Set sail for Wiri warehousing

A 1.5HA industrial park comprising eight warehouse and office buildings is planned for McLaughlins Rd, off Roscommon Rd, in Wiri.

Developer Hughes & Tuke has already commenced earthworks on the greenfields site, purchased two months ago.

Construction work on building units ranging from 840 to 1547sq m starts next month and is scheduled for completion in the third quarter of next year.

The buildings are pitched at the distribution, light engineering, light manufacturing, export and import companies.

Colliers International industrial brokers Greg Goldfinch and Stephen Murdoch say they have been approached by numerous businesses wanting high-quality larger units in Wiri. There is a gap in the market for a development close to essential services with warehouse space averaging 1000sq m, says Goldfinch.

Clear-span warehousing with a 7m stud typifies the big box design, says Murdoch. Designed by Darby & Associates, with an emphasis on versatility, the units can be tailored to occupiers' specific needs.

Modern open-plan office space over two levels is included in each unit. Tenants can choose the amount of office space, but each unit has been designed with an allocation of about 22 per cent, says Murdoch.

Generous carparking has been provided on the basis that the warehouse space will be one-third manufacturing (one carpark per 45sq m) and two-thirds industrial (one carpark per 100sq m), giving each unit an average of 19 spaces.

Goldfinch says an unusual feature of the development is that additional car or container parking space can be bought or leased.

The perimeter of the site will be fenced with controlled entry and exit gates.

Hughes & Tuke is selling or leasing the McLaughlins Rd units, which are priced from $1.006 million or start at $93,000 a year rental.

Project manager Tom Tuke says demand for warehouse/office units averaging about 1000sq m and the construction of a new inland port near Wiri Station Rd were the catalyst for buying the land at McLaughlins Rd.

Ports of Auckland is setting up a rail shuttle service with Toll for the new inland port that will be operating by the middle of next year.

Ports chief executive Geoff Vazey says the rail service for the Wiri venture is one of several projects under way that are designed ensure the seaport can offer an efficient rail service.

Auckland Airport is 15 minutes from McLaughlins Rd and the planned extension of SH20 to the Southern Motorway also adds to its appeal. 

A decade ago, Wiri industrial land sold for as little as $10 per sq m if a buyer could be found. Last year, road frontage sites at Southpark industrial subdivision on Roscommon Rd sold for $100 per sq m. If they were available now they would sell for $160 to $180 per sq m.

Wiri has been recognised by multinational and major New Zealand manufacturing, distribution and logistic companies as a cost-effective and developing industrial area.

These companies include NZ Fire & Safety and Packaging House (both owned by listed Australian company Wesfarmers), Kmart, The Warehouse and Nestle.

Many Wiri-based companies have clustered to create efficient operations that are close to the airport, the new inland port and to the motorways.

Goldfinch says Wiri is becoming home to a diverse range of businesses with modern premises, plant and equipment.

They have access to essential services, and often the freedom to expand when required.

The area has developed so related industries are close by, and local service companies have set up to meet industry needs.

The cost of new premises for these businesses is offset by the cheaper land, gains in efficiency, higher studs, smaller floorplates and room for expansion.

Business confidence among Manukau firms is high, according to the Institute of Economic Research, although some companies expect business conditions to deteriorate in the next six months.

Manukau's level of general business confidence is markedly higher than the national average.

Economic growth in Manukau has been nearly 4 per cent, above the national average of 3.6 per cent in the past year.

Employment grew nearly 5 per cent last year and the fastest growth was recorded in business services, construction, transport and storage industries.