A scarcity of A-grade industrial space will partially be met with the lease or sale of a modern warehouse facility in the popular Airpark precinct at 132 Pavilion Drive, Auckland.
The 7457sq m Business 5-zoned warehouse and office facility sits on a 9797sq m site and was built in 2006. It has a 9.4-11.3m stud height, as well as drive-through access and roller doors, and includes 1325sq m of concrete yard and canopy areas, plus 935sq m over two levels of offices and staff amenities.
"It is unusual for properties of this calibre to come up for lease or sale at this present time when there is a real scarcity of A-grade industrial space available," says Scott Soroka of CBRE, who is marketing the complex with colleague Claus Brewer.
Soroka says there are two main factors driving the shortage of premium industrial space.
"Firstly, the global financial crisis has driven a flight to quality property with the modern pre-requisites of clear-span space including better cubic capacity, which reduces the cost per pallet and the efficiencies created by having a drive-through site. A-grade facilities also have full canopies that allow for dry loading and unloading in almost any type of weather.
"Secondly, anyone who has managed to occupy grade-A quality industrial facilities in recent years is holding on to it," Soroka says.
Little top-quality industrial space has been developed since 2008, exacerbating the shortage. "A-grade space developed over recent years has been predominantly designed and built for multinationals on planned industrial estates.
"It is therefore very rare for a facility of the quality of 132 Pavilion Drive to come up for lease - and even more so for it to be for sale in a fast-developing area. Product of this quality is in severely limited supply and particularly space that is ready for immediate occupation."
Brewer says the warehouse was purpose-built for a logistics company and is now vacant.
"It has full-height, clear-span space across the total expanse of the warehouse and is ideal for immediate occupation by companies in the logistics, transport, freight-forwarding or distribution sectors," Soroka says.
"It also has full drive-through access linking Pavilion Drive to Penihana Place and an expansive yard canopy permitting efficient traffic flow through, and a large useable area during poor weather conditions."
Brewer says the facility is well located in a modern subdivision with good access to Auckland International Airport and the Southwestern Motorway. It is 21km from Auckland's CBD and 12km from central Manukau.
Soroka says the Airpark precinct is home to many of Australasia's largest logistics and customs companies, which want modern premises offering a better work environment along with "more bang for their buck" by cutting down inefficient space.
"We are experiencing high demand from businesses that want to relocate from traditional industrial areas to sites in the airport precinct, into buildings better suited to their requirements and offering logistics solutions at a more cost-effective price."
Soroka says land zoned for commercial and industrial development within Manukau City has become increasingly scarce, and Auckland Airport has the major advantage of owning large tracts of land with a zoning that allowing a range of uses.
Soroka says another attraction of an Airpark location is that the airport area itself has become a "mini-town" housing national retailers, a Foodtown supermarket, greater cafe and dining choices, along with a variety of accommodation, childcare and fitness centres.
Brewer says CBRE latest South Auckland MarketView report shows that South Auckland is continuing its recovery. In the second quarter of this year, prime rents increased from $106/sq m to $107/sq m per annum, while secondary rents increased from $67/sq m to $68/sq m per annum.
Soroka says banks are supportive of businesses with good cash flows seeking to purchase their properties.
"We are seeing a trend of owner-occupiers taking advantage of cheaper interest rates and purchasing properties to create long-term security for their businesses," he says.
"This is particularly evident in the industrial sector where we have been involved in several recent sales to owner-occupiers."