A commercial property development planned in Auckland is being heralded as an investment opportunity for people in the early stages of their wealth creation cycle. Tom McAlister, sales director for developers Conrad Properties Group, says The Workshops development in Mt Wellington is offering modest-sized industrial units suitable for both investors and those looking for a place to operate a small business.
More than 160 units are to be built - with 70 already sold. Construction is expected to start early next year at a time when McAlister says, the industrial property has been a top-performing asset class over the last five years.
Priced from $285,000 (and able to be secured on an initial $1000 down payment and nothing else to pay until settlement – please refer to theworkshopsmtwellington.co.nz for Terms and Conditions), larger units in the complex come with car parking and are expected to sell for between $285,000 and $585,000. “It’s a great opportunity,” he says. “Even for half a million you’d be lucky to get a one-bedroom apartment in Auckland.”
He says figures from the government’s Tenancy Services website show typical rental yields for investors are around two to three per cent based on the median Mt Wellington rental of $530 per week, whereas if units were leased today yields of up to five per cent can be expected on industrial units in the area.
“The Workshops complex means investment options are available for people much earlier in their wealth creation cycle,” he says.
McAlister says the units, which range in size from 21sqm to 92sqm and come with the option of creating larger spaces by combining units, are suitable for multiple uses.
“Warehousing, trade showrooms, manufacturing premises, e-commerce and storage are some of these,” he says. “They have been designed with entrepreneurialism in mind.
“While they are definitely suitable for people looking for a place to invest in we also want to attract owner-occupiers, sole traders, e-logistics or importers/exporters who want modest-sized premises.
“It could be someone is looking for a place for storage, to carry out a hobby they are passionate about or to operate a small business like motorcycle or e-scooter repairs,” he says.
“In terms of purchasers, we’ve had a lady who operates an essential oils business.
McAlister believes the need for this kind of premises will only increase as a result of Covid-19.
“A lot of people affected by this will consider setting up their own businesses, so we are expecting strong demand for the units.”
He says the complex is close to residential areas. A planned café/eatery will be a focal point for not only the unit occupiers and tenants, but people living nearby. The site will also have e-bike charging stations and 24-hour CCTV.
As well as the café an onsite building manager, international business centre, plenty of visitor car parking, a container and loading set-down area along with a forklift and pallet handling services (costs met by users) are other features, while its location is a short distance from the southern motorway.
The Workshops will be a freehold strata titled unit development and as the workspaces are not leasehold there is no ground rent to pay, although body corporate levies, rates and utility charges are payable.
About a third of the units have already been sold and McAlister expects the rest to go quickly. Construction is to begin early next year following the demolition of the existing building on the site and is expected to be complete by October 2022.
A display suite is open seven days at the site at 10-12 Harrison Rd, Mt Wellington between 11am and 2pm.