Wairau Valley North Shore investment property

The Tile Warehouse has been a tenant at 120 Wairau Rd for 24 years. Photo / Supplied

A substantial North Shore showroom, office and warehouse in the Wairau Valley, tenanted by a national tile company, is up for auction at a time when vacancy levels in the industrial precinct are at an all-time low.

The Tile Warehouse, a well-known national brand for 30 years, has been at the 860sq m industrial/retail building on a 1525sq m freehold site for 24 years and has just signed a new six-year lease, generating net annual rent of $163,597 for the premises and $15,730 for 17 car parks; to give combined total annual rent of $179,327. Rental growth is generated through two-yearly rent reviews to market rates.

"Properties like this don't come on the market very often," says Alex Strever of Bayleys North Shore who, with colleague Michael Nees, is marketing 120 Wairau Rd for sale by auction at 11am on Wednesday July 3.

Featured in Bayleys' latest Total Property portfolio magazine, the single-storey showroom and warehouse, with a mezzanine floor at the front of the building, has an Auckland Council Light Industry zoning.

"The industrial building has 25m of road frontage to Wairau Rd which is one of the North Shore's busiest roads carrying over 30,000 vehicles a day," Strever says.

When erected, the warehouse was constructed with a steel portal frame and masonry shear walls. It is on concrete foundations and has a concrete floor. The mezzanine area is steel framed with timber framed walls and flooring within and the building is roofed with long run steel roofing supported on timber purlins to the steel portal frames end walls.

Nees says the Tile Warehouse is the only tenant and the building's position, exposure and versatile nature make it suitable to a wide range of users.

"The site has easy motorway access, being about 200m from the Tristram Avenue Northern Motorway interchange on to State Highway 1," he says.

Strever says industrial vacancies in Auckland are at historical lows, tenant demand is strong and premises of this nature are 'highly prized' by investors and owner occupiers.

He says neighbouring popular brands include BP, Supercheap Auto, City Nissan, Tristram European, Cash Converters, Office Max, Mitre 10 and Bunnings.

"The strength of the area is its location and range of prominent businesses which have established in the precinct resulting in Wairau Valley becoming a blue chip locality for owner-occupiers and tenants.

"A significant lack of development sites in the area means new supply is limited and continued demand from tenants and owner occupiers promises good potential for continued growth in rental rates and values for properties in the Wairau Valley area."