With industrial property remaining in tight supply across Hamilton, and with a lag in the pipeline of new property coming to the market given the cost of construction, a new 17-unit development in the popular Riverlea precinct on Hamilton's southern boundary is filling up.
Undertaken by experienced private developers, ten of the freehold unit-titled warehouse-style units in The Sheds development have sold to local owner-occupiers and investors – including two of the largest units.
The remaining seven units, which range in size from 90sqm to 116sqm, are being marketed for sale through Rebecca Bruce and Jordan Metcalfe of Bayleys Hamilton, priced from $425,000 plus GST (if any).
The site at 142 Riverlea Road was formerly home to a food processing operation and was cleared to develop the stylish and secure industrial complex.
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It comprises two outward-facing blocks with the high-stud warehouses having tilt slab construction, full-height glazing and 3.6m wide motorised roller door frontages, kitchenettes and bathroom amenities.
There is ample on-site carparking, along with drive-around capability and dual road access for efficiencies.
Bruce says the units should be completed in the coming month and while the vendor would consider leasing some of the units, the preference is to sell them and market demand supports this.
“Owner-occupiers are still active in the market and seem more determined than ever to purchase a property for their business to operate from.
"We are seeing banks looking positively towards owner-occupier purchasers too, which is great.
“Many of them have found the tenant market frustrating and wish to take more control of their premises so these purpose-built units meet that need.”
The units are expected to resonate with tradespeople looking for a conveniently-located base, businesses who hold stock inventory including online retailers, and people looking for personal storage for recreational vehicles such as cars, boats, caravans, motorhomes, or jet skis.
There is also demand from investors looking to diversify their property investments into Hamilton's strong industrial sector.
With latest StatsNZ data showing that Hamilton has overtaken Tauranga as the country’s fastest growing city and with the economic golden triangle of Auckland, Hamilton and Tauranga remaining at the heart of business locational decisions, Bruce says she expects the balance of the units within The Sheds development to sell quickly.
“As the project is almost complete and occupiers will soon start to move in, others are seeing that the opportunity is viable, logical and desirable.
“Buying off the plans is one thing, but actually being able to view the units and get a true appreciation of how the location and complex would work for a business is underpinning the current inquiry we’re receiving.
“The development pipeline of new stock elsewhere in Hamilton has largely stalled while economic and supply chain fundamentals fall back into line and this has created a massive gap in momentum.
“It could be 18 months or so before the new-build market kicks back in again.”
Riverlea is a tightly-held and strategically-located industrial precinct accessed off State Highway 1 with easy access to Hamilton city and Cambridge as well as the wider golden triangle.
It is also close to the high socio-economic areas of Tamahere and Matangi and the sought-after residential suburbs of Hillcrest and Hamilton East.
- Supplied by Bayleys
