Hamilton development opportunity
The 1250sq m property at 205b Ellis St, Frankton. Photo / Supplied
A significant land holding in Hamilton’s central industrial precinct is for sale with vacant possession.
The 1.12ha freehold property, at 205b Ellis St, Frankton, encompasses 1250sq m of buildings including a modern high-stud warehouse.
Alex ten Hove and Mike Swanson of Bayleys are selling the property by a tender process closing at 4pm on Thursday April 5.
The property will suit not only owner-occupiers but also investors and developers looking to capitalise on the city’s booming industrial property market, says ten Hove.
“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.”
The property comprises 207sq m of office space, a 37.95sq m mezzanine lunchroom, a 115.17sq m mezzanine space for open storage, a 19sq m store, a 905sq m workshop/warehouse and a 125.28sq m secondary building workshop.
It has been used for recycling heavy products and has a fully concreted yard, storage areas and a weigh station.
The Hamilton property includes a modern high-stud warehouse. Photo / Supplied
“This is a prime opportunity in Hamilton’s central industrial area,” says ten Hove.
“Heightening the potential for development activity is the property’s closeness to Hamilton CBD and 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,” says ten Hove.
He believes 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 foothold in popular locations.
“The most popular 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,” says Swanson.
“With industrial vacancies tight, rents for better quality space in Hamilton are expected to show further upside over the next 12 months.”