‘Spec’ Builds To Address Critical Shortage of Business Premises

‘Spec’ Builds To Address Critical Shortage of Business Premises

A critical scarcity of high-quality industrial/trade premises available for lease in Auckland’s central industrial area is leaving many businesses with literally nowhere to go.

According to commercial realtor Colliers International, there is now no ‘prime’ (A grade) industrial space available for rent in Penrose and Onehunga (as at February 2015) – with the vacancy rate hitting zero for the first time since records began.

Richard Paul, Asset Manager for well-known industrial and residential developer Southpark Corporation, says that for strongly-performing businesses looking to expand, move or set up a branch in the popular central suburbs right now, high-quality options are impossible to come by.

“With zero availability of high-quality A grade premises in the central Auckland industrial precincts of Penrose and Onehunga, businesses are having to postpone their plans to move, or look further afield to suburbs like East Tamaki, Wiri and West Auckland.”

Of particular need are high quality smaller units, he says. “We’re aware of several businesses which are looking for more compact premises to use for localised retail distribution and trade showroom purposes.”

In response to this demand, Southpark Corporation is constructing an uncommitted multi-unit development at 63 Hugo Johnston Drive in Penrose. Eight units of between 250sq m up to 1200sq m in size are offered for lease, with good canopy coverage, flexible office components and a central truck access and parking area.

With practical completion due at time of publication, Southpark has just kicked off marketing the units, which will be managed in-house by the company’s own property management team. “We’ve now got a completed product to take to the market with a skilled and experienced team behind it, and we are receiving qualified enquiries as marketing gets underway.”

With vacancy rates at zero, the units present attractive options for businesses which require new facilities in a central Auckland location immediately, says Paul.

“We’ve taken care to design units that will suit a range of occupiers. When planning spec builds, you have to cover all bases in terms of occupier requirements, such as providing flexible office components and maximum cubic storage capacity. These functional and attractive units will tick all the boxes for many businesses.”

Staff and visitor parking, a public café and truck manoeuvring space will also be provided. “The central yard is container friendly and there is space for a B train to make deliveries to the units. We’re confident that for tenants looking for new, compact, A grade facilities in the central Auckland industrial area, this development will be an attractive proposition.”