Wiri warehouse has add value potential

5:00 AM Wednesday December 14, 2016 Colin Taylor

The two level warehouse and office space for sale and lease at 99 Kerrs Rd, Wiri.

A high-profile two-level warehouse is for sale or lease in Wiri, South Auckland, offering a number of options to add value.

“It’s not often such a large freehold warehouse comes on the market in Auckland,” says Sam Smith, national director industrial for JLL who, with colleague Mitch Broderson, is marketing 99 Kerrs Road for sale by expressions of interest closing at 4pm next Tuesday, December 20.

“This property is ideal for owner-occupiers,” Smith says. The a 2764sqm building occupies a 4295sqm site and encompasses a warehouse of 2185sqm with 579sqm of office and amenities. It also has a 180sqm canopy.

“There is a tenant occupying the upstairs office who would be happy to stay and this tenancy brings in about $60,000 gross per annum.”

He says the office is spread across two levels and there is the potential to add value to the property with some renovation. “The office could easily be split to create two separate tenancies and it would also be possible to put in a showroom.”

The building has reception areas on both levels with carpeted offices and air-conditioning.

“This is a modern six-metre high warehouse with no internal columns,” says Broderson, an industrial sales and leasing agent. “It has covered roller doors, making it suitable for a wide variety of tenants, and also has parking for up to 38 vehicles.”

“Kerrs Road is home to a variety of commercial and industrial businesses, ranging from automotive to light manufacturing. This property is zoned for Light Industry under the Auckland Unitary Plan,” he says.

“The owner appreciates the value of this location and would be happy to sell the building or lease it. A feature of the property is its 50 metres of street frontage onto busy Kerrs Road which gives an occupier’s business the benefit of high exposure to passing traffic.

“Transport-wise, it also has easy access to both the State Highway 1 and State Highway 20 motorways,” Broderson says. Auckland Airport is a 10km drive from Kerrs Road, and downtown Auckland is 25km away.

“The southwestern [SH20] motorway has really opened up the Wiri area and made it much more accessible,” he says. “When the Waterview Connection opens at Avondale in early 2017, the connectivity throughout Auckland will be even better – particularly in terms of travelling times to west and northwest Auckland.”

Smith says JLL produces regular Pulse reports on the South Auckland industrial market with the latest report for this sector showing that occupier demand for industrial space in this precinct has remained consistently solid throughout 2016.

“The sector is continuing to expand on the back of strong domestic conditions,” he says.

“Investor demand has been persistent, with tenanted industrial property being highly sought after by those looking for a secure long-term place to invest their capital.

“Wiri has the advantage of being just around the corner from Auckland airport, which is a hive of activity at the moment.

“One of the growth areas in South Auckland is The Landing at Auckland International Airport, where new space is springing up for major industrial occupiers including Fonterra, Coca-Cola and the Ministry for Primary Industries.

“Those properties alone account for more than 30,000sq m of new space and Sistema Plastics has also opened a new facility on the edge of the airport precinct adding a further 50,000sqm of space to the stock base. The airport is also generating a range of spec-built space for the market.”

Smith says JLL researchers predict that industrial yields will drop further into 2017, while rents are forecast to see further upward pressure.

“Overall, the outlook for the South Auckland industrial market is positive for 2017. The economy looks set to continue on a strong growth path which will foster continued expansion of the industrial sector,” Smith says. 

Sam Mitch.jpg

Sam Smith (left) and Mitch Broderson (right), of JLL.