Tight market bolsters industrial investments
Colliers' latest research finds the investment characteristics of industrial property's golden run were evident again during the past year. The trend is set to continue given the tight supply and sustained demand across Auckland.
One such opportunity is 483B Rosebank Rd, Avondale, a two-level warehouse and office property that provides 734sq m of total net lettable area in a popular industrial precinct.
The property, zoned Business–Light Industry under the Auckland Unitary Plan, offers the chance to secure a top-tier, splitrisk investment with an opportunity to generate further income.
The warehouse space is leased, leaving the upstairs office tenancy available to market. The property has 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.
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 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. It also has access to two car parks. Its 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 NZ leases four car parks on a six-monthly ongoing basis. Its agreement provides $4160 plus GST in net annual rental income.
The first floor office space, which is airconditioned, spans 367sq m and is currently part vacant, providing a range of options for prospective purchasers.
Tarm 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.
Bashota says Rosebank is home to a number of big-brand tenants 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.”