A substantial freehold land holding in Frankton is up for sale providing a rare development opportunity in the long established central Hamilton industrial precinct.
Located at 71 Killarney Rd, the offering comprises 3710 sq m of L-shaped land with approximately 16m of frontage to the major arterial road.
Featured in Bayleys’ final national Total Property portfolio for 2018, it is one of seven Waikato properties that will go under the hammer in Bayleys’ Hamilton auction room on December 6, unless sold prior to that date.
It is for sale with vacant possession and is being marketed by Bayleys Hamilton’s Mike Swanson and Alex Ten Hove.
“This prime industrial holding offers an excellent development opportunity in a popular location where industrial land is in high demand but in very short supply,” says Swanson. “It comprises mostly bare, flat land with the exception of three small industrial sheds with a total floor area of around 400 sq m. One of the features of the property is its depth, stretching nearly 110m from the road front to the rear of the site.
“It offers an immediate option to develop or alternatively could be viewed as a long-term land banking opportunity.”
Alex ten Hove says the site is well positioned in a busy industrial/commercial setting close to state highway connections, being only one block away from SH1 with SH23 also nearby. Surrounding industrial businesses include Roadmarkers NZ, automotive parts suppliers, tool suppliers, plumbers, tyre retailers, metal yards and transport, logistics and supply companies. Commercial occupants include car sales yards, a gymnasium a Challenge Service station along with a string of big name fast food outlets including McDonalds, Wendy’s, Carl’s Jr and Burger King.
“The land for sale is very centrally located providing good accessibility to other parts of Hamilton,” says ten Hove. “Excellent highway access also increases its appeal for businesses with wider business interests within the Golden Triangle of Auckland, Tauranga and Hamilton which generates almost 50 per cent of New Zealand’s GDP.”
The offering at 71 Killarney Rd comes on the market at a time when the supply squeeze continues in the Hamilton industrial sector
Bayleys Research’s recently completed survey of the market shows industrial accommodation conditions remain extremely tight, with a vacancy rate of just 2.3% in the city’s major industrial precincts. Frankton’s industrial vacancy fell to 2.2% from 3.3% in September 2017.
Despite significant growth in industrial building consents over the past few years, demand for well-located properties close to transport arterials continues to be strong, says Bayleys Research senior analyst Goran Ujdur.
“The underlying driver of occupier demand for industrial premises continues to be Hamilton’s increasing population which is resulting in ongoing business growth and construction activity. There is little to indicate this population growth will slow over the next few years
“In addition, completion of all sections of the Waikato Expressway, expected by 2020, and commencement of works on select sections of the southern link roads over the next few years will further improve freight flows and add to the Hamilton’s attraction as an industrial location. The city’s growing role as a freight ‘transit-hub’ between Auckland and Tauranga is generating considerable demand from an increasing number of freight and logistics operators.”
Ujdur says industrial rents in Hamilton have continued to increase over the past 12 months, especially for new builds, reflecting rising land values and construction costs as well as solid tenant demand.
“On the investment side demand also remains strong. The challenge continues to be the limited supply of quality offerings available to satisfy this demand with competition amongst local investors, occupiers and outside buyers remaining intense. Yields in the five to six percent range are now the norm for prime quality industrial offerings in Hamilton.”