Rail link creates major leasing opportunities
Three modern warehouse properties being developed in South Auckland by Asia-Pacific logistics specialist LOGOS are on the market for lease.
The properties in the new Otahuhu Logistics Estate are set for completion mid next year and will include warehousing, two-level offices and hardstand space. An independent rail link will connect directly into the site.
CBRE agent Claus Brewer, who is marketing the properties with colleagues Bruce Catley and Chad Greer, says: “As the new post-Covid-19 norm asserts itself, demand for modern, well-located, well-connected warehouse space is dramatic.
“Independent rail connectivity in the heart of the Otahuhu precinct is a major prize for any occupier looking to ship or receive goods overseas, to distribute goods across the upper North Island, or to funnel them into last-mile destinations within Auckland. An independent rail line equals independent flexibility to operate.
“With the focus on last-mile delivery capability more important than ever to help retailers and logistics companies realise same-day delivery opportunities, the Otahuhu Logistics Estate is a worthy candidate for consideration. The facilities available for lease in the Otahuhu Logistics Estate offer significant size, footprints, scale and connectivity in this central Auckland location.”
The largest facility within the 17.2 hectare estate, Lot 4, comprises a circa 20,000sqm warehouse and
1,200sqm, two-level office complex. Occupying a 4.4 hectare site, it also offers a total awning area of 3,740sqm plus 12,575sqm of hard standing area, as well direct rail access into the centre of the warehouse.
Lot 3, which occupies the corner of James Fletcher Drive and Savill Drive, offers total building area of
4,300sqm, comprising a 3,800sqm warehouse and a two-level, 500sqm office. Sitting on a 7,249sqm site, the property has a 530sqm, 10m-wide awning and a further 1,008sqm of hardstand area.
On Lot 8, a 7,973sqm site that fronts James Fletcher Drive, a
3,620sqm warehouse is complemented by a two-level, 500sqm office. Together the buildings total
4,120sqm, plus a 10m-wide, 530sqm awning and a further 1,176sqm of hardstand area.
Brewer says that there is still the ability to work with LOGOS to gain some bespoke amendments to the sizing of the facilities.
“As brand-new facilities, they are to be of excellent quality in terms of their fabric, their design, and their footprints. They are well suited to a range of uses. For example, they would provide an ideal colocation opportunity for an offshore business. Also, as we can have a swift and definitive timeline for completion, now is the right moment for occupiers to engage with us to accommodate their needs ahead of occupation next year.”
Located on the corner of James Fletcher Drive and Savill Drive the central Auckland industrial precinct of Otahuhu, the Otahuhu Logistics Estate is exceptionally well positioned from a transport perspective, says Chad Greer.
The established industrial area is centrally positioned in New Zealand’s industrial heartland and benefits from proximity to key infrastructure and major arterial networks including the Southern and South Western Motorway, as well as Metro Port.
“Only three kilometres from the South Western Motorway, 4km from the Southern Motorway, 10km from Auckland Airport and 18km to the CBD, the Otahuhu Logistics Estate is perfectly positioned for businesses looking to reach into the city and out into the North Island roading network.
“Additionally, as it is only 7km to Metro Port and 18km from the wharves of Ports of Auckland, the estate has great access to sea and inland ports. It also presents as a strategically unique rail and transport location; a core logistics hub with good reason.”
Prominent occupiers in the vicinity include Toll Group, who is within the Estate, and Pacific Steel, Holden, NCI Packaging, Steel Tube, Supercheap Auto, L’Oral and Progressive Enterprises.
Otahuhu is one of LOGOS’ two New Zealand industrial precincts. A dynamic and growing logistics specialist with operations across New Zealand, Australia, China, Singapore, Indonesia, Malaysia, Vietnam and India, LOGOS entered the New Zealand market in 2018 when it announced plans to develop a NZ$500 million logistics estate at Wiri, and then has subsequently purchased the Otahuhu Logistics Estate subject to OIO.
The company manages every aspect of logistics real estate, from sourcing land or facilities to undertaking development and asset management, on behalf of some of the world’s leading global real estate investors. LOGOS has over 6 million sqm of property owned and under development, with a completed value of A$10 billion, across 20 ventures.
Tony Catton, Senior Development Manager for LOGOS in New Zealand, said: “The Otahuhu Logistics Estate is a strategic addition to our New Zealand portfolio as we look to further strengthen the logistics and distribution offering in this market through the development of modern, quality logistics and intermodal facilities in well-located areas.”
This commitment to the location and to New Zealand is echoed by Brewer. “CBRE’s latest research shows that industrial space demand is holding up after Covid-19, and particularly for well-located and connected prime properties that provide exceptional flexibility. We term it ‘the flight to purpose’; now more than ever occupiers need the right facility for their purpose,” Brewer says.
He adds: “The Otahuhu Logistics Estate offers the latest design, facilities, access and flexibility. Its connectivity to the road and rail networks means that occupiers will have maximum ability to send and receive goods across New Zealand and the world.”