Planned industrial units snapped up
With bank interest rates at an all-time low and the industrial property market continuing its stellar run, units within a proposed new industrial complex in Te Rapa north, Hamilton, are quickly selling off the plans.
Buildings range in size from 79sqm to 136sqm and several of the 23 industrial stratum-infreehold units planned for Earthmover Crescent are already under contract.
‘‘Of note is the interest coming from owner-occupiers keen to get on the property ladder at an accessible price,’’ says Rebecca Bruce who, with Jordan Metcalfe, is marketing the property.
Earthmover Limited Partnership and development manager for the project, Veros Property Services, are bringing the development to life. The Veros team recently completed Portside Industrial in Mount Maunganui.
‘‘There’s a huge appetite for quality industrial units in the Waikato. Purpose-built, wellplanned units in astute locations and at an entry-level fixed price are resonating with owneroccupiers and investors with the upfront price streamlining the process of securing finance with banks and lenders,’’ Bruce says.
The units are also options for those who have previously considered investing in the residential property market.
‘‘Many residential investors have concluded the compliance thresholds and other facets of the residential sector have taken the shine off that investment environment from a returns perspective.
‘‘These buyers are increasingly turning to industrial property given the proven returns, the low vacancy rates being experienced, the general resilience of the sector and the less-certain fundamentals in the residential investment market.
‘‘And with commercial/ industrial tenants typically responsible for all property outgoings, the bottom line starts to look even more attractive for hands-off investors.’’
A 10 per cent deposit is required by buyers and once the developer’s threshold has been met, construction will get underway with completion of the Earthmover Crescent project expected by mid-2021.
‘‘This allows a decent lead-in time for owner-occupiers to exit their existing premises and get their relocation ducks in a row, and gives investors time to source a suitable tenant,’’ says Metcalfe, who believes the inherently low-maintenance, flexible design and functionality of these units will appeal to a wide range of businesses and industries.
They are expected to be popular with tradespeople, as off-site facilities for online or physical businesses needing storage for stock inventory; even as an extra garage for those with recreational vehicles.
Units with road frontage could also present opportunities for showroom space which casts the net even wider in the tenant or owner-occupier market, Bruce says.
‘‘This site has streamlined access to the motorway interchange, to The Base commercial centre and to nearby residential catchments including Pukete and Rotokauri.’’