The redevelopment and use-intensification of industrial land in Hamilton continues to gather momentum – with units in an upcoming 19-site industrial park being placed on the market for sale.
The new wedge-shaped development sits on the high-profile intersection of Ellis Street and Peregrine Place in Frankton – with entry and exit off Ellis Street through a one-way internal routing. Eleven units will run around the edge of the property, with eight premises in the centre.
The single-storey freehold units range in size and price from $315,000 plus GST for a 90-square metre space, up to $636,000 plus GST for a 212 square metre premises.
The 19 units within the 232 Ellis Street compound are now being marketed for sale by Bayleys Hamilton. Salespeople Rebecca Bruce and Jordan Metcalfe said construction of the new industrial hub was expected to begin in the middle of this year, with completion scheduled for the second quarter of 2021.
Start your property search
“This timeframe allows for owner/occupiers to plan their relocation calendar accordingly, and also gives investors a long lead in time to secure a tenant,” Ms Bruce said.
“The development trend for industrial land around Hamilton over the past decade has definitely been for smaller and more efficient land-use and warehousing units. Most small businesses no longer require a large yard space for staff vehicles for example – when those vehicles are on the road most of the day, and can be taken home by staff at night – thereby removing the need for parking.
“Instead, and this is most pertinent for the trades and services sector, staff with a work vehicle now need a ‘pull-up, load-up’ space where they can be in and out of their depot or base within 20–30 minutes. That’s the format on offer at 232 Ellis Street.”
The terraced industrial units within the Ellis Street complex are being constructed of concrete tilt-slab walls on concrete foundations and flowing, with Colorsteel metal roofing and guttering. Each unit will have a motorised roller door, kitchenette, and bathroom facilities adjoining the workshop floorspace. All units will be connected with three-phase power. Car parking will be allocated to the units depending on size.
The Ellis Street new-build block comes onto the market less than a year after Ms Bruce and Mr Metcalfe were involved in the total sell-down of a comparable 19-site industrial park development in the Te Rapa precinct on Hamilton’s northern boundary.
By comparison, units at the Te Rapa boutique industrial hub in Bristol Place ranged in size from 50 square metres to 150 square metres.
Like the Ellis Street block, the freehold unit-titled work-spaces in Bristol Place were marketed for sale ‘off plan’ in a ‘first come/first served’ basis. Ms Bruce said the Bristol Place buyer dynamic was split 50/50 between owner-occupiers and investors – a scenario she fully expected to be replicated at the new Ellis Street destination.
“We are certainly expecting this new Frankton offering to appeal to buyers who missed out on units in Bristol Place, or who were not in a position to purchase 10 months ago. The location, being city centre-fringe, will also bring in businesses whose activities are reliant on the convenience of being close to the centre of town or to Hamilton’s southern and western suburbs,” she said.
“The variation in unit sizes at 232 Ellis Street ensures the complex offers a floorplate option to meet the needs of most potential tenants. For businesses wanting bigger space, there is also the opportunity to purchase adjoining units and open up a connecting internal space during the design and construction phase of the project.”
Mr Metcalfe said neighbouring premises around 232 Ellis Street include plumbing, electrical, light engineering and metalworking firms – many in older buildings which were in need of either refurbishment and modernisation, or demolition and redevelopment into more efficient workspaces.
“We fully anticipate buyer interest in the Ellis Street units from industrial tenants in the immediate vicinity looking for more cost-effective premises designed and built to reflect their operations,” he said.
“In many instances now, a purpose-built new premises can actually delivery a cheaper per square metre leasing rate than an older location which brings with it swathes of unused or underutilised yard and warehouse space.”
Mr Metcalfe said the relatively low pricing levels for the smaller units within the 232 Ellis Street location could also be appealing to residential property investors looking to diversify their portfolio into the city’s commercial sector where yields of five to six percent could be secured.
