A highly visible property in the tightly held South Auckland suburb of Ōtāhuhu is being presented to the market for sale and offers prospective purchasers the opportunity to acquire a top-quality asset.
16-20 Tui Street, Ōtāhuhu has 1,886sq m of total building area on a freehold site that measures 3,321sq m, subject to a boundary adjustment. The property is zoned Business – Heavy Industry Zone under the Auckland Unitary Plan.
The building is split into two tenancies, separated by a full height inter-tenancy wall. One of the occupants has a five-year lease that runs until 31 May 2025, while the other will vacate the premises in February 2024.
This means buyers will have the opportunity to potentially occupy part of the property, while receiving supplementary income from the other tenancy. Alternatively, an investor may choose to acquire the property and lease the soon-to-be vacant space.
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Market estimates from Colliers suggest the total annual rental income from the property could be approximately $331,000 when fully tenanted.
As well as enjoying excellent road exposure, the property also benefits from its ease of access to Auckland’s key transport touchpoints, including Wiri Inland Port, Auckland Airport, and Port of Auckland.
Colliers Directors Mitch Broderson and Ben Cockram have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 22 November, unless sold prior.
Originally constructed in the mid-1990s, the warehouse comprises tilt slab concrete panels and long run metal cladding, supported by structural steel framework.
Both tenancies benefit from a generic layout with strong warehouse to office ratios. They also have the additional functionality of both front and rear full height roller door access. The property has two access points and 60m of road frontage.
All Truck Fix, who have two three-year rights of renewal available on top of their current lease that runs until 2025, occupies a 989sq m tenancy that includes a 627sq m high stud warehouse. There is also ground floor and mezzanine office space and further workroom space.
Their current lease provides $160,000 plus GST in net annual rental income and there are market reviews set for every two years from 1 June 2023.
The premises that will be vacant early next year, which is currently tenanted by LicenSys, spans 897sq m with 672sq m of warehouse space, offering supreme functionality for the requirements of any future occupant.
There is further available yard space at the rear of the site as part of a long-term lease agreement with the neighbouring property.
Broderson, Director of Industrial at Colliers, says industrial floorspace remains keenly sought in Auckland due to a lack of supply.
“Research from Colliers notes the overall vacancy rate for industrial floorspace is only 1.7 per cent and prime industrial space in the subject locality is only 0.2 per cent, indicating the dearth of available space,” Broderson says.
“This property provides occupiers with the opportunity to secure their own premises and enjoy a steady rental stream from an established tenant in the neighbouring tenancy.
“There is also scope for an add-value investor to acquire the property, enhance the tenancy that will soon be vacant, and then lease it.”
Cockram, Director of Industrial at Colliers, says this location remains sought-after among industrial occupiers with well-known brands such as Mainfreight, Toll, and Supercheap Auto in the surrounding area.
“It is less than 15km to Auckland CBD, while State Highway 1 is 4.1km away, promoting accessibility to all corners of the city,” Cockram says.
“State Highway 20 is only 3.3km away and Auckland Airport can be reached in approximately 20 minutes.”
The Business – Heavy Industry Zone provides for industrial activities that may produce objectionable odour, dust, and noise emissions. A key attribute of the zone is that it contains sites large enough to accommodate large-scale industrial activities.
- Article supplied by Colliers
