Wheels in motion for depot sale
An industrial site in Upper Hutt, which is being used as a bus depot, is up for sale.
The 5392 square metre site on Masefield St, in the Whakatiki Industrial Precinct, is leased to NZ Bus, which expires on June 30.
Colliers International agent Tim Julian said the lease gave the new owner time to consider future uses for the property. ‘‘The current short-term lease gives the new owner the flexibility to either offer the property for lease to a new tenant, or prepare for taking occupation of the site themselves.
‘‘This is an excellent opportunity for an owner-occupier, in particular, but will also appeal to investors looking to capitalise on the tight market conditions prevailing in Wellington industrial property at the moment.’’
The latest industrial report by international real estate firm JLL showed vacancy rates in the capital now sit at 3.4 per cent, as last year’s 7.8 magnitude earthquake heightened leasing demand in all sectors.
In October, JLL research consultant Chris McCashin said a lack of available land in and around Wellington, meant large-scale industrial development had been a difficult proposition as land prices had risen.
However, there had been a rise in development activity in decentralised areas, such as Upper Hutt and Porirua, McCashin said.
Colliers International agent Kieran Lennon said low vacancy rates set the backdrop to market conditions, and Upper Hutt reflected that.
‘‘In the past few years we’ve seen businesses opt to move to Upper Hutt, where property generally offers cost savings compared with the more central industrial precincts.
‘‘With the roading improvements that are under way, this trend is anticipated to continue.’’
Roading infrastructure improvements in the area include the new interchange at the intersection of State Highways 2 and 58, and the upgrade of Haywards Rd.