The rapid sell-down of a new-look multi-unit complex in Silverdale shows emerging demand for “micro industrial” premises as a new breed of buyers and occupiers turn their hand to commercial property.
Located in a well-established North Auckland industrial precinct, the Industry Silverdale development offers something different. Its 74 brand-new industrial units range in size from a mere 42 square metres to 125 square metres.
Constructed by leading commercial builder Haydn & Rollett, the complex on Peters Way, Silverdale, was designed to high-quality standards with maximum flexibility in mind.
Its secure freehold units boast large roller doors, three-phase power and a generous six-metre average stud height, along with mezzanine storage and office options. Each unit comes with one to two car parks and the entire development is protected with CCTV security.
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The site’s Light Industry zoning under Auckland’s unitary plan supports a broad range of uses including workshops, warehouses, distribution and storage.
Bayleys North Shore Commercial began selling down the development in late 2020.
Priced from $269,000 plus GST (if any), all 74 units sold initially, with all of the properties settling in July 2022.
To date 22 units have since been on-sold to local owner-occupiers, with interest ongoing in a small number currently for sale or lease.
The majority of investors are now enjoying a return of 5-6.5% on their initial investment.
Richard Moors of Bayleys North Shore Commercial said the size and flexibility of the new premises made them accessible to smaller owner-occupiers and investors at an affordable price point.
“The units are on a scale that presents a lower barrier to entry on price. It opens up commercial and industrial property ownership to new buyers, including former residential property investors, who may not have previously considered it an option,” Moors said.
Industrial property generally has outperformed as an investment class through the Covid era, with a rush to e-commerce driving a burgeoning demand for all sizes of warehousing, further heightened by businesses stockpiling inventory to mitigate supply chain disruptions.
“As a result, we’ve seen a growing number of people opening their eyes to new possibilities to own industrial property or simply find their business its next home,” said Moors.
“The various unit sizes and configurations available at Industry Silverdale ensure there’s something to appeal to a wide range of users. Buyers represent a really good mix of both owner-occupiers and investors.”
Moors said the Silverdale complex had attracted strong interest from small to medium business owners.
“For some, it was the chance to secure a new space from which to grow a business they may have started from home, perhaps initially under restrictive Covid conditions.
“But it’s by no means a one-size-fits-all situation. Current business occupiers are engaged in eclectic activities ranging from property maintenance, tradesmen, home interiors and commercial property fit-out, to electronic security systems, print and design, caravan and motorhome modifications and the supply of specialty food ingredients,” said Moors.
Christopher Moore of Bayleys North Shore Commercial said the units had also captured demand from buyers seeking options for their personal use.
“Some are effectively treating them as extended garages, for storing personal toys like boats, cars and campervans. For this type of user, an investment in a unit of this nature can stack up as a pretty interesting alternative to hiring space in a commercial self-storage complex,” said Moore.
The Industry Silverdale development had sparked up impressive interest and tapped into strong underlying demand in the local community, he said.
“The majority of buyers are from Silverdale and the Hibiscus Coast. With very low industrial vacancy, this is proving an ideal location for this type of development.
“A key benefit for owners and occupiers here is the strategic location in one of New Zealand’s fastest-growing locations. Just 2 kilometres from State Highway 1, their new premises also lie around half an hour’s drive from Auckland’s CBD in regular driving conditions,” Moore said.
He expects to see similar developments sprout as more smaller investors wake up to the attractions of industrial property and developers respond to this emerging demand.
“A recent Bayleys research report tips the Hibiscus Coast to become more and more desirable to occupiers, as key roading projects like Ara Tuhono (Puhoi to Warkworth), Penlink (State Highway 1 to Whangaparaoa) and the Matakana Link (State Highway 1 to Matakana Road) are completed, and large master-planned communities bring more people to the area.
“This is certainly true of the traditional larger-scale commercial and industrial occupiers, but demand is also likely to keep swelling among occupiers and investors in search of premises on a ‘micro industrial’ scale,” said Moore.
- Article supplied by Bayleys
