With Drury in South Auckland expanding rapidly and with significant commercial, industrial and residential development still in the pipeline, astute businesses are recognising the locational advantages the catchment can offer leading to low vacancy levels for any available stock in the market.
The owner-occupier of the adjacent freehold industrial properties at 40 and 48 Firth Street, Drury has committed to new and larger premises for its import, export, storage and distribution businesses in Stevenson’s new Drury South Crossing precinct 6km away, meaning both of the Firth Street buildings are now for sale.
James Hill, Tim Koning and James Valintine of Bayleys are marketing the properties by deadline private treaty with offers to be received by Thursday 29th June, unless sold prior.
Zoned Business-Light Industry, and with efficient warehouse-office ratios, both properties would suit distribution, storage, logistics, and manufacturing businesses and they can be purchased individually, or together, which would provide good scale now and for future growth.
At 40 Firth Street, the vacant industrial warehouse and office property would make an ideal head office for a progressive business requiring functional, well-presented space in a strategic location.
It has around 1,540sqm floor area and sits on a 3,034sqm fenced site, with a set-up suitable for a wide range of business uses.
The high-stud warehousing – rising to 7m at the apex – has three roller doors with drive-through capability, and refurbished office/amenities over two floors with internal windows overlooking the warehouse.
The wrap-around yard includes a canopy above the side roller door, allowing for weather-friendly goods and container drops, and there is also a double-door storage shed located at the rear of the site.
Meanwhile, the property at 48 Firth Street has a floor area of 765sqm on a 1,624sqm site and comprises a functional warehouse with four roller doors, freshly refurbished office/amenities over two floors, and a practical drive-around yard with good container storage and trucking accessibility.
Around 200sqm of space within this property is leased to Orica New Zealand Limited, on a three-year lease with a three-year right of renewal and a final expiry end of February 2028.
This provides a net holding income of $54,000 per annum and for an incoming owner-occupier, could make the value equation more favourable from a lending perspective.
Hill said the properties are being sold to smooth the way for the owner to transition to its new-build premises, creating an opportunity for owner-occupiers or investors to get a healthy foothold in one of the fastest growing areas of Auckland.
“There’s no denying that Drury, Takanini and Papakura are taking off with exponential investment being made in infrastructure and via development across all of the property sectors,” he said.
“The Firth Street properties will give buyers a chance to be part of Drury’s growth, and whether that’s acquiring one or both of these warehouses, the location speaks for itself.”
Hill said there are proactive owner-occupiers in the market to acquire their own premises currently, with lenders looking favourably on well-capitalised businesses.
“An owner-occupier could buy one of the properties for their own use, acquire both properties and run operations across the two sites, or buy both and occupy one while leasing out the other.
“A pure investor will take confidence from the current low vacancy in the industrial market and if the enquiry our leasing team is anything to go by, there’s a ready and willing pool of occupiers looking for space right now.”
Projections are that Drury’s population will grow by more than 100,000 over 30 years, and along with confirmed projects by big entities like Kiwi Property and Oyster Capital a sign that the area is striding ahead, there are roading and transport initiatives on the boil too.
“Firth Street will become a main arterial linking Drury Central and Drury West, and there are plans for a new train station at Drury to address growing and forecast demand,” said Hill.
“The properties for sale are less than 1km from State Highway 1 motorway on-ramps with approximate drive-times of 30 minutes to Auckland Airport, 35 minutes to Auckland CBD, and under one hour to Hamilton, so are well-positioned within the economic golden triangle for operational efficiencies.”