Occupy or lease Ota¯huhu warehouse
A highly visible property in the tightly held South Auckland suburb of O¯ t¯ahuhu is for sale, offering prospective purchasers the opportunity to acquire a top-quality asset.
16-20 Tui St has 1886sq m of total building area on a freehold site that measures 3321sq m, subject to a boundary adjustment. The property is zoned Business–Heavy Industry under the Auckland Unitary Plan.
The building is split into two tenancies, separated by a full-height inter-tenancy wall. One of the occupants has a five-year lease that runs until 31 May 2025, while the other will vacate the premises in February 2024.
This means buyers will have the opportunity to occupy part of the property while receiving supplementary income from the other tenancy. Alternatively, an investor may choose to acquire the property and lease the soonto-be vacant space.
Market estimates from Colliers suggest the total annual rental income from the property could be approximately $331,000 when fully tenanted.
As well as enjoying excellent road exposure, the property benefits from its ease of access to Auckland’s key transport touchpoints, including Wiri
Inland Port, Auckland Airport and Port of Auckland.
Colliers directors Mitch Broderson and Ben Cockram are marketing the property via deadline private treaty closing at 4pm, Wednesday November 22, unless sold prior.
Originally constructed in the mid1990s, the warehouse comprises tiltslab concrete panels and long-run metal cladding, supported by structural steel framework.
Both tenancies benefit from a generic layout with strong warehouse to office ratios. They also have front and rear fullheight roller door access. The property has two access points and 60m of road frontage.
All Truck Fix, which has two threeyear rights of renewal available on top of a lease that runs until 2025, occupies a 989sq m tenancy that includes a 627sq m high-stud warehouse. There is groundfloor and mezzanine office space and further workroom space.
The current lease provides $160,000 plus GST in net annual rental income and there are market reviews set for every two years from 1 June 2023.
The premises that will be vacant early next year, currently tenanted by LicenSys, spans 897sq m with 672sq m of warehouse space.
There is further available yard space at the rear of the site as part of a longterm lease agreement with the neighbouring property.
Broderson says industrial floorspace remains keenly sought in Auckland. “Research from Colliers notes the overall vacancy rate for industrial floorspace is only 1.7 per cent and prime industrial space in the subject locality is only 0.2 per cent, indicating the dearth of available space.
“This property provides occupiers with the opportunity to secure their own premises and enjoy a steady rental stream from an established tenant in the neighbouring tenancy. There is also scope for an add-value investor to acquire the property, enhance the tenancy that will soon be vacant, and then lease it.”
Cockram says this location remains sought-after. “It is less than 15km to Auckland CBD, while SH1 is 4.1km away. SH20 is only 3.3km away and Auckland Airport can be reached in approximately 20 minutes.”