How being part of an industrial park could bring business efficiencies
As industrial investment property continues to outperform other commercial property sectors, vacancy levels for existing industrial business premises are at historic lows – which makes it tough for those looking to lease a new industrial property for their business.
Robust regional economies and a recognition of the important role that distribution, logistics, storage, food processing and light manufacturing play in the wider commercial environment, have seen new purpose-built industrial parks springing up around the country.
As cities continue to evolve outwards from the centre, land in some parts of New Zealand is being rezoned and designated for strategic industrial development. The handbrake is coming off in some regions and there are some exciting new opportunities on the horizon.
In Hawke’s Bay, Waikato, Christchurch and Bay of Plenty for example, significant investment is being made into establishing dedicated industrial business parks for those businesses looking to secure well-located, well-designed properties to base their operations.
While some of these offerings are being snapped up by owner-occupiers, purchasing outright is not an option for everyone.
If your business is going from strength-to-strength and you’ve been considering a move to an industrial park, here’s a few pointers:
• Industrial parks have been master-planned and carefully designed to take best advantage of the site, so the only surprises are usually good ones
• A new development will meet compliance thresholds and the design will be in-line with changing trends and demands
• Significant investment will have been made into infrastructure so the park will be well-lit, well-maintained, well-signposted
• A lot of thought will have gone into vehicular access so there’ll be capacity for effective truck movement, turning bays, parking
• The location will have been carefully selected for accessibility to arterial or feeder routes, and ports (where applicable)
• Usually the industrial park will be handily located to a residential catchment area so there will be a good labour pool to tap into
• Get in early at the initial stages of the industrial park development, make the commitment to space and you could have good input to the design process of the building you’ll occupy
• Lease design-build options mean you’ll get the space you want, configured how you’d like it without compromise – a landlord will generally configure a property to suit your business, commensurate with the lease you pay
• When you have control over the space you want, you pay for what you need – not for inefficiencies
• Well-designed and well-built industrial parks attract high-quality businesses so you’ll have like-minded neighbours
• There could be other businesses for you to leverage off – particularly if the park is anchored by high-profile tenants who have demand for ancillary services
• There may be “bulk buying” cost efficiencies on some utilities such as internet, water and power
If you spot an opportunity to become part of a new industrial park, then talk it over with your leasing agent – they’re well-connected and up with the market dynamics so can offer some sound guidance.
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