Silverdale industrial land consented for business park
Elevated view of 1.3 ha block of industrial zoned land for sale at 2181 East Coast Rd, Silverdale.
A 1.3 hectare parcel of undeveloped industrial zoned land at Silverdale less than two kilometres from the State Highway One motorway interchange is up for sale.
Ranjan Unka and Rosemary Wakeman of Bayleys North Shore Commercial are marketing the site at 2181 East Coast Road via a tender campaign closing on November 6.
Unka says the current owners of the site, which also has an entrance at 81 Forge Rd, had comprehensive development plans drawn up and consented for a 28 unit commercial and light industrial business park on the land.
“A new owner could opt to run with these consented plans, which have materialised as the result of comprehensive research into future dynamics of the area, or they could capitalise on the potential to subdivide the land into smaller parcels that could be sold down or developed,” Unka says.
“Our vendors consulted a development company which confirmed the anecdotal demand for commercial or light industrial units in this location,” he says.
“Certainly the feedback we have had from prospective buyers is that a development such as the planned one – with Stage One being for trade units and the subsequent four stages designated for small to medium industrial units – would find traction in the current market.
“Alternatively, a new owner may also see value in creating fewer units with larger floor plates and there is also a gap in the market today for this option as well. We know of many existing Silverdale industrial tenants and owner occupiers looking for, but frustrated by, the lack of larger premises.”
Unka says there is also a lack of heavy industrial-zoned land in the Silverdale catchment area. “Proposed changes to the zoning of this site could be favourable for those businesses who are constrained by current bylaws,” he says.
The land is zoned Industrial under the current Rodney District Plan but it is zoned Heavy Industrial under the Proposed Auckland Unitary Plan.
Having dual access from East Coast Rd and Forge Rd would also allow for a “drive through” aspect for any future development.
“With many manufacturing and engineering businesses being forced out of Albany and Wairau industrial areas that are not conducive to heavier industrial activities due to noise rulings, we expect any development carried out on this East Coast Road land would have a strong pick-up from existing and proposed businesses,” Unka says.
Wakeman says evidence shows that businesses are migrating northwards due to a shortage of available commercial and industrial land closer to the Harbour Bridge. “With vacancy rates tight in the wider North Shore area and a scarcity of available stock for either lease or sale, developers and owner occupier are looking further north.
“Silverdale is no longer out in the back blocks as far as location is concerned,” says Wakeman.
“Improved infrastructure and substantial residential development is underpinning intensification in the wider Silverdale area which has been identified by Auckland City Council as a targeted growth area along with Warkworth, Whenuapai, Kumeu and Riverhead.
“If anyone wants affirmation that Silverdale is taking off, a quick trip to the area’s flagship Millwater residential development which is consolidating on more than 300 hectares of land will provide assurance that the area is one of the fastest growing in New Zealand.”
Wakeman says an example of transport infrastructure being introduced to support current and future housing projects is the well-used and busy council park and ride complex at 1 Hibiscus Coast Highway - not far from the East Coast Rd industrial site.
“The Proposed Auckland Unitary Plan also identifies the adjoining area of Dairy Flat as future urban for residential growth purposes,” he says.
The land for sale has good exposure to East Coast Rd, with a frontage around 100 metres and is also highly visible from the existing Silverdale Industrial Estate with occupiers including New Zealand Glass, Bunnings, Atlas Concrete and Placemakers.
The 2014 Bayleys Research industrial report states that the industrial sector is continuing to lead the charge in the commercial property market. It says the North Shore, Albany and Silverdale areas notably have minimal tenant vacancy, strong demand and a scarcity of investment properties.