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; and Janet Marshall and Euan Stratton of Colliers International North Shore; are marketing 120 Wairau Rd for sale by auction at 11am on Wednesday July 3 at the Colliers Takapuna office Level 1, 129 Hurstmere Rd. It will not be sold earlier.
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 promise good potential for continued growth in rental rates and values for properties in the Wairau Valley area.”
Marshall says the site provides ample on-site parking for 17 cars, a fully secured side yard, and the opportunity to maximise exposure with signage.
“Tile Warehouse has occupied the property since 1999 and has recently signed on for a further six-year lease, paying $179,327 plus GST in net annual rent.
“Opportunities to acquire investment stock of this calibre are extremely rare, particularly on Wairau Rd.”
Stratton says the property is being offered to the market at a time when vacancy rates remain very low.
“The latest Colliers International research survey shows industrial vacancy on the North Shore remains below 2 per cent.
“The North Shore’s overall industrial vacancy rate was 1.9 per cent as at February 2019, little changed from 1.8 per cent a year earlier.
“The Wairau Valley industrial vacancy rate sits at 2.2 per cent – ever so slightly higher than the average, but still stubbornly low despite some new supply coming on board.
“This shows that tenant demand for quality properties in the area remains high.”
“The tenant is a well-established national brand with a superb reputation within the commercial and residential property sectors.