Two of last Wiri owner-occupier parcels up for sale
Two of last Wiri owner-occupier parcels up for sale
5 August 2014
Auckland, 5 August 2014 - At a time of high levels of interest and activity across South Auckland’s industrial property market, and diminishing levels of properties and land for sale, CBRE is marketing two industrial properties that provide strong opportunities for a variety of owner occupiers.
Mark Bramwell says that as Wiri has become the focus of modern development over recent times, , largely as a result of the improved transport links and scarcity of industrial land supply within Auckland, land within the Roscommon Road and McLaughlins Road precinct has been rapidly developed.
“There is very little stock available in Wiri. With fewer and fewer options around, these two properties represent great opportunities that can be bought by owner occupiers at affordable levels.
“Purchasing one of these properties would position owner occupiers well for growth in the property cycle. So we would say to owner occupiers that now is an opportune time to get a foot in the market, otherwise the only choice will soon be to lease space or go further south.”
133 Roscommon Road comprises a 15,681sqm freehold site. Fronting Roscommon Road, and only 650 metres from the State Highway 20 on/off ramp, the site has four points of access, including a right of way stretching the length of the site.
The property benefits from 160sqm of offices, workshop, a full perimeter fence, and metal/tarmac surfacing.
Offered for sale by negotiation, expressions of interest are due to close on 14 August.
Paul Steele describes the property as “priced to sell, with the opportunity for a short holding income or vacant possession upon settlement. This is a great value-for-money property that would suit construction, landscaping, scaffolding, infrastructure or transport companies,” he says. “This is particularly due to the right of way all the way along the site, allowing multiple access points and multiple uses for the property.”
“The property is zoned Business 6 in the Manukau City Operative District Plan 2002. Business 6-zoned areas such as this are a scarce resource of some importance because they are areas where heavy industrial activity can be established.”
5 McLaughlins Road comprises an 8,000sqm freehold site with 1,765sqm of buildings, including office, gantry crane and washbay, whilst 9 McLaughlins Road provides a 2,000sqm concreted yard on a freehold title.
The sites are available for sale or lease either collectively or as separate titles. The property is offered for sale by negotiation, with CBRE seeking initial expressions of interest by mid-August this year.
“The warehouse has a 7 metre stud rising to 10 metres at the apex,” says Bramwell. “It has great access through nine roller doors, and drive-through access from a secure yard, as well as a rolling gantry crane that runs the length of the warehouse interior.
“There is over $400,000 of holding income per annum currently in place. Its very low site density means that it offers plenty of room to develop, with income that provides time to plan. Essentially, a purchaser would be able to buy this property at below replacement value. It would suit a truck or car centre, auction house or for use by construction or scaffolding companies as a base of operation.”
According to CBRE’s recently-published Prime Property Performance Index, rents rose strongly in Auckland in Q2 2014, with the greatest influence coming from the industrial sector.
“Following previous modest gains, industrial has kicked into higher gear over the past 18 months,” says Steele. “In the past quarter, rents have experienced growth significantly above other sectors. In Auckland’s prime industrial market, rents have risen substantially in the past two quarters and are now up 7.3% over the past year.”
“Prime industrial market yields are still firming due to active investor interest amidst limited investment opportunities. Yields are being pushed down by strong investor appetite and the banks have been keen to lend money, so there is a lot of competition now between owner occupiers and investors.
“The market is very tight, with not a lot of stock available for sale or lease, mainly because there has been no new supply and not much speculative activity since 2008. Some spec development is taking place, but mainly by the big listed property institutions, which then only lease space to occupiers.”
Bramwell says: “Among the activity we have seen is Storepro Storage Solutions, which has moved from Mt Wellington to the airport. Also, we recently sold the 4000sqm developable site at 3 Balemi Way that featured in Commercial Property in May. We found the right occupier quickly – Diggabits, a company that specialises in new and used parts for earthmoving equipment – and achieved a great result for the client.
“There are still pockets of land available in the area, but it is being sucked up. All of this points to now being the moment for owner occupiers to consider their options.”
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 and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 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 website at www.cbre.com.