Plenty of choice for business owner-occupiers

A 1694sq m clear-span warehouse on a 5945sq m site at 126 Boyd Rd, Rukuhia is on the market. Photo / Supplied

CB Richard Ellis has started a nationwide campaign targeting vacant land and buildings for possible purchase by owner-occupiers, with the first portfolio carrying more than $20 million worth of property.

Dominic Ong, who heads CBRE's private client group, says the campaign is expected to "hit the right chord with property owners" because it's a good time to sell and interest rates are down.

"There is more confidence in the property market and prices, while not hitting the highs of two years ago, are stabilising," Ong says.

He says there is a range of property from office buildings to warehouses and Karangahape Rd premises that will suit the pockets of owner-occupiers who can anticipate good buying opportunities, because of a decline in values.

Ong says increasing vacancy rates across all property sectors have resulted in more choice for owner-occupiers and the fall in interest rates enables owner occupation to be cashflow positive with mortgage interest rates below property yields. "It beats renting."

Properties in the campaign include a 7339sq m, large format warehouse at 262 Ti Rakau Drive, East Tamaki, previously tenanted by Bunnings Warehouse.

The fully sprinklered warehouse on a 26,286sq m site was purpose-built in 1995 and has a stud of about 6.35m at the knee rising to 8.3m at the apex, a big canopy area, a substantial 3200sq m secure yard and 198 on-site car parks.

Ong, who is selling the property by auction on February 23 with colleagues Jillaine Murray and Hayden Bryant, says the owner is motivated and has made it clear the property must be sold.

"It is an exceptional opportunity to buy a large prime property that is suitable for a number of uses because of its favourable Business 5 zoning, allowing light to medium industry, offices and a limited range of retailing. Surrounding development is mainly larger-scale manufacturing and logistics/distribution businesses occupying big sites."

The property is a combination of two lots and has dual frontage to Ti Rakau Drive and Burswood Drive, with the building sitting on the northwestern corner of the site.

Within the building there is 245sq m air-conditioned mezzanine office space finished to a modern standard, 243sq m of mezzanine storage, roller shutter doors at the eastern and western ends giving complete drive-through and a nursery area with translucent roofing and a partially open rooftop.

Ong says the property is located on a major urban highway, linking several key specialty and bulk retail shopping centres. "The area is regarded as sound with ongoing growth opportunities."

Further north, a 1026sq m vacant and well presented warehouse and office at 8 Hill St, Onehunga, is being sold by auction on February 23.

Broker Jillaine Murray, who is marketing the stand-alone freehold property with Dominic Ong and Mike Jensen, says the medium-stud, two-bay warehouse, with front and first-floor offices and a secure sealed yard on a 1313sq m site was built about 1970.

"It is in a well-established industrial area surrounded by mainly small to medium-sized industrial premises interspersed with low-rise office buildings. Onehunga has about 1000 commercial and industrial businesses in the immediate area."

Murray says the property's appeal is its mixed-use zoning and affordability for an owner of a light industrial businesses wanting to expand or move to a new location with good road links to the airport or city.

Under the Auckland City Council's District Plan the zone is designed to encourage warehousing, industrial business that is not noxious, showrooms and limited retailing.

In Hamilton, Karl van Gisbergen and Russell Smith are selling a 1694sq m clear-span warehouse on a 5945sq m site with designs in place to add an additional 700sq m if required.

The property is near Hamilton Airport at 126 Boyd Rd, Rukuhia, and it has a fully sealed yard with vehicle access around and through the building. The building has 1539sq m of warehouse, 131sq m of air-conditioned office and boardroom space built in 2003 and 25sq m of mezzanine storage.

"This is a well-built property and its central location to Hamilton, Te Awamutu, Cambridge and Morrinsville will suit transport, distribution, manufacturing or airport-related businesses that don't need to be city-based.

"They can take advantage of overheads that are lower than in the city. The absentee vendor wants the property sold so he can pursue his interests overseas."

It is on the southern side of Boyd Rd on the western side of Hamilton Airport, with good access to SH3, the main southern route into Hamilton city, and nearby businesses include aircraft maintenance, storage, flight training and engineering companies.

Within Hamilton city, van Gisbergen and Smith have a 300sq m unit for sale. Situated at 12 Euclid Avenue, Te Rapa, the building has 243sq m of warehouse/workshop, 57sq m of air-conditioned office space, roller door access at the front and rear, and more than 100sq m of rear yard.

Smith says Euclid Ave has a number of owner-occupier businesses involved in the manufacturing, engineering, automotive, distribution and warehousing sectors.

"We expect the property to be snapped up at auction on March 3 as vacant buildings are [rare] in this area of Te Rapa and are well sought after."

On the North Shore, sales brokers Brian Paulin and Andrew Bartley are marketing a two-storey property designed and built for BNZ in 1998. After 12 years at 2A William Pickering Drive, Albany, the bank has moved to other premises and the building is now for sale for the first time.

Paulin says the property offers a buyer about 960sq m of office space, 39 car parks with the possibility of creating more, an existing fitout and extensive exposure to Upper Harbour Drive.

"A new buyer could customise the fitout at little cost to suit their business. A fitness centre, child care centre, restaurant, church, offices are viable options for the property. Its position in the heart of the North Harbour business estate makes it a great addition to any asset portfolio."

Bartley says the building shares a 9006sq m stratum in freehold site with four other buildings housing professional businesses. "The well-maintained property is at the southern end of the site and sits on its own surrounded by extensive landscaping."

Another piece of North Harbour industrial estate is being offered by brokers Simon Farland, Kim Fisher and Mike Page, who are marketing an industrial unit at 220 Bush Rd for auction on February 23.

The 614sq m clear-span warehouse/office unit has 12 on-site car parks and sits in a spacious rear development and has good exposure to Bush Rd. Farland says the building has a functional rectangular shape with no wasted space.

"There is a racking, a mezzanine system in the back of the warehouse and two levels of data cabled office floors, giving a new owner plenty of options. It has a layout that can easily be split for dual tenancies. Indicative market rent is $89,000 a year net."