One of the last remaining large vacant land holdings in the sought after East Tamaki industrial precinct is to be developed into a business park.
The 1.2526 hectare north facing, near flat site at 417 East Tamaki Rd, was purchased late last year by National Asset Group which has drawn up initial concept plans for the site encompassing 25 industrial units ranging from 104 sq m to 1000 sq m.
"While targeted primarily at smaller light industrial businesses, the development to be known as the 417 East Tamaki Business Park, will also include a childcare facility and one larger unit with showroom and office space on its road frontage," says Marty Roestenburg of Bayleys South Auckland who is marketing the development with colleague Mike Marinkovich,
The childcare facility on its own freehold road front title will house up to 100 children on 2000 sq m of land.
"Expressions of interest for this are being sought from established operators and investors," Roestenburg says.
Marinkovich says it is the first substantial development in East Tamaki to offer new industrial premises for sale since the Global Financial Crisis and is expected to attract interest from owner occupiers, investors and tenants.
The industrial units will be developed on the remainder of the site and are available for either purchase or lease, with preliminary asking prices starting at $370,000.
• Eight small light industrial units of 104 sq m including 20 sq m of mezzanine space, each with one car park.
• Five small light industrial units of 136 sq m including 30 sq m of mezzanine space, each with three car parks.
• Five small business or light industrial units of 205 sq m including 35 sq m of mezzanine space with front and back dual access, each with three to four car parks.
• Four medium sized business units of 356 sq m plus 30 sq m of canopy area and including 90 sq m of showroom and office space, each with three car parks.
• Two medium sized business units of 445 sq m plus 30 sq m of canopy and including 90 sq m of showroom and office, each with four car parks.
• One larger road front unit of 1000 sq m plus 80 sq m of canopy and including quality showroom and office accommodation plus 11 car parks.
The units have roller doors for warehouse access and stud heights of up to 8.4 metres. "There will be flexibility for early buyers to increase the size of units to suit their requirements, including combining some units," says Marinkovich.
"The units are predominantly targeted at the small business end of the market because that's where the biggest demand for premises in East Tamaki is at present and there's a huge supply shortage - particularly for tradespeople like electricians, plumbers and builders looking for a base to operate from with storage space for vehicles and equipment. The smaller units will also appeal to those after somewhere to store classic vehicles, motorhomes or boats.
"The design of the largest unit cleverly utilises the wide frontage the showroom enjoys to East Tamaki Rd and buyers should register early interest as there is only one of these available. It will appeal to a bigger business looking for a high profile position on a busy road in a sought after location."
He says East Tamaki Rd provides easy access to the State Highway One southern motorway either via Highbrook Drive or the East Tamaki Rd interchange at Otara. Ti Irirangi Drive, part of the eastern expressway, is close by and also provides a link to the southern motorway, Manukau and Wiri as well as Flatbush, Botany and Howick.
"The property is superbly located in terms of both its excellent transport connections and its access to substantial labour pools available from nearby suburbs extending from Pakuranga to Otara," says Marinkovich.
In its latest Auckland industrial overview, Bayleys Research reports leasing conditions in East Tamaki are the tightest they have been for over 20 years with little, if any, space available at the smaller 100 to 200 sq m end of the market.
National research manager Ian Little says East Tamaki's industrial vacancy rate has sat at below four per cent for the past two years and tenants are finding it hard to compete with owner occupiers who have the ability to spread their accommodation costs over a 10 to 15 year period. Many owner occupying businesses are taking advantage of historically low borrowing rates to debt fund the acquisition of premises at similar or lower cost to renting.
Roestenburg says industrial property is tightly held in East Tamaki with few modern buildings available for purchase and the 417 East Tamaki Business Park also represents a rare opportunity for add value investors to purchase a unit and lease it up.
"The extremely low vacancy rate means that tenant demand for quality premises is outstripping supply. This is likely to remain the case because there is also a very limited supply of land available for further industrial development in East Tamaki, with few remaining vacant large lots in particular.
"This puts landlords in a very strong position and means they should benefit from the rental growth that results from strong competition for premises."
National Asset Group will commence construction on the project shortly, with completion scheduled for early 2017. The family-based property development and investment company was founded by father and son Terry and Greg Large in the late 1990s and has been involved in a range of residential and commercial development projects in various parts of Auckland.
Roestenburg says the design and construction will provide clean, open space, with easy vehicle access, and will be in keeping with the quality, modern neighbouring buildings.
"We are expecting very strong interest in these units so buyers or tenants should inquire early to secure the best located or end units, or if they wish to increase the size of some units to suit their specific requirements."