On the market for the first time since being purpose-built 15 years ago, a large logistics facility at 25 Ha Crescent in Auckland’s Wiri industrial precinct has become available for lease.
The facility, which is within the Business – Heavy Industry Zone, has been built to cater to the needs of large format distributors.
The 16,592sq m high clearance warehouse with associated 400sq m of office space has a high profile Roscommon Rd frontage but provides excellent access connecting Ha Crescent with easy drive-in/drive-out truck movement to the site.
Situated nearby the Southern Motorway and South Western Motorway, these main arterials provide excellent access to the South, North and West of Auckland City, with Wiri Inland Port, run by Port of Auckland, also located minutes away.
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While this existing building has a short-term tenancy, it will become available from October 2023.
Paddy Callesen, Director, Industrial at Savills and the agent marketing the property, sold this building when it was built in 2006 to an offshore owner who has asked Savills to find a tenant at the end of the existing tenancy.
Callesen says, “With a 9m to 10.5m clearance, dual access, sprinkler systems, low office ratio and Roscommon Rd profile this 15-year-old building is as good as new but an incoming tenant will be able to lease at a discount to the new build rents currently being asked in the market place.”
Savills Associate Director, Industrial Sales & Leasing and co-agent, Tom Cooper says, “With close to zero warehouse vacancy in the Auckland industrial market, there is pent up demand exiting high clearance warehousing in this Wiri location.
“An existing build as opposed to a spec build provides a tenancy certainty on timing of delivery – plus they can walk into the building and see exactly what they will be leasing,” Cooper concludes.
As result of these extraordinarily low vacancy rates, Savills says it has seen a flurry of new construction where new build benchmark rentals have been driven by rapidly rising construction costs and high historical land values.
What has emerged is an elevated level of new “economic rents” being substantially higher than rentals for existing buildings. It is thought these new benchmark rents will either drive current rents higher or create a two-tier market of new vs existing stock
Due to the states of flux capital markets generally seem to be currently experiencing and rapidly rising interest rates causing investor inaction as they wait for capitalisation rates certainty and a peak on interest rate.
Resilience, however, appears strong in the leasing market for high clearance industrial warehouses with a shortage supply driven in part by much-discussed supply line issues and the fact that development in the sector ground to a halt during the COVID lockdown period.
- Article supplied by Savills
