"A new owner could develop another property to co-exist with the existing building, or develop a new premise to lease out. Either option provides this property with significant upside."
Smith says the property is about 20 years old and has been well-maintained by the previous tenant Agility Logistics.
Close to the new Kirkbride Rd motorway interchange, the property has dual access from both Richard Pearse Drive and Ascot Rd, and is also only a five-minute drive from Auckland Airport. The area is busy, with many logistics and warehousing firms utilising the location for its accessibility to the airport and major transport links such as State Highway 20.
Soroka says a property of this sort is perfect for distribution, due to the large warehouse space and drive-through truck access.
He says properties offered with vacant possession have been in high demand within the industrial owner occupier market.
Augusta recently sold 100 Carbine Rd to an owner-occupier for $36.8m in one of the largest single industrial property transactions in recent years.
"Given the scarcity of industrial land outside of airport control in South Auckland, this property having room for expansion is a major bonus for the eventual purchaser. This is especially pertinent given the relatively high density of development surrounding the property," says Soroka.
Tom Barclay, JLL's associate director of research and consulting, says the agency's most recent industrial vacancy survey conducted in June 2017 showed a vacancy rate of only 3.1 per cent in the popular Airport Oaks precinct.
"This represents only 41,000sq m of available space against the total market of 1,320,000sq m, which JLL tracks in the area. It clearly demonstrates the popularity of the location with major manufacturing and logistics occupiers. Further to this point, net absorption for the Airport Oaks precinct over the past 12 months has exceeded 132,000sq m. The fact the industrial footprint has expanded by this much in such a short period of time without a corresponding rise in vacancy speaks to the strength and desirability of the location.
"The high levels of development occurring in the Airport Oaks precinct, driven largely by Auckland Airport, will underwrite the performance of this location long-term. The area is quickly evolving into the most desirable industrial precinct given the modern stock, access to key transport routes, as well as proximity to the workforce and the city."
