Low vacancy rates and high demand for industrial premises in Porirua are driving buyer appetites for a well-located industrial property with triple street frontage.
An industrial property with three frontages in the high-growth Porirua business environment is generating broad market interest as limited new building activity feeds into historically low vacancy levels and strong competition for space.
The single-level brick building on 732sq m at 6 Prosser Street is in a prime position on the busy arterial route linking the Elsdon industrial precinct to Porirua’s Central Business District (CBD).
Bayleys salesperson Simon Butler says the property is offered to the market at a time of extremely high demand for industrial property, particularly assets with development upside and value capture potential.
“A persistent shortage of appropriately-zoned land has seen industrial vacancies hit historically low levels, particularly in established precincts like Porirua, which features good access to State Highway 1, Wellington’s CBD and the new Transmission Gully route.
“Vacancies like the subject property allow operators currently renting to transition into ownership, moving away from the highly competitive leasing market, which has similarly seen rental rates escalate to record highs recently.
“There remains a high degree of interest in properties with flexible use options from a spectrum of purchasers. At the same time, developers will look to opportunities presented by retrofitting older assets as a source of value.”
Butler is marketing the property for sale by tender, closing at 4:00 pm on Wednesday, 25th October 2023 (unless sold prior).
The 1960s property features a 350sq m (more or less) floor area of open-plan configuration, comprising a front-of-house showroom, amenities and a storage/workshop at the rear.
The large showroom has lofted ceilings and periodic timber flooring, with amenities including a dual kitchen and bathroom facilities.
The rear storage area is accessed through a functional roller door via Gluepot Lane and features three car parks on the western boundary.
It has been leased as a retail commercial premises to international charity and social services organisation, the Salvation Army, since 2013 and will be vacant upon possession.
Butler says the property enjoys an excellent profile to the busy arterial route of lower Prosser Street and vehicle access on three sides, including the rear service lane.
“Triple street frontage onto a busy thoroughfare with high exposure to passing vehicle traffic provides an opportunity for investors to undertake add-value works that maximise the locational fundamentals.
“The property is zoned Industrial, with a maximum allowable build height of 10 metres, permitting a new owner to leverage development controls.
“At the same time, investors with an eye to the future could capitalise on strong competition for space - benefitting from the growth in average rental rates - to collect income whilst plans for add-value works are put into place,” he says.
The property is currently under-rented, with provisional estimates forecasting a market return of $40,093 net per annum plus GST.
Butler says the location is superb, with a new owner standing to benefit from economic activity driven by regional population growth and a move north from Wellington’s CBD.
“Increasingly, businesses look to central locations like Porirua, which is progressing with various infrastructural upgrades to accommodate a burgeoning residential population.
“The completion of the Transmission Gully has added value for businesses in the area, with port and streamlined road access a buoy for logistics providers.
“This has resulted in heightened interest amongst developers, investors and owner-occupiers for like properties in the immediate vicinity, with demand anchored by a solid location and broad-based upside for a spectrum of commercial use options,” he says.