Industrial Property an Opportunity for Developers
A significant land holding in Hamilton’s central industrial precinct has been placed on the market for sale.
The 1.12ha freehold property, at 205b Ellis Street, Frankton, features 1250sq m of buildings, including a modern high stud warehouse. It is being offered as a vacant possession.
Bayleys sales agent Alex ten Hove says: “The property will suit not only owner-occupiers but also investors and developers looking to capitalise on the city’s booming industrial property market.
“Vacancy remains extremely low across all of Hamilton’s major industrial areas. Not surprisingly, significant land holdings in the area are hard to come by under such tight conditions.
“Even rarer are vacant properties on flat, under-developed land.”
Mr ten Hove and Bayleys sales agent Mike Swanson are marketing 205b Ellis Street for sale by way of tender, closing at 4pm on Thursday, April 5.
The property comprises 207sq m of office space, a 37.95sq m mezzanine lunchroom, a 115.17 mezzanine space for open storage, a 19sq m store, a 905sq m workshop/warehouse and a 125.28sq m secondary building workshop.
It had been used for recycling heavy products and has a fully concreted yard, storage areas and a weigh station.
Mr ten Hove says: “This is a prime opportunity in Hamilton’s central industrial area. Heightening the potential for development activity is the property’s proximity not only to Hamilton CBD but access points to State Highway 1 and KiwiRail’s main trunk railway line.”
Neighbouring tenants are a mixture of established logistics, manufacturing and storage businesses, including Mainline Sheetmetals, PROFORM Plastics, Weldwell NZ, Fletcher Easysteel, Complete Engineering and Hydraulics and Fastway Couriers.
Mr Ten Hove says potential buyers should have little difficulty leasing the property, which is zoned Industrial 7A and has a Capital Value of $2,820,000.
“Well-located industrial property will continue to be sought-after. Any properties that are centrally-located and which tap into transport arterials to optimise efficiencies will be hotly contested in the leasing market,” he says.
“The squeeze is on existing industrial property stock. Traditional industrial areas are experiencing unprecedented low vacancy rates making it hard for businesses to get a foot hold in popular locations.
“The most sought-after properties are prime assets that have long weighted average lease terms with strong covenants and are in prominent locations.
“But with such opportunities becoming harder to find or obtain, investors are increasingly pursuing well-located industrial properties that have vacant possession or short-term lease expiry profiles as they represent an opportunity to add value.”
Population growth continues to underpin Hamilton’s commercial property market, with the industrial market the major beneficiary so far. Demand for industrial space, from all buyer groups and tenants, is strong, driven by limited supply.
With current industrial vacancies tight, rents for better quality space in Hamilton are expected to show further upside over the next 12 months.