Seaview in Lower Hutt is one of the tightest and best-performing precincts with industrial assets highly sought-after by investors, and tenant demand creating exceedingly low vacancy, which agents say underpins the value of the fully-leased warehouse property at 10-12 Meachen Street.
Occupied for more than a decade by well-established 3PL provider PE Logistics, the functional freehold property on a 1,741sqm flat site comprises a modern high-stud warehouse with triple roller door access, contemporary offices, and amenities over two levels, seven car parks and drive-through capability to a rear service lane.
The original building was constructed in the early-1970s, with the rear half of the warehouse added in 1998, a first-floor office extension built in 2003, and a new ColorSteel iron roof installed as part of a significant refurbishment.
A 2023 initial evaluation procedure (IEP) analysis found the property to be at 60 percent new building standard.
The Special Business Activity-zoned property is being marketed by Ethan Hourigan and Simon Butler, Bayleys Wellington Commercial, with tenders closing Wednesday 17th May.
“Seaview is Wellington's premier logistics precinct, with strong representation from major national and multinational companies looking for operational efficiencies,” said Hourigan.
“There’s no new development land available in Seaview which puts pressure on existing stock to meet demand from owner-occupiers and investors hungry to secure a presence in the precinct.
“A passive investor can be encouraged by this supply-demand pinch point as it demonstrates market confidence and provides surety for the future.”
Hourigan said the property clearly suits the tenant PE Logistics, as evidenced by the firm exercising a right of renewal on its lease ahead of time.
“PE Logistics has a 25-year history as a major player in Wellington’s 3PL logistics environment, and this property gives them convenient access onto Port Road which connects to main thoroughfares via the Seaview roundabout allowing them to streamline distribution operations.
“The lease has renewals and a final expiry of June 2032, returns annual net income of $180,000 plus GST, and the full net lease covers all outgoing increases.
“Investors will also be encouraged by the inbuilt rental growth via two-yearly reviews to market, as demand for properties of like this shows no sign of abating and industrial rents across the region are mirroring national trends and continuing to rise.”
Given Seaview’s pedigree as the Wellington region’s prime trucking and logistics hub, the size and functionality of the Meachen Street property will give it longevity, according to Butler.
“The high-stud 1,451sqm warehousing is adaptable and versatile, and there’s a good ratio of office to warehouse which is attractive for occupiers.
“The drive-through capability and roller door access gives real efficiencies for loading and devanning, and makes the property suitable for a variety of industrial use.”
The Seaview industrial area has experienced sustained growth over the past decade, with sub-1-percent vacancy reflective of the appeal and demand from occupiers.