Buyer demand for well-located and fully tenanted industrial properties has not wavered in the Auckland market despite economic uncertainty, with strong levels of enquiry being received on industrial assets for sale.

Currently attracting attention is a Penrose industrial property with diversified income streams across dual tenancies. The unit-titled property is fully ccupied by two well-established global brands who recognise the value of the strategic location in the broader Auckland market.

With good exposure to one of Auckland’s highest traffic volume arterials, Units A and B at 525 Great South Road, Penrose offer a total 2,002.09sqm space within one building forming part of a wider Penrose industrial park.

The modern, well-appointed units with generous ground floor showroom, first floor office space and efficient warehousing were built in 2010 using tilt-slab construction and there are 43 car parks associated with the offering, some at basement level and the balance in the sealed yard.

The front unit is occupied by multi-national payments technology company Verifone which was founded in 1981 and now operates in more than 150 countries around the world. The rear unit is home to Hilti New Zealand, a global firm headquartered in Liechtenstein and founded in 1941, providing tools, software, and services to the construction industry.

The property returns combined net annual income of $473,393 plus GST across the two tenancies.

Zoned Business - Light Industry, 525A and 525B Great South Road are for sale by deadline private treaty closing 14th August, unless sold prior through Sunil Bhana and James Valintine of Bayleys South Auckland.

With the industrial sector proving that it has staying power as an asset class, Bhana says this property offers what investors want.

“It’s an uncomplicated, flexible offering with high-spec warehousing, showroom, and office space in a bustling precinct with direct access to Auckland’s key transport networks which appeals to a wide range of occupiers.

“Vacancy rates across Penrose industrial property are very low and space is always sought-after here given the streamlined connectivity to the city, Ports of Auckland, Auckland Airport, and the wider motorway network.

“The subject property works well for the current tenants who have both been onsite for a long time, with the central location’s logistical efficiency and high brand exposure making sense.

“The fundamentals of the property will ensure wide appeal for occupiers over time, with split-risk across the two units and future rental growth potential.”

Inventory of tenanted investment stock has been fairly constrained of late, says Valintine but enquiry levels remain high.

“With term deposit rates faltering and other investment classes fluctuating, the focus is on well-performing property assets that will hold value over time.

“Industrial in itself is well-positioned in that regard, but in Auckland terms, Penrose amplifies the value equation further given the proven connectivity advantages of the location and the unrelenting demand for space by occupiers.

“It’s a stalwart industrial precinct that holds its own across market cycles, and has relevance to national and international occupiers looking to consolidate a central presence where there’s easy accessibility across the city network.”