SOLD under the hammer for $910,000 at a 5.76 percent yield Unit 4-55 Percy Cameron Street, Avalon

The Property

• 348sqm land
• Well-presented 283sqm unit-titled modern industrial unit
• Within the Avalon Business Park, built in 2018
• High-stud workshop, custom mezzanine, kitchenette and amenities
• Easy access on to motorway and arterials
• Vacant possession
• Potential gross rental of $64,000 + GST
• Zoned Avalon Business

Quick Look

• National Total Property marketing campaign – sold by auction
• Interest generated via Bayleys’ databases and Total Property magazine
• Six inspections by local buyers
• Three bidders in the auction room
• SOLD under the hammer for $910,000 at a 5.76 percent yield
• Purchased by a local owner-occupier

The Story

With industrial vacancy still exceedingly low across the Wellington region, and with rising rents contributing to a more-active owner-occupier market, this unit within the established Avalon Business Park in Lower Hutt attracted good enquiry recently.

The modern and extremely well-presented unit comprises a generous high-stud workshop with a custom mezzanine floor, kitchenette and amenities, located close to arterials giving excellent access onto SH2 for connection to Wellington, Porirua and Upper Hutt.

Some value shifts have been seen in the market recently, with higher interest rates and stricter lending thresholds from banks having an impact on sales’ prices.

Investors have been less active as the cost-return equation is not stacking up right now, and an influx of new-build industrial micro-units in the Lower Hutt area has created some disruption in the market with existing stock having to compete for buyer attention.

Marketed by Ethan, Oliver and Mark Hourigan of Bayleys Wellington Commercial, this Avalon industrial unit went to auction with several interested parties attending on the day.

Ethan Hourigan said when bidding in the room stalled, auctioneer George Yeoman managed to get the leading bid raised outside of the auction room before taking that bid back to the public floor and selling the property under the hammer.

Ethan said while the vendors of this quality unit in Avalon did not achieve the price they would have liked on the day, it was still a very good result in a more challenging market.

“The market is finding a new level, particularly for smaller industrial space.

“However, there is a shortage of quality stock in the Lower Hutt market, amplified by Greater Wellington Regional Council’s recent compulsory land acquisitions for Lower Hutt’s $700 million RiverLink development.

“This has displaced a number of businesses from established premises and the owner-occupier purchaser of the Avalon property was one such case in point.”

Vendor Comment

Sally and Ian Williamson of the well-established and respected canvas and PVC manufacturing company, Coverworks appointed Bayleys to sell their property based on track record and frank feedback.

Having met Mark Hourigan of Bayleys when he was selling another property within the Avalon Business Park, the Williamsons chose to list their property with him when they decided to change their business model.

“In order to downsize and relocate our business, we wanted to sell the Avalon property and we thought Mark had great experience and set realistic expectations,” said Sally.

“Bayleys explored all opportunities to get qualified buyers for the auction and gave us good feedback throughout the marketing campaign.

“Although the sale price on auction day wasn’t as high as we had hoped, we do understand and accept that the market has changed significantly and rapidly this year.”