Ideal for owner-occupiers

9:55 AM Saturday September 13, 2014 Colin Taylor

Industrial property for sale at 5 Fenton St, Eden Terrace, Mt Eden.

Two Auckland city-fringe warehouse properties in Mt Eden and Morningside will be auctioned next month as part of Colliers International's latest New Zealand Portfolio campaign.

Both will be auctioned at Colliers auction room at 151 Queen St in the Auckland CBD with 5 Fenton St, Mt Eden going under the hammer at 11am on October 7 and 37 Leslie Ave, Morningside, for auction on October 9.

Jonathan Lynch, who is marketing the duo with colleague Peter Kermode, says the demand for city-fringe commercial property among owner-occupiers is growing, with a marked rise in preference during the past year for properties in Auckland's inner circle of city-centre suburbs.

"There is no shortage of demand for commercial properties in good locations near the CBD and as such we expect these properties to attract a lot of interest from potential occupiers," Lynch says.

The Fenton St property in Eden Terrace encompasses 695sq m of building area across two self-contained tenancies on an 895sq m freehold mixed-use site.

Kermode says the warehouse tenant is moving out and a law firm occupies the office portion on a short-term tenancy arrangement.

"The warehouse portion will be available for occupation immediately, allowing an owner-occupier to move into the warehouse while retaining the income from the tenanted office space. Alternatively, the whole property could be purchased vacant for a single business to occupy the office and warehouse," he says.

Lynch says it also offers redevelopment potential.

"The site's mixed use zoning and its location near Mt Eden station sets it to benefit from development associated with the city rail link project. We are already seeing the construction of apartment, office and showroom developments on former light industrial sites in this area and we expect increases to both land values and rents as a result of the rail link."

Located 3km from the Auckland CBD and equidistant from Newmarket and Grey Lynn, it has easy access to the city and other key suburban business hubs.

The Morningside warehouse provides 1448sq m of warehouse and modern office space on a 1660sq m site, including 580sq m of excess land used for car parking.

Kermode says two tenants are in occupation, paying net annual rental income of $156,000, but a 12-month demolition/redevelopment clause gives the buyer plenty of options.

"This property provides great business premises with very well-presented office space, so it is perfect for an owner-occupier looking to move in and take advantage of a location close to Eden Park, cafes and arterial roads and the upcoming Southwestern Motorway extension."

The property also offers the potential to capture extra value, with the surplus land able to be built on or put to use as an extra income stream from sealing and renting the car parks, Kermode says.

"Business owners know that a location close to the city centre can offer many benefits," he says. "A central location can help businesses attract and retain staff, and cuts transport costs and time for companies which service the CBD. Also, many savvy business owners today have an eye for potential future upside. They could buy a warehouse property and run their business from it for 10 years, by which time it could be ripe for redevelopment into apartments, given Auckland's growing population.

"There are few opportunities to increase the supply of city fringe commercial properties to meet the current demand, so properties like these tend to get snapped up."

Lynch says both properties are functional and offer "turn-key solutions" for owner-occupiers looking to move and continue operating with minimal business disruption.

"When it comes to city-fringe warehousing, these are both great properties - accessible and functional, with good stud heights, roller doors and plenty of space for storage and transit."

While both properties have been on the market before, Lynch says the vendors are prepared to meet the market and he urges potential buyers to ignore any previous pricing. "These properties are both seriously on the market and provide an excellent opportunity to acquire attractively-priced business premises."

True Commercial - 37 Leslie Ave, Morningside.jpg (1)

Industrial property for sale at 37 Leslie St, Morningside.