The sale of a refurbished but mostly vacant industrial and showroom property in Lower Hutt, Wellington, presents an ideal chance for businesses to own their own premises in a low-vacancy market.
The two-level building at 69 Pharazyn St, Melling, is being marketed by Ben Taylor and Tim Julian of Colliers International and is for sale by deadline private treaty closing on March 29.
"With the low funding rates that are still available, many businesses are making the decision to buy their own business premises rather than leasing," Julian says.
"This allows businesses to have full control over decisions relating to their property, as well as ensuring their continued occupation of the property for as long as they choose."
The multi-use building is divided into three separate self-contained tenancies: one comprising upstairs office space which is currently occupied; and the other two havingground-level showroom and warehouse combinations.
"With the separate self-contained areas, there is a lot of flexibility here for owner-occupiers. A business could occupy the lot, or just use one or two of the spaces and lease out the remainder to generate an income stream while retaining ownership of the extra space to accommodate growth over time," Julian says.
Taylor says industrial vacancy in the Wellington region is under 3 per cent, so a scarcity of suitable industrial premises is an ongoing issue.
"There is high demand for industrial property, especially in well-located areas like Lower Hutt," he says.
"The flexible nature of this building's internal configuration makes it suitable for a wide range of business sizes and activities. Its location and good visual appearance will also add to its desirability, in a market where there are few options available for businesses looking to move."
Further compounding the already low vacancy in the area is the upcoming compulsory acquisition of properties on Pharazyn St and Marsden St by Greater Wellington Regional Council, says Taylor.
Some 30 properties in this neighbourhood are to be acquired as part of a council flood protection project, he says. "This will significantly reduce the supply of industrial and showroom space in this popular area adjacent to State Highway 2."
The 1248sq m building was originally constructed in the 1950s and was extended and refurbished under the design and supervision of award-winning industrial designer Neville Parker of Inside Design.
"The result of the refurbishment is a modern, attractive industrial building with generous windows and exterior timber screens at the entrances," Julian says.
The building occupies a prime 1421sq m freehold site with onsite parking for 13 cars and has excellent exposure to State Highway 2 and Pharazyn St which carry over 25,000 vehicles daily in total. It can also be seen from the Melling railway line.
Pharazyn St is an arterial route that runs through the suburb of Melling parallel to the railway line and State Highway 2 which is a two-minute drive away.
The street has a mix of businesses and a variety of uses including light manufacturing, warehousing, motels, residential, and early childhood education providers.
The location has good access to public transport as well as easy driving access to the Lower Hutt central business district and central Wellington.