Fully leased North Harbour industrial

The property at 11 William Pickering Drive has an attractively landscaped building entrance. Photo / Supplied

A large and standalone industrial complex is for sale in William Pickering Drive in Auckland's North Harbour Industrial Estate at a time when vacancy levels are at an all-time low in the Albany Basin.

Featured in Bayleys' latest Total Property portfolio, the fully-leased property is being marketed by Matt Mimmack and Laurie Burt of Bayleys North Shore Commercial, via a deadline private treaty sale closing at 4pm, May 16, unless sold earlier.

Leased to Landscape Solutions Pty Ltd, it encompasses a 1250sq m industrial building on a 3158sq m site at 11 William Pickering Drive, one of the main thoroughfares in the North Harbour Industrial Estate.

It has an 800 sq m warehouse with a medium stud height of around 6m. There is dual roller door access and mezzanines at both ends of the warehouse with offices and a lunchroom below as well as toilet and showering facilities.

The premises also contain 450sq m of single storey, air-conditioned offices and amenities that are part of an attractively landscaped entrance to the building and which allow for a sub-letting tenancy to Ventia Ltd. Off street parking for the complex is also located on the William Pickering Drive frontage.

"The offices have partitioning throughout with a central garden area bringing natural light into this part of the building and making for a pleasant working environment," says Mimmack.

There is a large yard area at the rear of the site accessed via a right-of-way off Te Kea Place which contains container drop-off areas as well as a significant amount of parking used for the work vehicles of tenant Landscape Solutions.

Established in 1993, it is one of Australasia's largest landscaping companies providing a range of contracting services including grounds maintenance, turf design and maintenance plus irrigation. It has a large-scale contract with Auckland Council.

Landscape Solutions has a five-year lease from June 2017 with three five-year rights of renewal which if exercised would take its tenure through until mid-2037.

"The substantial secured yard and parking area at the rear of the property is ideally suited to the current tenant's requirements," says Burt. "However, it does mean the site has a relatively low building coverage which could offer the next owner development options further down the track.

"At the moment the property is generating net annual rental income of $225,000 plus GST with the likelihood of a further rent increase shortly after settlement with the next rent review scheduled for June this year."

The property is on the eastern side of William Pickering Drive, towards the southern end of the road which links Rosedale and Bush Rds. It is also has good connectivity with nearby motorway linkages north, south and west.

"The property is well positioned in one of Auckland's premium industrial locations, where properties are very tightly held and a number of high calibre tenants and owner occupiers are located so it would be a good addition to any portfolio," says Mimmack.

"Surrounding buildings comprise a variety of high quality warehouse and office developments together with supporting retail amenities, services and showrooms."

The property is being offered for sale at a time when industrial occupancy levels are at a record high. Bayleys Research's recently completed annual accommodation survey of Auckland's main industrial precincts shows the vacancy rate in the Albany Basin stands at a negligible 1.7 per cent - down from 2.1 per cent last year.

"The supply pressure that the industrial leasing market has been under for an extended period of time is being reflected in a significant upward movement in rent rates," says Bayleys Research manager Ian Little.