With Auckland’s overall industrial vacancy hovering around 1 per cent and limited supply of new warehousing stock coming to the market, an Onehunga multi-tenanted investment property is attracting solid enquiry from a wide range of prospective buyers.
The property at 30-32 Hill Street, Onehunga comprises five functional office/warehouse tenancies with a total floor area of 928sqm on 1,503sqm Mixed-Use zoned land and billed as an affordable industrial investment with scope to increase rental.
Tenants include a not-for-profit organisation, a specialist grocery wholesaler, a tyre firm and a freight logistics provider, with one vacant tenancy.
Tenancy one comprises a two-level office property and tenancy two is an industrial warehouse with offices and amenities.
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Currently vacant, tenancy three is a commercial office space across two levels, providing immediate rental upside or owner-occupier capacity.
Tenancy four is the largest of the five and comprises a functional industrial unit with high-stud warehousing, showroom, office and amenities, while the fifth space is commercial office or light warehousing with good natural light, a large deck and ample secure yard/carparking to the north of the site.
Current net annual income is $178,549.52 plus GST with occupiers on varying lease terms.
The property is being marketed by tender closing Thursday 14th December, unless sold prior, through James Valintine, James Were and Phil Haydock of Bayleys.
The Onehunga industrial area is one of the most intensively-developed industrial localities within Auckland and Were says demand for space remains robust with both national and international occupiers opting to base themselves in the area for operational efficiencies.
“This functional and adaptable property is centrally-located between State Highway 20 and Onehunga Mall with direct access to State Highway 20 and State Highway 1 via Neilson and Church Streets making it a strategic location for businesses,” he says.
“Decent-sized properties are hard to come by in central locations such as Hill Street and as some of the existing leases are fairly short, there’s opportunity for an owner-occupier to scope out a staged relocation across the whole site while enjoying the passing income.
“Alternatively, an owner with more modest space requirements could simply occupy the vacant tenancy and clip the income ticket from the balance of the site, firming up leases as they roll over.
“There’s potential rental upside to be realised given that data indicates low vacancies and strong competition for space are continuing to underpin rental growth, so the property would also be ideal for passive or add-value investors keen to secure favourably-zoned space.”
With minimal vacant industrial land in the broader Onehunga-Penrose area, Valintine says add-value investors or developer may acquire the site and ride out the leases for the next few years while strategically working through plans to optimise the 1,500sqm land parcel.
“While the current configuration provides functionality, flexibility and capacity for industrial, or commercial use to split risk, the Mixed-Use zoning provides greater live/work potential or a future redevelopment opportunity,” he says.
“Surrounding buildings are a mix of industrial and commercial space – some recently refurbished – along with high-density residential conversions or new-builds.
“Developments like Ockham Residential’s Manaaki apartment complex, Auckland’s largest first home buyer apartment block, and billed as the largest apartment complex to have ever been built outside the CBD, are seeing Onehunga’s property star rise and there’s certainly opportunity to be unlocked with the subject property.”
Onehunga’s already efficient transport networks have been further enhanced by the Waterview Tunnel, which has increased demand for industrial space in the area and seen occupiers expand from those traditionally serving the residential catchment to big players in the market keen to leverage the locational benefits.
The Hill Street property is around 20 minutes’ drive from the Auckland, close to Dress Smart Outlet Shopping Centre, Royal Oak Shopping Mall, Sylvia Park Shopping Centre and Mt Smart Stadium.
Article supplied by Bayleys
