A tenanted property in the Hamilton industrial hub of Te Rapa presents an ideal opportunity for novice investors to initiate themselves with the commercial property landscape, Bayleys salespeople say.
The unit titled warehouse spanning 367sqm (more or less) at 11 Northway Street in Northern Hamilton provides simple access to the city’s key trade districts and motorway interchanges in each direction.
Bayleys salesperson Alex ten Hove says the industrial sales sector had a stellar run through the pandemic, remaining resilient through recent market headwinds.
“Although yields have softened as the industrial sales sector levelled out in 2022 and 2023, supply remains critically tight with a limited number of new projects in the pipeline.
“This is exacerbated by an undersupply of live industrial-zoned land and the growing demands of record-high migration.
“At the same time, we have seen small business tenants searching for space, with owner occupancy a popular answer to current rental escalation.
“The subject property can support new investors to leverage current demand trends, given its flexible footprint, which lends itself to a variety of business uses and a strategic location providing convenience for occupiers,” he says.
ten Hove is marketing the property for sale by auction with Bayleys colleague Luke ten Hove on Thursday, 14th March 2024 (unless sold prior).
The modern industrial premises is comprised of a versatile mix of showroom, warehousing and office area spread across two levels.
The property generates a net annual income of $59,478 plus outgoings and GST.
Local roller bearing supplier Waikato Bearings, in operation since 1999, has exercised the first of three three-year renewal rights to January 2026.
“A robust, long-established tenant offers a demonstrated history of reliability, offering stability for investors. Similarly, future leasing fundamentals are sound, given the property naturally lends itself to a broad range of small business uses – and New Zealand is predominantly a small business economy.
“Convenience is key and this property delivers with onsite car parking for three vehicles - an amenity that adds value for tenants and their clients,” says Luke ten Hove.
Occupants of the surrounding area include construction equipment supplier Total Access Hamilton, local mechanic Te Rapa Automotive, pipeline and civil engineers Odlum Engineering and custom vehicle provider Wade Emergency Vehicle Division.
“Set to benefit from expansion, infrastructural upgrades and the strength of the Golden Triangle – the area between Auckland, Hamilton and Tauranga where 44 percent of the country’s population reside – Te Rapa and the wider Waikato region continue to attract business investment, with occupiers and businesses of all sizes increasingly exploring the area given a shortage of appropriate accommodation and rising rental rates in Auckland.
“More than 40 percent of the country’s total freight by tonnage moves within the Golen Triangle, a number set to increase as the nearby and newly opened Ruakura Superhub comes into its own.
“Demand dynamics have upped the ante on appetite for trades and services, and we expect to see a healthy level of interest in this asset thanks to its attractive blend of current income generation, future use prospects and strategic location,” he says.