Units within a proposed new industrial complex in Te Rapa North, Hamilton, are quickly selling-down off the plans.
Priced from $299,000 to $549,000 + GST (if any) and ranging in size from from 79sqm to 136sqm, several of the 23 industrial stratum-in-freehold units planned in Earthmover Crescent are already under contract.
Of note is the interest coming from owner-occupiers keen to get on the property ladder at an accessible price.
Earthmover Limited Partnership along with development manager for the project, Veros Property Services, are bringing the development to life. The Veros team has recently completed Portside Industrial in Mount Maunganui.
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Marketing agents Rebecca Bruce and Jordan Metcalfe of Bayleys Hamilton say there is a huge appetite for quality industrial units in the Waikato and recent experience has shown that this kind of investment is just what the market wants.
“Purpose-built, well-planned units in astute locations and at an entry-level fixed price are resonating with owner-occupiers and investors with the upfront pricing streamlining the process of securing finance with banks and lenders,” Bruce explains.
“When you couple historically-low interest rates with rising rents, buying a property is often more cost-effective for small business owners and potential buyers can go to the bank with a clear-cut investment proposal.
“It gives business owners more control over their future as they have a secure base without the threat of an expiring lease and at the competitive price point on offer here, it’s proving to be an effective business strategy.”
Having sold similar properties off the plans in another part of Te Rapa, Bruce says these units are also an options for those who may have previously have considered investing in the residential property market.
“Many former or potential residential investors have concluded that the compliance thresholds and other facets of the residential sector have taken the shine off that investment environment from a returns perspective,” she says.
“These buyers are increasingly turning to industrial property given the proven returns, the low vacancy rates being experienced, the general resilience of the sector and the less-certain fundamentals in the residential investment market.
“Plus with commercial/industrial tenants typically responsible for all property outgoings, the bottom line starts to look even more attractive for hands-off investors.”
A 10 percent deposit is required by buyers and once the developer’s threshold has been met, construction will get underway with completion of the Earthmover Crescent project expected by mid-2021.
“This allows a decent lead-in time for owner-occupiers to exit their existing premises and get their relocation ducks in a row, and gives investors time to source a suitable tenant,” says Metcalfe.
Metcalfe predicts that the inherently low-maintenance, flexible design and functionality of these units will appeal to a wide range of business uses and industries.
“Landlords will be able to tap into a broad base of potential tenants and will find that resale in the future will be easier as the development is not pigeon-holed for any one particular industry use,” says Metcalfe.
The units are expected to be popular with tradespeople, as off-site facilities for online or physical businesses needing storage for stock inventory, and even as “an extra garage” for those with recreational vehicles such as boats, jet skis and classic cars.
Bruce says the units with road frontage could also present opportunities for showroom space which casts the net even wider in the tenant or owner-occupier market.
“This site has streamlined access to the motorway interchange, to The Base commercial centre and to nearby residential catchments including Pukete and Rotokauri.
“Along with the visionary infrastructural developments that are happening in the region such as the Ports of Auckland inland port, and the proposed Hamilton to Auckland commuter rail connection, the site is effectively future-proofed for growth and demand.”
