Queenstown’s Colliers is marketing Aotea Electric’s premises at 137 Glenda Dr at the heart of the resort’s trade hub in Frankton.
Owned by local and Alexandra interests, it especially appeals because of its long lease — eight years plus two four-year rights of renewal — according to Colliers real estate broker Steve McIsaac, who’s marketing the property alongside colleague Barry Robertson.
The current yearly rental is $207,873 plus outgoings plus GST, with four-yearly rent reviews plus annual CPI adjustments.
It also has 20 carparks, which is rare for busy Glenda Dr, while the building, which has a mezzanine floor, was recently refurbished.
However, perhaps the 1410 square metre property’s biggest selling point is the severe shortage of industrial land to develop in Queenstown, meaning the market’s mostly limited to existing built product.
"Closely linked to this," the information memorandum (IM) states, "the tenant demand for industrial space far outweighs the available supply, leading to the Frankton industrial market having the lowest vacancy rates on record."
The IM says strong demand for industrial land in this area is evidenced by six sales over the past 12 months ranging from $1.85million to $3.3m.
McIsaac expects 137 Glenda Dr will sell north of $4m — he says the 2021 capital valuation of $2.94m is out of kilter with today’s market.
He thinks it will appeal equally to local and out-of-town investors.
"The locals know this stuff doesn’t come along very often, and we’re certainly seeing a lot more people from out of town looking again on the back of interest rates coming down."
"I think the market’s got a lot more positive sentiment in it than six months ago."
The auction’s on December 10 at Colliers’ Queenstown office.
