East Tamaki property offers options

10:07 AM Wednesday November 2, 2016 True Commercial

The property, at 27 Zelanian Drive, is featured in the latest Colliers Portfolio magazine.

A large East Tamaki warehouse and office property, suitable for a wide variety of uses, is  for sale with vacant possession through Colliers International’s industrial team and is featured in the agency’s latest Colliers Portfolio magazine.

The property, at 27 Zelanian Drive, is being marketed for sale by Greg Goldfinch, Andrew Hooper, Paul Higgins and Brad Johnston by deadline private treaty closing on December 8, unless sold earlier by negotiation.

The 8924sq m site, which contains a large warehouse and offices over two levels, is on sought-after Business 6 freehold land in the popular East Tamaki industrial area, says Goldfinch.

“This is a rarely-available opportunity to purchase a big freehold property on heavy industrial zoned land in East Tamaki. Industrial land in East Tamaki is tightly held, and it’s not very often that large-scale Business 6 zoned land and buildings become available for purchase.”

Hooper says the property will appeal to the owner-occupier and investor market, given the low borrowing rates available and the very tight leasing market in the area.

“Vacancy rates in East Tamaki are low, so medium to large-sized businesses wanting to occupy property in the precinct have few options when it comes to functional buildings with flexible usage possibilities. The opportunity to purchase premises in a highly popular area is likely to appeal to a number of businesses.”

He says a recent rental appraisal shows that, if purchased by an investor and leased, the property could generate annual net rental of around $600,000 plus GST.

Higgins says the property offers 5680sq m of floor area, split across a large warehouse with a maximum stud height of 8.8 metres and adjoining offices.

“The warehouse is very functional and has numerous roller doors and canopies. The office areas are very well presented externally and internally and provide partitioned office spaces, a reception area, a large cafeteria and amenities.”

Johnston says  property offers businesses multiple options owing to the underlying Business 6 heavy industrial land zoning.

“Business 6 land is increasing in appeal among occupiers requiring premises which permit heavier industrial uses,” he says.

“This planning class offers the most flexible and broadest land use options to businesses, making provision for almost any activity and keeping heavy industry separate from more sensitive areas such as retail and residential.”

“For this reason, land in Business 6 zoned areas has become a scarce resource; highly sought-after and quite difficult to come by.”

The brokers expect zoning changes under the Proposed Auckland Unitary Plan to continue to push heavy industrial occupiers into concentrated pockets of heavy industrial zoned land, creating increasing demand.

Goldfinch says the property is five minutes’ drive from the Southern Motorway in the East Tamaki industrial precinct, “which is the scene of exceptional growth”.

“Ever since the opening of the Highbrook Drive motorway interchange, industrial property in East Tamaki has been subject to very high demand, resulting in upward pressure on rents and values.”

Colliers International’s 2016 Industrial Market Research report says that prime warehouses in East Tamaki command up to $125 per sqm, while prime capital values in the precinct are as high as $2465 per sqm.

Both figures are among the highest in Auckland.