The lack of favourably zoned land and a lean development pipeline across the Wellington region is supporting occupancy levels and property values in the industrial sector, with solid enquiry being fielded for well-located space both for lease and sale.

Agents marketing a fully occupied modern industrial property comprising four high-quality warehouses on a 6,546sqm site on the western side of Broken Hill Road, Kenepuru towards the western extremity of the Porirua industrial precinct, say it’s an opportunity not often seen in the Porirua market and buyers are circling.

Zoned General Industrial, with a height overlay of 10 metres, the offering at 8A and 8B Broken Hill Road has a total building footprint of 1,771sqm. The development of four high-stud warehouses with offices, amenities, and mezzanine areas plus an ample yard with parking for 15 vehicles was completed in 2020 and has had a sound leasing history since.

All units are fully self-contained with contemporary kitchens and bathrooms. Efficient layouts, with full height aluminium windows to the office and mezzanine areas bringing in excellent natural light, provide optimal working conditions.

The property has significant street frontage in an area typified by medium to high stud warehouses used for manufacturing and storage.

There are three established tenants across the site – DC Systems, NZ Spas and Rubber Monkey, with the latter occupying two of the warehouses. The property generates net annual income of $289,759 per annum plus GST.

Tenders for the property close on 21st May through Simon Butler and Paul Cudby of Bayleys Wellington Commercial.

Butler says it is some time since a multi-tenanted modern industrial property like this has come up for sale in Porirua, and the asset is a quality investment in the current market.

“It’s had very light use, and is presented in really good condition. The current users are in the distribution, import, and logistics sectors and the property works well for them.

“Investors and lenders will appreciate the split-risk profile the well-serviced warehousing offers, and recognise the scale the building has for larger occupiers who tend to sign longer leases and show strong commitment to this sort of site.

“The property is versatile and would suit a range of occupiers, with the high-stud space and utilities meaning it’s not pigeonholed and will remain relevant with the industrial leasing market over time.”

The connectivity benefits resulting from Transmission Gully really support industrial property in Porirua, says Cudby.

“It’s a logical industrial precinct that leverages its position north of Wellington city, and benefits from a large labour pool with future population growth assured.

“Given the constraints on land elsewhere across the region, the identified Northern Growth Area which is a future urban zone comprising more than 1,000 hectares of greenfield land next to State Highway 59 between Plimmerton and Pukerua Bay is expected to meet some of the area’s housing supply needs.

“To be developed incrementally, the land could provide about 6,000 homes, including the recently fast-tracked mixed-use Plimmerton Farms project– adjacent to Plimmerton Village and train station – and the Mt Welcome development.

“Increased population requires an increase in industrial property footprint and capacity, so that underpins the value of the subject warehousing in Broken Hill Road.”

Elsewhere in the wider neighbourhood significant developments include The Works Elsdon industrial complex and Crown Relocations’ super-high-stud new build on Raiha Street. The Porirua CBD and bulk retail park is a short distance to the northeast, and the strategic location has efficient access to SH1 and Transmission Gully, ensuring seamless connectivity to Wellington and beyond.