousing supported by a large 1,500 sqm (more or less) yard, including extensive carparking and storage.
Alex ten Hove says the interior floorplan provides interconnected workshops, offices and mezzanine office space with staff amenities.
“Over the past five years, there has been a marked change in office-to-warehouse ratio demand in the industrial sector, as occupiers ramp up their warehousing demands to optimise operational efficiencies and accommodate expanding inventory and logistics needs.
“The subject property features roughly five times more warehouse space than office accommodation, aligning well with the broader industry emphasis on warehouse cubic capacity.
“With a well-proportioned and substantial site in a highly convenient area, supported by excellent connectivity via the Waikato Expressway, the property is expected to attract attention from operators searching for expansion opportunities.
“Te Rapa has an established industrial presence attracting various logistics and distribution businesses which have identified the growth location as an efficient hub for supply chain operations servicing both local and regional markets.
“At the same time, the versatile premises provide a rare opportunity for developers and investors to capitalise on current real estate trends, whether through strategic refurbishment or multi-tenancy options – making it an ideal investment for those eyeing long-term growth potential.”
- Supplied by Bayleys
