Penrose warehouse-offices well sited
The light industrial property at 25 Walls Rd, now generates $106,302 in rent. Photo / Supplied
The land and building housing an import and distribution company at Penrose are for sale.
The light industrial property, at 25 Walls Rd, has a long-term lease in place and should be of interest to buyers looking for a hands-off investment in an in-demand asset class, says Mike Adams on Bayleys.
It is among 65 properties featured in Bayleys’ Total Property portfolio magazine and is being marketed by Adams for sale at auction on October 25.
“It’s in the heart of the Southern Corridor — a popular light industrial and business precinct comprising Ellerslie, Greenlane, Mt Wellington and Penrose,” Adams says.
The freehold property — zoned Business Light Industry — comprises a 702sq m, modern adaptable building on 1037sq m of land, with a 24m street frontage.
Generating $106,302 in net annual rent, the building is well maintained and encompasses 39sq m of office space, a 464sq m high stud warehouse, 55sq m canopy area for parking and 145sq m of mezzanine space.
Built in 2007 of tilt slab panels and longrun roofing, it is occupied by Jac Jay Ltd which imports and distributes specialist coating products aimed at enhancing architectural projects. The products are widely used in the construction industry.
Jac Jay has operated out of the building since completion and signed a new six-year lease on the property, running to October 2023, with three three-year rights of renewal.
Walls Rd is a popular destination for light industrial, warehousing and manufacturing businesses, and is home to tenants such as Fletcher Homes, Animal Control Services and PK Auto Electrical.
Adams says the property also benefits from being close to Penrose train station, retail and hospitality amenities.
“Penrose has become a desirable location for many businesses looking for accommodation outside of the CBD. It is roughly halfway between the Auckland CBD and Auckland International Airport, and transport routes are also easily accessed via main arterials and motorways.
“Demand for industrial and warehouse property in the suburb, from both tenants and investors, is strong. The newness of the building and the modern fit-out of the office and warehouse make it an ideal passive investment property for family trusts and private investors.”
Bayleys’ latest survey of Auckland industrial real estate says vacancy levels in Penrose dropped from two per cent in 2016, reaching below one per cent this year.
Rental levels in the area are steadily rising while yields are firming, ranging between five-and-a-half percent and seven per cent, Bayleys research shows.
Despite more than 1m sq m of new industrial premises being consented at Auckland in the past four years, vacancy remain at historic lows of close to 3 per cent.
Adams says this high level of occupier demand makes industrial property a highly sought-after investment asset, as evidenced by the fact that it accounted for 56 per cent of Auckland commercial property sale transactions in 2016.