One, two or three North Shore commercial units
An elevated view of the industrial property for sale at 207 Archers Rd, Wairau Valley.
Three commercial units leased to two automotive businesses and a kitchen company are for sale in Archers Road, Wairau Valley, on Auckland’s North Shore.
“The units collectively bring in $144,840 in net annual rent,” says David Mayhew of JLL’s North Shore team who, with colleague Jaye Miller, is marketing the 1215sqm property at 207 Archers Rd via an expressions’ of interest campaign, closing on September 1.
“The property is located in a busy industrial area and interested parties can make an offer on one, two or all three units,” Mayhew says.
The largest of the three units is 565sqm and is tenanted by Automotive Transmission Limited. It is on a four-year lease from April 1, 2015.
The second is 340sqm and is on a two-year lease to United Kitchen Limited, last renewed on September 11, 2015.
The third unit is 310sqm and is leased by Top Motor Services Limited with the lease renewed for two years on April 20, 2016.
“This property is on the market for the first time since 1979 and we expect it to attract strong interest as there is a real shortage of investment stock in this area,” says Mayhew.
Miller says there is “definite upside” for the new owner with the property having a high profile location on a busy road, just off the main thoroughfare of Wairau Road.
“The location is just 10 minutes’ drive or 3.5km from Takapuna, and 20 minutes’ drive or 11km from Auckland’s CBD. Access to the State Highway One motorway heading south or north is just around the corner.”
Miller says JLL has seen a resurgence in the North Shore commercial and industrial market.
“We’ve seen significant increases in value over the last 18 months, thanks to a variety of factors including low interest rates, low vacancy levels, huge owner-occupier demand and investment yields at an all-time low.
“The suburbs around Archers Road are heavily populated and will become more so in the next several years.
“The resident population density within a 2km radius of the property is forecast to increase substantially from 2755 per sq km in 2015 to 3331 in 2043.”
Miller says there are a notable number of special housing areas within a short distance of the property with the largest being the Takapuna Strategic Area having an estimated dwelling potential of 650 dwellings followed by the 573 homes in the Northcote Strategic Area.
“The latest edition of JLL’s annual New Zealand Transaction Trends report which monitors the office, industrial, retail and mixed sectors, shows that in 2015, favourable economic conditions continued to fuel demand for property assets from both international and domestic investors.”
“The report also shows that Auckland remains the dominant destination for capital with 63.4 percent of the transactional volume in 2015.
“The industrial sector was the only sector to show higher sales than in 2014 with total sales value growing by 47.8 percent to reach $762.8m,” Miller says.
The report says enticing returns and a supportive, transparent investment environment paired with stable economic fundamentals will continue to make New Zealand as a destination for commercial property investment in 2016.
David Mayhew (left), and Jaye Miller (right) of JLL North Shore