A vacant property in the prime Penrose industrial area has been placed on the market through Savills, at a time when demand from investors, developers and tenants for industrial property is at unprecedented highs.
316 Neilson Street, Auckland, is being marketed by Savills New Zealand Associate Director of Industrial, Damon Wyllie, and General Manager of Capital Transactions, William Wallace, by deadline private treaty closing at 4pm on March 4 2021.
The 5,607sq m freehold site, which is on the market for the first time in 37 years, includes two 1980s buildings and a large yard area. Its excellent position on busy Neilson Street in the centrally-located, highly sought-after Penrose-Onehunga industrial area means it is expected to be in demand among a variety of potential buyers, says Wyllie.
“This site provides multiple options for several different buyer types. It is an ideal candidate for redevelopment, being of sufficient size to accommodate a modern, purpose-built industrial facility. There is certainly value in the existing buildings, however with the current severe shortage of industrial land for development, this is an excellent opportunity for a purchaser to construct a new facility.”
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The property is also likely to suit investors looking to acquire assets in a sector that is going from strength to strength; as well as owner occupiers seeking a highly functional property in a top location where purchasing opportunities are scarce, Wallace says.
“Industrial sites in the Penrose-Onehunga precinct are now extremely hard to come by, with the weight of current high demand compounded by a lack of development land throughout Auckland,” he says.
“For investors looking to buy and lease, or owner occupiers wanting to move to the area, this property is essentially ready to operate from with functional existing buildings and a large yard. It’s the type of property that is definitely in demand among a large number of tenants at the moment.”
The site, which is in a rear position off busy Neilson Street, is accessed via a wide shared driveway. The two existing buildings on site make up around 1,885sq m in floor area, including canopies.
The main building features multiple roller doors on both sides providing drive-through capability. It provides 647sq m of warehouse space with a stud height of 8.9m at the apex, as well as offices and amenities.
The smaller building on the western side of the site is around 595sq m in size. The buildings have an A grade seismic rating, meeting 100% of new building standard.
The surplus yard space, which is concreted, could be used for various purposes as-is, or alternatively it could be used to extend the current building footprint.
A further benefit of the site is its heavy industrial zoning, which is a highly accommodative
A further benefit of the site is its heavy industrial zoning, which is a highly accommodative zone permitting a wide range of potential uses, says Wyllie.
“The site’s heavy industrial zoning only adds to its appeal in the buyer market, along with its excellent connectivity to both motorway systems. This location is roughly mid-way between the
Southern and South Western Motorways, providing convenient connections with metropolitan and regional destinations as well as the Auckland central business district.”
Metroport, the Port of Tauranga’s intermodal cargo gateway, is located across the road and Auckland Airport is only 12.5km away, Wallace says.
“The surrounding industrial precinct is home to a vast number of established businesses which favour the area because of its good transport links to the CBD, metropolitan Auckland and the airport. For this reason, Penrose and Onehunga is an extremely low-vacancy, high-demand area which has consistently proven to be a top performer for property owners.”
