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News Release

Auckland

Airport warehouse with significant upside

JLL and CBRE are marketing 9 Richard Pearse Drive, Airport Oaks


 

 

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9 Richard Pearse Boundary small-min.jpgA large office, warehouse is offered for sale or lease in Airport Oaks, which includes a 5,000sqm development site with drive through truck access.

JLL agent Sam Smith, together with Scott Soroka of CBRE are marketing 9 Richard Pearse Drive, a 17,141 sqm freehold site with a 5,322 sqm office/warehouse. The property has significant upside as it includes approximately 5,000 sqm of development land with the potential to build a further 4,000sqm warehouse.

Says Smith, “The property is being offered with vacant possession, however there is currently monthly income available with a short term tenant utilising part of the warehouse space for storage on a month-by-month basis.  

“One of the biggest benefits has to be the large development site next to the warehouse. The site provides purchasers a wide range of opportunities with respect to building an additional warehouse or creating large yard areas in the tightly held Airport Oaks precinct. The options are there for the new owner to either develop another property to co-exist with the existing building, or to develop a new premise to lease out. Either provides this property with significant upside.”

The property is approximately 20 years old and has been well maintained by previous tenant Agility Logistics. 

Close to the new Kirkbride Road motorway interchange, the property enjoys dual access from both Richard Pearse Drive and Ascot Road, and is also only a five-minute drive from Auckland Airport. The area is busy, with many logistics and warehousing firms utilising the location for its accessibility to the airport and major transport links such as SH20. 

Says Soroka, “A property such as this is perfect for distribution due to the large warehouse space and drive through truck access.”

Properties offered with vacant possession have been in high demand within the industrial owner occupier market. Augusta recently sold 100 Carbine Road to an owner occupier for $36.8 million in one of the largest single-industrial property transactions in recent years. 

“Given the scarcity of industrial land outside of airport control in South Auckland, the fact this property has room for expansion is a major bonus for the eventual purchaser. This is especially pertinent given the relatively high density of development surrounding the property,” says Soroka. 

JLL Associate Director of Research and Consulting Tom Barclay says, “JLL’s most recent industrial vacancy survey conducted in June 2017 shows a vacancy rate of only 3.1% in the popular Airport Oaks precinct. This represents only 41,000 sqm of available space against the total market of 1.32 million sqm, which JLL tracks in the area, and clearly demonstrates the popularity of the area with major manufacturing and logistics occupiers. Further to this point, net absorption for the Airport Oaks precinct over the past 12 months has exceeded 132,000 sqm. The fact the industrial footprint has expanded by this much in such a short period of time without a corresponding rise in vacancy speaks to the strength and desirability of this location.

“The high levels of development occurring in the Airport Oaks precinct, driven largely by Auckland Airport, will underwrite the performance of this location long term. The area is quickly evolving into the most desirable industrial precinct given the modern stock, access to key transport routes, as well as proximity to the workforce and the city.” 

9 Richard Pearse Drive will be offered as vacant possession and sold through a Deadline Private Treaty campaign closing 4pm, Friday 22 September 2017.