An extremely rare multi-unit property in the heart of Onehunga’s sought-after industrial precinct in Auckland is being presented to the market for sale and offers buyers the opportunity to acquire a diversified and functional split-risk investment with future upside.
Units 1-5, 319 Neilson Street, Onehunga has 2,272sq m of total net lettable area across five individual titles on 3,525sq m of land that is prominently positioned on the main arterial road in the wider Penrose and Onehunga precinct.
The property is home to multiple tenants with varying remaining lease terms and the total net annual rental income is $316,000 plus GST but market estimates suggest there is plenty of rental upside in the future.
The respective units vary in size from 336sq m to 597sq m and all include predominantly warehouse space with associated office and amenities.
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Neilson Street is a key route in Onehunga that runs parallel to Church Street and offers excellent connectivity to the nearby motorway network.
Onehunga’s popularity as an industrial location can be attributed to its ease of access to vital transport infrastructure such as State Highway 1 and 20, the rail network, and Auckland Airport, alongside its proximity to other prominent industrial hubs and large labour catchments.
Colliers Directors Ben Cockram and Matt Prentice have been exclusively appointed to market the property for sale by deadline private treaty closing at 4pm on Wednesday 19 July, unless sold prior.
Originally constructed in the mid-1980s, the roof of the whole complex was replaced in 2018, while the external cladding was replaced two years later.
The highly visible property benefits from 37m of road frontage to Neilson Street, while there are two vehicle crossings providing convenience for occupants and visitors to the site.
Cockram, Director of Industrial at Colliers, says purchasing opportunities such as this one are rarely available given the tightly held nature of industrial property in Onehunga.
“One of the most appealing aspects of this property is the flexibility that is on offer given it includes five individual titles meaning these units could be repositioned and divested separately in the future,” Cockram says.
“Such a repositioning of the property could unlock the true value of it and maximise the potential available given it sits in such a prominent position in one of Onehunga’s most desirable industrial locations.”
Research from Colliers notes the overall vacancy rate for industrial property across Auckland is historically low at only 1.7 per cent with prime vacancy rates in the Penrose and Onehunga hub sitting at only 0.5 per cent, indicating the scarcity of available space.
Onehunga has long been considered Auckland’s preeminent industrial location due to its central position within the city’s wider context and ease of access from all corners of Auckland.
Prentice, Director of Industrial Sales and Leasing at Colliers, says properties with Heavy Industry zoning such as this one are highly sought-after among buyers.
“With some of the lease agreements ending in 2027, the owner will have time to strategically plan their future moves for the site, while enjoying the split-risk income from a diversified tenant mix,” Prentice says.
“This income stream also has potential to grow to sit more in line with current market rates with future lease renewals on the horizon. Industrial rental rates in Onehunga have grown considerably during the past two years due to the low vacancy environment and lack of supply in the market.
“Government data also notes the Onehunga and Penrose catchment contributes 8 per cent of Auckland’s GDP, which is measured at approximately $4.6 billion per annum.”
- Article supplied by Colliers
