Colliers' latest research finds the investment characteristics of industrial property's golden run were evident again during the past year and the trend is set to continue given the backdrop of tight supply and sustained demand across Auckland.
With that in mind, prospective purchasers are encouraged to consider 483B Rosebank Road, Avondale, an evenly proportioned, two-level warehouse and office property that provides 734sq m of total net lettable area in the popular industrial precinct of Rosebank.
The property, which is zoned Business – Light Industry Zone under the Auckland Unitary Plan, offers buyers the chance to secure a top-tier, split-risk investment with an opportunity to generate further income.
The warehouse space is leased, leaving the upstairs office tenancy available to market. The property provides 16 car parks, which are currently leased or allocated. Market estimates suggest when the property is fully tenanted it will return approximately $154,279 plus GST in net annual rental income.
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The property is situated within the award-winning Harbourside Business Park, which was completed in 2004. The Rosebank Peninsula is the closest industrial precinct to Auckland CBD, the port, and the surrounding motorway network, which has proven attractive to the businesses located there.
Colliers Brokers Benson Tarm and Amir Bashota have been exclusively appointed to market the property for sale via auction to be held at Colliers West Auckland at 11am on Wednesday 27 April.
KONE Elevators Pty Ltd leases a total of 427sq m, which includes the 367sq m ground floor warehouse and 60sq m of the upstairs office. They also have access to two car parks. Their lease, which is in its final term, provides $70,644 plus GST in net annual rental income and has a market rent review scheduled for November.
Vircom Energy Management Services leases 10 car parks, returning $10,400 plus GST in net annual rental income on a three-monthly ongoing basis. Warmup New Zealand leases four car parks on a six-monthly ongoing basis and their agreement provides $4,160 plus GST in net annual rental income.
The first floor office space, which is air-conditioned, spans 367sq m and is currently part vacant, providing a range of options for prospective purchasers.
Tarm, Investment Sales Broker at Colliers, says this well-constructed property shapes as a highly desirable purchasing opportunity.
“Properties on Rosebank Road always draw significant interest among buyers given it is such a sought-after location for industrial occupiers,” Tarm says.
“Colliers’ latest research indicates prime industrial vacancy rates across Auckland are sitting at less than 1 per cent, while office vacancy rates remain around long-term averages, making this property particularly intriguing given it has vacant office space that is sure to be incredibly popular among prospective tenants.
“The industrial sector continues to thrive as an asset class and Colliers’ research also notes industrial rental growth resumed in 2021 as market conditions continued to tighten and inflationary pressures began to build.
“The subject property provides a steady rental stream from the existing, established tenants but also offers flexibility for the future owner who may wish to secure a new tenant or occupy the premises themselves.”
Bashota, Industrial Sales Broker at Colliers, says Rosebank is home to a number of big-brand tenants, including Allegion, Rheem, Blum, and Bunnings who can make the most of the area’s favourable proximity to Auckland CBD.
“The supply of properties for both lease and purchase have not been able to keep up with the increasing investor demand for the area, which has led to the Rosebank precinct to be a highly sought-after and prestigious area where only a handful of properties transact yearly,” Bashota says.
“With the overall uncertainty in other areas of the market, the traditional investors have transitioned their attention to industrial investments, and Colliers’ research indicates average prime industrial yields in Auckland were 3.8 per cent in 2021.
“483B Rosebank Road is an affordable investment that will appeal to a wide range of investors.”
- Article supplied by Colliers
