A high-end industrial facility in the West Auckland suburb of Hobsonville that will soon be tenanted by power tools giant Makita has been sold to a private investor.
Colliers brokered the transaction for the complex, which will see Makita consolidate their operations and distribution capabilities under one roof. They currently occupy a premises nearby but will move in the coming months.
Makita’s 14,523sq m facility is part of a multi-building development at 10 Te Ahurea Street that has been delivered by Waide Construction.
Flex Fitness gym is set to begin a 10-year lease in one of the other buildings, while two office and warehouse facilities are available for lease.
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One spans approximately 3,500sq m and the other 3,180sq m with both offering appealing warehouse to office ratios.
Colliers industrial experts Nelson Raines and Greg Goldfinch brokered the $51.25 million deal to sell the new Makita premises.
Charlie Waide, Managing Director of Waide Construction, says Hobsonville continues to hold appeal for industrial and commercial operators.
“The wider West Auckland area provides exciting development potential, particularly for existing businesses looking to grow their presence. The development that will be anchored by Makita is a major addition to Hobsonville’s established industrial hub.”
Neighbouring occupiers to Makita’s new facility include Bidfood Auckland North and Mainfreight, while Waide are also constructing data centres in the area.
Raines, General Manager at Colliers West Auckland, says the ongoing growth of the north-west industrial corridor continues to drive activity and attract high-profile tenants.
“Demand remains strong among investors for A-grade industrial assets across the area given the underlying investment fundamentals that industrial property provides,” Raines says.
“With constrained industrial land supply across the North Shore, we have seen a shift among occupiers seeking space in West Auckland where they are able to expand their footprint.”
Looking at the broader industrial property market across Auckland, recent research from Colliers notes there has been a slight uptick in overall vacancy to 2.8 per cent.
While there has been an increase, this figure remains low by historical averages and is favourable compared to international standards.
Goldfinch, National Director of Industrial at Colliers, says the increase has been driven by the cumulative impact of softer economic conditions over the past three years, alongside a lift in new supply.
“The war in the Middle East and its flow-on economic impacts are dampening global industrial activity and therefore industrial property demand. New Zealand has so far been resilient to this shock, meaning that Auckland’s industrial market has not yet been severely affected,” Goldfinch says.
“The lift in prime vacancy, which remains low at 2.3 per cent, largely reflects new, high-quality space coming to market that is still being absorbed, providing occupiers with greater choice at the top end.
“Over the medium term, demand is expected to remain well supported, particularly for prime facilities aligned with modern logistics requirements. The Auckland industrial market remains resilient and there is good capital flow for A-grade offerings, although investment opportunities are in short supply with limited available stock, which is underpinning strong asset values.”
- Supplied by Colliers
