Two sites rare chance in greenfield shortage

With Auckland's supply of greenfield industrial land dwindling, two sizeable industrial properties in Swanson and Pukekohe have come to the market ideally positioned as brownfield redevelopment sites within established industrial precincts.

"This redevelopment land at 9 North Candia Rd in Swanson and 5 Crosbie Rd in Pukekohe represents an excellent opportunity, coming to the market at a time when industrial land is scarce," says Chris Harding, commercial sales and investments agent for Jones Lang LaSalle who, with colleague and industrial broker Edward Washer, is marketing the two sites separately for sale by tender closing at 4pm on November 29 on behalf of AML.

The North Candia Rd site covers an area of 1.7ha while Crosbie Rd encompasses 6676sq m.

"We are increasingly seeing a take-up of the remaining supply of previously undeveloped industrial sites across Auckland," Harding says. "This is causing land values to grow, meaning that brownfield sites are becoming the feasible redevelopment option in a lot of Auckland's established industrial suburbs."

Washer says it is getting more expensive to develop in the established industrial areas. "In Penrose we have seen land values move up 103 per cent in the past 10 years while Mt Wellington has seen values move up 80 per cent in the same period. The North Shore industrial area has experienced an increase of 104 per cent. Developers are now being forced to look even further afield, taking them to industrial areas further to the south and west of Auckland.

"With industrial rents remaining stable across the sector, this is giving developers who are in the market the confidence of rental income stability. Both prime and secondary yields are compressing so the option of moving further out of Auckland is a positive and feasible prospect. We are certainly anticipating a lot of interest in this land, from owner occupiers, developers and private investors."

Bob Officer, general manager of AML, says the sale of the North Candia Rd site in Swanson represents a great opportunity for a local business to secure a large undeveloped parcel suitable for a wide range of uses in that community.

"Equally, the release of our Pukekohe site at Crosbie Rd represents an excellent opportunity for a similar industry or service business in an area which is surrounded by service and food manufacturing operations."