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The last 18 months has seen demand for large industrial properties heat up across the Auckland region, with both investors and owner occupiers eager to secure a position in the market. As a result several large properties are now coming to market to take advantage of this momentum. One such property, one of the largest industrial complexes in central Wiri, is 21 Hobill Avenue, now being marketed for sale or lease by Paul Steele, of Jones Lang LaSalle and Claus Brewer, of CBRE.
The property, which is located only minutes away from the southern motorway, covers a site area of 3.11hectares with 14,910 sqm of floor space.The building has a heavy rated concrete floor, steel column structure and metal cladding. Due to the previous history of the building, the space also includes full length gantry rails and significant power supply. It is also located in a Business Zone 6 area allowing for heavy industrial activity. With good yard areas, drive-around truck access and relatively low site coverage this property offers a future-proofed solution for an occupier, investor or developer.
Wiri has recently become one of Auckland’s fastest growing commercial zones and home to some of Auckland’s largest manufacturing and distribution complexes. It currently offers significant cost benefits over more traditional industrial areas in South Auckland, where land prices are at a premium. The area is increasing in appeal to occupiers that require premises that permit heavier industry uses thanks to its Business Zone 6 planning class. Over time it is expected that the Unitary Plan will push heavy industrial occupiers into concentrated pockets of Business Zone 6 areas, ensuring continued long term demand for this planning class.
Paul Steele says, “The Wiri area is experiencing a high level of interest from occupiers and investors resulting in low stock levels making this a very attractive property to come to the market. The recent SH20 motorway extension coupled with the Waterview motorway extension which is currently under construction has opened up the Wiri area to excellent transport links and improved operational aspects for occupiers. This has subsequently translated into capital growth for investors.
Claus Brewer continues, “Such improved transport links, together with the ease of access to the Wiri Inland Port has dramatically enhanced the area's ability to provide logistics and manufacturing companies with ready access and inward and outward product movement in all directions. Wiri's potential as a valuable industrial location is now firmly recognised with some of New Zealand's biggest brands having already discovered the benefits of basing their operations in this area. Such brands include K-Mart, Bridgestone, Progressive Enterprises and Foodstuffs all having premises in the location.
“With the majority of the existing tenant’s on short lease terms the asset provides the opportunity to renegotiate and extend leases as well as the ability to gain vacant possession over a large proportion to add value or simply redevelop.”
Steele concludes, “What makes this site so appealing is its versatility in regards to its future opportunity for potential investors, developers or occupiers. With Greenfield sites in the Wiri area becoming increasingly difficult to secure and with the rise of brownfield development in the market purchasers will be able to consider the possibility of various schemes on this large land holding.”