Auckland, 16 June 2012 - At a time of rising demand and a shortage of supply of industrial facilities, two new industrial developments at Auckland Airport Business District are available for lease to meet that demand.
The two facilities, which comprise a 3,320sqm office warehouse at the corner of Airpark Drive and the Landing Drive, and the 8,806sqm multi-unit Flex industrial development at Percival Gull Place, are being promoted by Claus Brewer and Scott Soroka of of CBRE’s South Auckland office.
8 Landing Drive
This standalone warehouse on the corner of Airpark Drive and Landing Drive is a 3,320sqm development with strong connections and a thriving location.
Occupying a 6,325sqm site, the clear span warehouse measures 3,000sqm, with 10 metres to the portal knee. A 320sqm office is attached, as is a 464sqm canopy and 1,341sqm yard, plus 30 on-site car parks.
The facility is located immediately south of the Expeditors building on Airpark Drive, continuing the development of the Airport’s Landing precinct.
Brewer says that the facility is suitable for a single industrial user: “With over 3,000sqm of office and warehouse space, this facility has several features that are in high demand from tenants, such as separate car and truck site access, a large yard, warehouse canopies that face away from the prevailing south-westerly winds and office alignment to the operational areas”.
He adds that a further 1,000sqm of warehouse space could be added. “The flexible design means that expansion is a feasible option, with a further ability to increase the office footprint – should the tenant want.
“These attractive attributes, in combination with the favourable airport location, make the 8 Landing Drive warehouse an attractive offering in the market”.
Brewer adds that the development is set to be completed by mid-September. “Works are well underway on site now, and in just a few months this property will be ready for use by one of a wide range of tenants, including freight and logistics, freight forwarding, wholesale trade, import/export, or manufacturing and assembly.”
Flex multi-unit industrial development – Percival Gull Place
The multi-unit Flex development at Percival Gull Place offers highly adaptable options for industrial users requiring smaller quality premises, with the ability to divide the property to suit different needs.
Totaling 8,806sqm, warehouse sizes of 701sqm, 1,188sqm, 1,402sqm, 1,889sqm or 2,804sqm are all possible. The facility also has a 1,520sqm canopy and 57 car parks.
Soroka says that the facility is designed entirely to offer a high level of flexibility, with the option of carving up the warehouse simply by constructing internal speedwalls.
“The design of this incubator type building means that it could suit a range of industrial needs. Speedwalls subdivide for the various units within the development, which creates flexibility for the specific business needs of the tenants. The speedwalls can be really easily put up, and with two way fire resistant properties, are safe and cost-effective. The speedwalls are also 100% reusable, which means they can be reconfigured if the tenants’ space and operation needs change over time”.
Soroka says that design elements of the Flex development include a 6m full drive around access and ample yard areas for devanning containers. The wide canopy offers a covered area for trucks to load and unload into the warehouse space, with full drive-around access providing easy truck access.
“With completion of Flex set for mid-November this year, and with such attractive and flexible options for the configuration of the warehouse space, this multi-unit property is expected to be popular”.
“We see the facility being occupied by multiple users from any one of the following industry sectors: Freight and logistics, freight forwarding, wholesale trade, or manufacturing and assembly..”
South Auckland growth
CBRE’s latest South Auckland industrial market research shows that the majority of the area is generally experiencing decreasing vacancy and rising demand, so there is considerable growth occurring south of the CBD.
Brewer says: “The main industrial precincts of South Auckland - Airport Corridor, East Tamaki, Manukau/Wiri, Mangere and Penrose - are all experiencing good market conditions.
“Our most recent research, which blends office and warehouse net effective rates, has found that Prime industrial rents in the area have been comparatively unaffected by the recent property downturn, and rents are sitting at $106/sqm/annum, which is only 7% below their peak value.”
Soroka says that secondary industrial rent was placed at $67/sqm/annum in December 2011. “Vacancy levels for Prime industrial space is currently 2.5%, with Secondary vacancy sitting slightly higher at 4.0%.”
Airport developing around industrial user needs
Auckland International Airport Property Development Manager, Sean Leonard, says flexible design targeted to the needs of users is at the core of the airport’s development plan.
“A development strategy has been developed as a result of low vacancy for prime industrial space, high occupancy within our portfolio, relatively low levels of construction activity and specific market segments that have either very low levels of vacancy or are poorly serviced. The initiative comprises two developments, this multi-let unit project with “flex” units from 701sqm and a stand-alone office warehouse building targeting tenants in the 3-4000sqm range.”
“At 8 Landing Drive, we are bringing a quality development to the market that addresses the fundamentals for the end user –high stud industrial space with good operational areas, a large canopy and an office overlooking the yard areas: design of the facility incorporates a number of attributes sought by the market to ensure it is more attractive than other buildings. We are already getting good enquiry levels for the facility, with a number of operators looking at it.”
Leonard says that Flex is about providing an incubator-type environment in which businesses can grow over time.
“What underpins this development is flexible spaces and flexible leases, which is what many businesses are looking for,” he says. “Flex can offer shorter term leases of 1-6 years, or longer if required, which will allow tenants to adapt and grow. We want to make it as easy and attractive as possible for businesses to move their operations to this fast industrial area.”
Brewer says that Auckland Airport engaged with the market early on to design the facilities. “We worked with Sean early on to help them to develop their concept around market needs. We know the airport wants to engage with the market and they have been speaking to a number of tenants regarding what’s driving their businesses.”
Leonard adds: “A key objective of the facilities is to offer size and configuration that the market needs."
About CBRE
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services firm (in terms of 2011 revenue). The Company has approximately 34,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.