Onehunga site presents broad future options
With Auckland’s overall industrial vacancy hovering around 1 per cent and limited supply of new warehousing coming to the market, a multi- tenanted Onehunga investment property is attracting solid inquiry from a wide range of prospective buyers.
30- 32 Hill St comprises five functional office/ warehouse tenancies with a total floor area of 928sq m on 1503sq m Mixed Usezoned land, billed as an affordable industrial investment with scope to increase rental.
Tenants include a not- for- profit organisation, specialist grocery wholesaler, tyre firm and freight logistics provider, with one vacant tenancy.
Tenancy one comprises a twolevel office property and tenancy two is an industrial warehouse with offices and amenities.
Currently vacant, tenancy three is a commercial office space across two levels, providing immediate rental upside or owner- occupier capacity.
Tenancy four is the largest of the five and comprises a functional industrial unit with high- stud warehousing, showroom, office and amenities.
The fifth space is commercial office or light warehousing with good natural light, a large deck and ample secure yard/ parking to the north of the site.
Current net annual income is around $ 178,550 plus GST with occupiers on varying lease terms.
The property is being marketed by tender closing Thursday December 14, unless sold prior, through James Valintine, James Were and Phil Haydock of Bayleys.
The Onehunga industrial area is one of the most intensively developed industrial localities within Auckland. Were says demand for space remains robust with both national and international occupiers opting to base themselves in the area for operational efficiencies.
“This functional and adaptable property is centrally located between SH20 and Onehunga Mall with direct access to SH20 and SH1 via Neilson and Church streets, making it a strategic location for businesses,” he says.
“Decent- sized properties are hard to come by in central locations such as Hill St and, as some of the existing leases are fairly short, there’s opportunity for an owneroccupier to scope out a staged relocation across the whole site while enjoying the passing income.
“Alternatively, an owner with more modest space requirements could simply occupy the vacant tenancy and clip the income ticket from the balance of the site, firming up leases as they roll over.
“There’s potential rental upside to be realised given that data indicates low vacancies and strong competition for space are continuing to underpin rental growth, so the property would also be ideal for passive or add- value investors keen to secure favourably zoned space.”
With minimal vacant industrial land in the broader OnehungaPenrose area, Valintine says addvalue investors or developers may acquire the site and ride out the leases for the next few years while working through plans to optimise the 1500sq m land parcel.
“While the current configuration provides functionality, flexibility and capacity for industrial, or commercial use to split risk, the Mixed Use zoning provides greater live/ work potential or a future redevelopment opportunity,” he says.