The recently refurbished warehouse on 3,584sq m of freehold land at 3 Bancroft Crescent is strategically positioned proximate to State Highway 1 and 20 interchanges, and the Waterview connection.

Bayleys agent James Hill says Auckland’s industrial sector has remained well-insulated from broader market volatility, recording unprecedented rental growth despite economic challenges.

“Unrelenting occupancy demand has been exacerbated by the limited availability of generic industrial premises, particularly across the northwest - identified as a key growth region in Auckland Council’s Future Development Strategy.

“While demand is there, the pandemic, global volatility and tightening economic conditions have seen a slowdown in the speculative development of new industrial sites, and we’re now at the point of demand seriously outstripping supply.

“Warehousing consent numbers, particularly, have dropped back to 2016 levels.

“Occupier requirements have seen increased demand for cubic capacity, particularly in prime locations near arterial routes, and Auckland’s western corridor continues to be a target area for investors given upside potential for rental rates, capital growth and value capture.”

Hill is marketing the property for sale with colleagues Sunil Bhana, Mark Preston and Jordan Brown.

The deadline for offers closes at 2:00 pm on Tuesday, 19 September 2023 (unless sold prior).

The sizeable facility features clear-span high-stud warehousing, offices, and amenities over two levels, totalling 2,485sq m (more or less).

A concrete yard lends itself to use for container devanning, and there is generous onsite car parking, the agents say.

The property generates a net annual rent of $379,000 plus GST from a lease to automotive textile manufacturer Majestic Textiles.

Trading from the subject property for nearly three decades, the business has recently renewed its lease to February 2026, with two further rights of renewal of three years each.

Bayleys agent Sunil Bhana says preferable lease terms include a rental review structure with the mechanism to regularly reset rent to market, which is optimal in a growth market - as opposed to a long period with fixed increases.

“Such clauses within standing leases mean rental rates for established property have growth potential, which improves the yield proposition for investors and provides confidence in the rewarding nature of the asset.

Also encouraging are growth projections for the northwest region, which is expected to see some 80,000 new residents by 2040, providing a boost to the local economy, and demand for homes, goods, services and amenities.

Bayleys agents Mark Preston and Jordan Brown say the property is nestled between intensive neighbours Henderson and New Lynn, and that Glendene features an established commercial and industrial precinct with a broad residential catchment.

“Given its central-west location, it continues to attract a high level of investment, and we expect the new owner of this property will benefit from securing a sizeable footprint in an evolving location, underpinned by a great passive income stream.”

Click here for more information on the listing.