Record low vacancy rates and closeness to a key new transport link are helping to drive interest in a large new industrial development under construction in Mt Wellington.
The development, under way at 829 Great South Rd, is being marketed for lease by Colliers International industrial sales and leasing director Hamish West; and Nigel Ingham of Commercial Realty.
West says the 4950sq m building is less than 1km from the planned intersection with the East West Link, a priority project of the New Zealand Transport Agency (NZTA). A new four-lane road will be constructed between the Onehunga interchange, with State Highway 20 and the Mt Wellington interchange with SH1 greatly improving links between the east and west of the city and the wider region.
NZTA Auckland highway manager Brett Gliddon says the project will play a crucial role in New Zealand's economic growth.
"The East West Link will be a vital connection in the transport network that keeps Auckland moving," he says.
"Its location is at the heart of the country's industrial and manufacturing industries."
Resource consent for the project is due to be considered by a Board of Inquiry, and NZTA hopes construction will start next year.
West says closeness to the East West Link will be among the key appeals to prospective tenants of the new building, which is being developed by Southpark Corporation.
"It is also ideally situated only 1.6km from the Mt Wellington interchange with the southern motorway, giving it excellent access to the rest of Auckland and beyond."
West says the building is under construction and is due to be completed in August, so interested parties shouldn't delay.
"We are looking for strong tenants ready to commit to this building for a lease of over eight years," he says.
With vacancy rates at an all-time low, West says tenants in the Mt Wellington area are now experiencing modest rent increases.
"Making the move to a modern facility like this is a logical step as the efficiencies gained in stud height and good access more than account for the small difference in annual rent."
Designed by Eclipse Architecture, the building has warehouse space of 4400sq m and office space of 550sq m and will be constructed of steel portal and concrete slab.
Ingham says benefits include a high 10m stud warehouse, LED lighting, a large yard and drive-around access providing good truck circulation. Another drawcard is the building's high profile location on a main arterial road.
"These buildings are visible to over 25,000 passing vehicles daily, which offers the potential for huge brand exposure," says Ingham.
The property is likely to appeal to businesses with warehouse or showroom trade distribution operations, he says.
Southpark Head of Property Jarrod MacGregor says the development's centrality will be one of the key appeals to businesses.
"There's good reason why Mt Wellington is considered among Auckland's top industrial locations - it's only 12 minutes from the CBD in normal traffic," he says.
"As the motorway network becomes more and more congested, businesses are seeing more financial benefits to being centrally located."
As well as being close to the CBD, the property is only 2.5km from Sylvia Park, 14.6km from the Ports of Auckland, and 13.1km from Auckland International Airport.
MacGregor says the building sits on the largest contiguous development site in the central industrial heartland of Mt Wellington.
It forms part of a 27,281sq m site purchased by Southpark 20 years ago.
The first new building on the site, adjacent to the new development, is home to major national brand Ideal Electrical. The company recently moved into the building on a 12-year lease.
MacGregor says the new building will be central on the site, with another office and warehouse with a floor area of 4350sq m to be built alongside it.
"There are also more future opportunities, given Southpark owns a further 2.5ha of neighbouring development land at 15 Bell Ave."
Southpark is one of Auckland's largest industrial landowners and has been responsible for the redevelopment of sites such as the former Affco, Shortland works, Taniwha works, Pikes Point, Roscommon quarries, and Takapuna Tower.