Growth projections, improved transport links, and a rapid population increase underpin investor interests in a prime commercial asset in the Kāpiti Coast.
A modern commercial premises on a prominent corner site in the Kāpiti Coast is generating interest amongst investors identifying enormous growth potential in the locality.
The functional 496sq m (more or less) showroom/warehouse at 9 Te Roto Drive is one of nine units in a busy commercial complex on the corner with Kāpiti Road.
Bayleys salesperson Jo Stewart says the tenanted investment presents an opportunity for purchasers to capitalise on the growing population’s high demand for amenities and services.
“Kāpiti Coast is the fastest-growing region north of Wellington, with a population expected to increase by 40 per cent, or 30,000 people, by 2050.
“Accessibility via critical infrastructure, including the Transmission Gully, Peka Peka to Ōtaki Expressway and Ōtaki to North Levin project, have increased connectivity across the region, attracting a younger demographic into the area, and creating opportunities across a variety of sectors.
“One such growth area is commercial investment, with greater demand for goods and services heating up competition for a limited supply of existing assets in prime locations.
“Challenges in providing new development have lifted the value of existing assets, particularly those with high exposure to key transit routes and potential benefits from the growth in residential construction.”
Stewart is marketing Unit 8 for sale by auction with colleague Mark Sherlock. It is scheduled to take place at 11:00 am on Thursday, 26th October 2023.
The property features a high-stud showroom with a small rear warehouse at street level and 96sqm (more or less) of mezzanine offices located at the northern end of the complex.
The neighbourhood development provides ample shared car parking and exposure to passing vehicle traffic by virtue of its corner location very close to the Kāpiti Expressway, which sees in excess of 27,000 passing vehicle movements daily.
National retailer the Tile Warehouse, which specialises in the sale and distribution of flooring, surface and exterior paving products, has a recently renewed a six-year lease to July 2028 with two further three-year rights of renewal in a lease which returns a net annual income of circa $75,743 per annum plus GST.
Bayleys salesperson Mark Sherlock says the premises is of an attractive conventional construction, comprising a steel portal frame, concrete foundations and predominantly iron exterior cladding/roofing, with full height glass retail frontage.
“Most interior space is high-stud, with a suspended ceiling, drop lighting, and air-conditioning.
“There is a warehouse to the rear with two roller doors and a mezzanine comprising offices and staff amenities.
“The property features a seismic assessment of 71 per cent of New Building Standard.”
Occupants of the surrounding area include household name trade businesses Plumbing World, Resene, Mitre 10, and essential retailers BP, Z energy, and a New World supermarket.
“The location is second to none and positioned to benefit from the economic connectivity with Wellington and the wider Horowhenua District, with large occupiers increasingly exploring their options here due to impressive growth fundamentals and the comparatively affordable cost of operations.
“We expect commercial supply will remain tight until the pipeline of planned development comes online over the next decade, with future projects concentrated around the Kāpiti commercial precinct underpinning its value as the hub for regional activity,” Sherlock says.