In an incredibly tight Auckland industrial property market, two exceptional, brand-new facilities are emerging for lease in the high-demand South Auckland industrial precinct of Wiri, at 69 McLaughlins Road.
The two properties, which are currently under construction at the gateway to a substantial 28.5 hectare parcel of industrial land owned by 100 Prices Rd Limited, are being marketed by joint sole agents Paul Steele and Claus Brewer of CBRE alongside Henry Mann and Tom Cooper of Savills.
Available for lease from March 2024, they feature in the latest issue of CBRE’s Inspect industrial and logistics occupier magazine, which is published this week.
Claus Brewer, National Director of CBRE’s Industrial & Logistics Advisory & Transaction Services business, says that the two new properties will be desired by a wide range of tenants looking for tenure security as industrial vacancy in Auckland across all grades continues to sit sub-1%.
Start your property search
“They are in rare company, as there is virtually no property of this type, size options, and calibre available in this precinct, which is one of Auckland’s most sought-after industrial suburbs. If you want something above 6,000sq m today, it is not available for the balance of 2023. The 8,100sq m warehouse is one of only a handful of footprints available for lease in 2024.”
Brewer says that 100 Prices Road Limited is a reputable investor, developer and occupier that is building a growing track record in the industrial and logistics property space. “Having created many facilities for themselves and the market, they have a strong understanding of the needs of logistics occupiers, in large part because they are a logistics occupier themselves.
"They are a pragmatic landlord and they have the capability to deliver and perform. This takes a lot of risk out of the development.
“They bought the 28 hectare block in April 2021 from Reading International. Since then they have worked to develop and now spec build the two buildings at 69 McLaughlins Road.
"These comprise a 1,500sq m and 8,100sq m facility which now form the gateway to not only the estate but also the wider industrial precinct and roading network between McLaughlins Road, Prices Road and Puhinui Road. For CBRE this is the continuation of our work to integrate solutions for our clients. We helped to sell the full 28.5ha site when owned by Reading, and now we’re working with the current land owners to lease the new spec built properties on the property: this is how CBRE operates.”
Building 1 is a large scale, A-Grade facility currently under construction on a high profile corner site at the intersection of McLaughlins Road and newly constructed Prices Rd extension, offering dual access and drive through capabilities. The facility is being built to the highest specifications and will comprise 8,100sq m of high stud warehouse (minimum clearance of 11.5 metres, rising to 14.1 metres at the ridge), 619sq m of office/amenities and 2410sq m of all-weather canopies.
Working towards a completion date of May 2024, the facility will offer Gross Lettable Area of 8,719sq on Heavy Industry-zoned land. With proposed pallet space capacity of up to 12,490 on a 40 KPA Floor Loading, the facility also offers dual access with drive around capability and excellent working canopies, plus 67 car parks.
Building 2 offers 1,652sq m of Gross Lettable Area, comprising a 1,452sq m high stud warehouse (minimum clearance of 10 metres rising to 11.1 metres), 200sq m of office/amenities and a 660sq m extra-wide (12m) breezeway.
With proposed pallet space capacity of 1,840 also has dual access with drive around capability, complimented by 18 car parks, this A-Grade facility has an estimated completion date of March 2024.
Both properties are positioned on a corner site, offering dual access and drive through capabilities, says Paul Steele, CBRE NZ’s Director, Industrial & Logistics, Wiri/South. “Each of the facilities at 69 McLaughlins Road provide an incoming occupier with a stellar opportunity to secure an excellent industrial and logistics location.
“We envisage that Building 2 could contain a showroom component, as its 10-metre stud height lends itself to an occupier looking for profile on a slightly smaller site footprint. No other properties can compete with this smaller footprint; it is unique. The larger footprint offered by Building 1 lends itself to a logistics provider. The 11.5m stud at the knee is a great solution for faster-moving product in particular, and the very large canopies that are being created will enable all-weather loading.
“Both properties have drive-through capabilities, which ensures that the site is exceptionally efficient. Furthermore, the corner site acts as the gateway to the estate, and provides easy access to State Highways 1, 20 & 20B, as well as Wiri Inland Port and the airport.
"One of the many benefits of this site is that it will enable the occupier to have easy movement from McLaughlins to Vogler and Cavendish Drive’s, and then onto the motorway network.
“Wiri is the fastest growing industrial zone in Auckland, due to its access to state highways, the inland port network and airport. This area provides manufacturing, logistics and warehousing companies unbridled distribution access in every direction, particularly as it is only a mere 24 kilometres to Auckland’s CBD and Port of Auckland.
“Both of these properties will also offer great amenities for the people who work here. Close to where the Puhinui Creek rolls through, the owners have always wanted integration between the natural and built environments.
"They are aiming for this estate to be great for employees, a leading-edge environment that provides a unique experience you won’t ordinarily get in an industrial setting.”
The properties are being made available for lease at a time of ongoing unprecedented demand for industrial facilities, and particularly in Wiri. CBRE’s current Auckland industrial market trends research shows that after gross supply of just under 100,000sq m in the first six months of last year, the market rocketed ahead in the second half of 2022, with completed new supply amounting to 236,000sqm between July and December.
Brewer says that when allowing for building withdrawals, the total net stock change in the second half of last year was over 195,000sqm, the largest recorded amount in the past ten years.
“There were seven large-scale developments (10,000sqm+) completed in H2 2022, including a 33,000sqm facility for NZ Post and a 30,000sqm warehouse for Repco, both in Wiri.”
Demand is keeping pace, he says. “Total industrial net absorption was just under 223,000sqm in the six months to December 2022, with about 240,000sqm net absorption growth recorded in Prime quality, and about a 17,000sqm loss in Secondary. While the completion of new developments was a major contributor to the strong net absorption gain, all Prime quality vacancies in the existing stock have also been absorbed.
"This means that the total industrial vacancy rate moved from 0.5% in December 2021 to a scarcely believable 0.1% at the end of 2022.”
Despite CBRE forecasts showing Prime vacancy to show modest increases during the next two years in line with the level of economic growth, Brewer says that forecasts show average Prime vacancy rates in the next five years sitting at 1.1%, still materially lower than the historical average level of 1.6%.
“Our research does not deliver new news by continuing to talk about a tight market. However, while a tight market isn’t new, it does reinforce the need to act quickly when quality stock does come to market.
"Rental trends continue to reflect the momentum built up due to the strong supply-demand fundamentals that became increasingly entrenched over the past 12 months.
"This means that these two new spec built properties at 69 McLaughlins Road are standing tall in a market where there is not much stock around. They are special assets, and they will command special users.”
- Article supplied by CBRE
