Top-class design certain to lure industrial tenants

9:14 AM Saturday August 23, 2014 Colin Taylor

Artist's impression of new industrial building to be constructed at 17 Levene Place, Mt Wellington.

An industrial building to go up on one of the last large undeveloped industrial sites in Mt Wellington is expected to be finished by March.

Construction is about to start on the 2700sq m A-grade warehouse and office building on a 4000sq m site at 17 Levene Place.

"This property will offer tenants a modern, high-specification facility in a central location," says Brad Johnston, industrial broker with Colliers International, who is marketing space to lease with colleague Hamish West on behalf of developer Kip Kempthorne.

"It is one of only a handful of significant new industrial developments being offered for lease in Mt Wellington," Johnston says. "This new building will combine the highest standards of design and construction, offering the occupier an excellent visual presence, with the benefits of a Mt Wellington location."

West says only a few new industrial buildings of this size and quality have been offered for lease in Mt Wellington in recent times so the property is an important development for the central Auckland industrial market. "The building is a product of increasing demand for premium new industrial space and locations close to the CBD with excellent transport access."

"There is no other land in Mt Wellington currently on the market in this size bracket, reducing the likelihood of further new building projects getting under way in the near future. For a tenant looking for a new A-grade facility in the central Auckland industrial area, this development is a very attractive proposition."

Johnston says the current shortage of new A-grade stock in the area, is expected to attract prospective clients to the developer's "spec-build" project. "Premium industrial accommodation is hard to get at the moment, especially in Mt Wellington, and given the very low availability of space in the area we expect strong interest in the leasing of this building."

Colliers International's latest survey shows that overall industrial vacancy in Mt Wellington is a low 3.2 per cent but for prime (A-grade) properties, the vacancy rate is a mere 0.2 per cent.

"With vacancy rates so low, the new building represents a very good opportunity for an expanding business which needs to lease a new facility within the next year in a central Auckland location," West says.

The developer is taking care to design a facility that will suit a range of occupiers, he says. "When planning spec-builds, every eventuality has to be anticipated and all bases covered in terms of occupier requirements, such as providing maximum floor load capabilities and maximum stud heights. This building will tick all those boxes."

The building will encompass 2100sq m of warehouse space with an 8m stud, 440sq m of office space, a 200sq m canopy area and 54 car parks.

The office to warehouse ratio will be low and the building will provide a well-designed, pleasant working environment, Johnston says.

"As Auckland's original industrial area, many of the existing facilities in Mt Wellington are older B-grade and C-grade stock so businesses wishing to relocate to new, modern premises often have to look further afield. This new development will offer high-spec industrial accommodation of a standard not often seen in the central industrial area of Mt Wellington and Penrose."

West says flexibility will be available if the incoming tenant wishes to have input into details such as the internal layout, while the property as a whole will provide excellent access and ample room for truck movement.

"We expect to receive interest from a variety of occupiers which require a central location and modern facilities."

The site is within the Mt Wellington industrial precinct at the end of a cul-de-sac which has a high-quality mix of tenants.

Design covenants on Levene Place ensure the building will impress visiting customers.

"For a company which aims to project a high-quality brand image to clients, this building and location are an ideal proposition," Johnston says.

West says Mt Wellington is a central industrial location and has the benefit of being roughly mid-way between the Auckland CBD and Auckland Airport, both of which are 12km from the property.

"The suburb has long been considered the most central of all the Auckland industrial locations, and it continues to be the home base of choice for many of New Zealand's most well-known and established companies."