Industrial properties across Auckland’s desirable south-eastern corridor of the city fringe are attracting strong investor interest, particularly from prospective purchasers diversifying portfolios amid the shifting economic climate.
The industrial segment of Mount Wellington continues to pique investor interests with entry-level units and more extensive, strategically located facilities selling in record time, and often to investors shifting the balance of their investment portfolios in favour of industrial property.
James Valintine of Bayleys South Auckland says record-low vacancy rates for industrial property across the country continue to attract investment into the sector, as strong rental returns consistently outperform other asset classes.
He says this coincides with robust demand from owner occupiers increasingly seeking well-located accommodation proximate to transit hubs and logistics centres.
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“Modern development in areas across Auckland’s southern precincts are commanding premium prices. However, existing properties in established industrial locations such as Mount Wellington provide investors with add-value potential from premises ripe for refurbishment or redevelopment.”
One such property, comprising a large-format industrial facility featuring a combination of tenanted and vacant space, is being offered for mortgagee sale through Valintine with colleagues Jordan Brown and William Gubb.
The property at 14-16 Dryden Place is marketed for sale by Bayleys South Auckland, with a deadline closing at 4pm on Thursday, 29th September 2022 (unless sold prior).
The 1,219sqm (more or less) building, built circa 1960, plus 22 car parks, comprises multiple tenancies of predominantly warehouse accommodation.
“There is a mixture of office accommodation with the bulk of the lettable area dedicated to warehousing and workshop space,” says Jordan Brown.
“Several lettable units vary in size, offering an appealing mix for tenants and flexible accommodation for owner-occupiers with an eye to the future.
“The large number of car parks is an increasing rarity in popular locations where there is a mixture of residential, commercial and industrial accommodation, underpinning the property’s attractiveness for occupancy,” Brown says.
The 2,507sqm (more or less) freehold site occupies a position at the southern end of Dryden Place, a cul-de-sac offering privacy for businesses less reliant on street profile, just off main arterial Marua Road.
“The Business – Light Industry zoning under Auckland Council’s Unitary Plan allows for a range of activities including manufacturing, production, logistics, storage, transport and distribution, which presents an opportunity for add-value investors and future owner-occupiers intending to maximise the strategic geographical location and substantial development potential,” says William Gubb.
Gubb notes the favourable light industry zoning permits more intensive development than that already undertaken on the site - a feature that continues to facilitate the transformation of older premises into modern facilities across the region.
“The conversion of nearby Lunn Avenue from predominantly industrial into trade retail, showroom accommodation, and traditional commercial activity contributes to an increasingly healthy local economy across the north-eastern part of Mount Wellington.
“This presents an opportunity for one occupier to redevelop the site as a large-format premises or update the current multi-unit configuration.
“Mount Wellington is one of Auckland’s most sought-after commercial and industrial locations tied to a growing residential catchment including Fletcher’s Stonefields residential development, and simple accessibility from the eastern suburbs Remuera, St Heliers, Pakuranga and Howick.
“As a general lack of industrial accommodation across the region continues to push new development into the city’s outer fringes, the Mount Wellington precinct’s central positioning means sites here are consistently in strong demand.”
Gubb says that with a large site area and a diversified income stream plus flexible options over future tenancies and development, the property on Dryden Place will greatly interest add-value investors, developers and owner-occupiers.
- Article supplied by Bayleys
