Canny investors train eyes on city’s fringe
The scarce supply of warehousing around Auckland's critical city-fringe suburbs continues to steer investors towards welllocated assets, reflected by interest in a versatile premises with dual leasing capability, Bayleys salespeople say.
James Were of Bayleys Auckland metropolitan markets and Bayleys Auckland corporate leasing director Ben Wallace are marketing a modern office/ warehouse combination covering two floors and 692sq m at 45E Normanby Rd, Mt Eden.
The property is for sale and lease with a deadline closing 4pm, Wednesday May 22, unless sold or leased prior.
Were says existing properties in good locations – particularly those positioned to benefit from significant new infrastructure such as the City Rail Link – provide the biggest opportunity in the market right now.
“Developers are still challenged bringing new supply to market, with feasibility roadblocks including lending and finance creating additional hurdles. While construction costs have largely stopped climbing, density provisions have escalated land values, particularly those in high-value locations and walkable public transport catchments.
“This property provides crucial warehousing supply and the prospect of enhancing value in a traditionally tight local market. The attractive combination of functional facilities, modern offices and a strategic location provides an attractive opportunity for flexible use and will likely suit owner-occupiers, long-term investors, add-value purchasers and tenants.”
Totalling 426sq m, the ground-floor tenancy includes 220sq m of functional, clear-span, on-grade warehouse accessed via a full-height roller door and 206sq m of modern air-conditioned offices.
Upstairs, a second tenancy can be leased separately or tenanted by an entire operator to take advantage of a wellappointed, predominantly open-plan layout with two generously sized offices/ meeting rooms.
There are six to seven carparks and both levels benefit from direct access to covered parking on the doorstep.
Wallace says the property’s configuration provides a split-risk opportunity for future leasing, with scope for rental upside. “Leasing prospects have been strong off the back of rising net migration numbers, with confidence in the small-to-medium business sector reflected by continued leasing activity and a record year for deals at Bayleys in 2023.
“Businesses reassessing their requirements are increasingly looking to smaller footprints in high-amenity areas. This property provides an excellent option through this lens, having been modernised with a current seismic assessment of 100 per cent NBS and a recently replaced roof.”