Multiple tenants at prominent East Tāmaki location

A highly visible multi-tenanted property in the established industrial hub of East Tāmaki in Auckland will appeal to buyers looking for a premier split-risk investment opportunity with future upside and development potential.

107 Harris Road offers 3,034sq m of total net lettable area on an 8,093sq m site that is zoned Business – Heavy Industry Zone under the Auckland Unitary Plan.

The property comprises trade retail, medium stud warehouse accommodation with offices, and significant yard space. It is home to eight different tenants with a weighted average lease term of 4.35 years by income as at 1 April 2023. The total net annual rental income from the property is $712,763 plus GST.

Harris Road is a major arterial route in East Tāmaki and the subject property has high levels of visibility to an average of 20,000 vehicles that pass the site daily.

East Tāmaki is a highly desirable industrial location given its proximity to the Southern Motorway and other key industrial hubs such as Highbrook, Manukau, and Mount Wellington.

The development of the Highbrook Business Park and Eastfield Industrial Park underscore the area’s status as one of the best industrial locations in Auckland.

Colliers Directors Edward Washer, Paul Higgins, and Greg Goldfinch have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 3 May, unless sold prior.

The tenants are a varied mix of businesses, including NZ Safety Blackwoods, the country’s leading supplier of safety equipment, engineering supplies, uniforms, and packaging who are owned by ASX-listed company Wesfarmers.

Other occupants include Ideal Electrical as well as an additional trade retailer and one food retail operator, plus four other tenants who lease the balance of the yard and building at the rear of the property.

Some of the rental agreements at the rear of the property are due to expire this year providing upside, while others end between 2027 and 2033 and there are various rental increases in place across a spread of the existing leases.

Washer, Director of Industrial at Colliers, says the property makes for an appealing split-risk investment opportunity with a strong tenant covenant.

“There’s a complementary tenancy mix at the property with some established tenants in place that include well-known brands that are backed by international owners,” Washer says.

“With some of the tenancy agreements expiring in the near future, there is an opportunity for the new owner to secure new occupants and potentially grow the existing rental stream or develop.

“The property may appeal to an owner-occupier that could base their business in one or multiple warehouses at the rear of the site and benefit from the leased tenancies at the front.”

Higgins, Director of Industrial at Colliers, says East Tāmaki is a sought-after location among industrial occupiers that remains tightly held.

“Research from Colliers notes that industrial vacancy rates across Auckland remain low at 1.8 per cent, while the prime industrial rate in East Tāmaki is only 0.8 per cent,” Higgins says.

“The area’s connectivity to the motorway network while being only approximately 20 minutes from Auckland Airport makes it a desirable locality.”

Goldfinch, National Director of Industrial at Colliers, says the zoning and low site coverage of the property of only 38 per cent means there is outstanding future development potential.

“The Business – Heavy Industry Zone provides for industrial activities that may produce objectionable odour, dust and noise emissions,” Goldfinch says.

“A key attribute of the zone is that it contains sites large enough to accommodate large-scale industrial activities.

“Given the scope of what sites with that zoning can be used for there is a wide range of options that will appeal to buyers with a long-term view of the property.”

- Article supplied by Colliers