A substantial industrial landholding in the heart of Otahuhu’s logistics and manufacturing hub, with significant income, an impending vacancy, and flexible development potential, has been presented to the market in a desirable dual-title offering, Bayleys brokers say.

Bayleys South Auckland director Sunil Bhana is marketing the 4.107ha (more or less) freehold land parcel at 5 and 21 Beach Road, Otahuhu, for sale by deadline, closing at 2:00 pm on Thursday, 25th September 2025 (unless sold prior), alongside colleagues Mike Houlker and James Valintine.

The Business – Heavy Industry zoned land includes more than 22,750sqm of functional warehouse, factory, and office accommodation across two standalone buildings. The properties are available for purchase individually or together, with 21 Beach Road also available to lease.

Bhana says the separate title configuration provides flexibility for a range of buyer profiles, from add-value investors and developers, owner-occupiers, and major tenants seeking a strategic operational base in one of Auckland’s best-connected industrial locations.

“The property at 5 Beach Road is leased to New Zealand’s leading steel distributor, Fletcher Steel, delivering circa $903,845 net per annum plus GST on a long-term arrangement through to 2031.

“At 21 Beach Road, Pacific Steel will vacate the premises in June 2026, opening the door for immediate occupation, redevelopment, or re-leasing – with strong potential for rental uplift given the current conservative settings.

“This combination of secure income from a nationally significant tenant and the ability to unlock value through repositioning or intensification is particularly appealing in today’s market as investors look to assets that deliver reliable cashflow now, while offering clear pathways to growth in the medium-term.”

The buildings are presented to a functional standard, with generous yard areas, multiple canopy-covered loading zones, and recent reroofing works. Low site coverage offers future redevelopment or intensification options, supported by permissive zoning, which accommodates a wide range of manufacturing, production, logistics, storage, and distribution activities.

Otahuhu is one of South Auckland’s most established industrial precincts, strategically located between the Central Business District and the International Airport.

Bayleys Commercial director Mike Houlker says the location has long been a drawcard for industrial occupiers, given proximity to both the port and airport, multi-lateral transport links, including State Highway 1, 20 and the Southeastern Highway, and access to South Auckland’s labour pool.

“Nationally, the industrial sector remains one of the most resilient property classes, underpinned by constrained supply, high barriers to entry and sustained occupier demand. In South Auckland, particularly, a lack of development-ready industrial land of scale continues to drive competition among tenants and purchasers.

“With vacancy at 21 Beach Road less than a year away, buyers have the advantage of time to plan for their occupation or secure new tenants in advance, while leveraging the income stream from 5 Beach Road to offset holding costs.

“Opportunities to secure this scale of industrial land, with dual frontages, income security and clear future upside in such a central Auckland location are infrequent, presenting a solid opportunity for a variety of users.”