Sales signal industrial sector rebound

Recent sales of several substantial warehouse and factory premises in the Auckland industrial precincts of Penrose and Mt Wellington indicate that demand for industrial property is picking up.

Mike Houlker, the industrial manager for Bayleys Real Estate in Auckland, says the industrial sector is traditionally the first sector to recover from a downturn in the market and there are definite signs of increased demand for vacant buildings from owner-occupiers.

"It started last year at the smaller end of the market but more recently has gathered further momentum to include quite large buildings which were vacant for a considerable time," Houlker says.

The largest transaction involved a 5284sq m industrial building on a site of 9879sq m at 10-12 Autumn Place, Penrose, which was sold for $5.2 million by Houlker and David Gubb of Bayleys Auckland. The property has 4704sq m of warehouse and factory space with five roller doors, container store, excellent truck access and 580sq m of office.

Gubb says the industrial complex was purchased by a plastics manufacturer looking to expand business. It's the third time that Houlker and Gubb have sold this property with previous sales in 2001 and 1997 at $4,265,000 and $3.2 million respectively.

To read the full NZ Herald article, click here

Posted: 27 Feb 2010

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