As industrial land reaches capacity in the Tauriko Business Estate - one of Australasia’s fastest-growing industrial hubs - a recently built and fully leased asset at the heart of the booming precinct is being presented to the market by Bayleys Tauranga.

Bayleys broker Myles Addington says the 1,341sqm (more or less) freehold site at 20 Whiore Avenue offers secure long-term income in a prime location, presenting a compelling opportunity for investors to capitalise on the area’s rapid expansion and the ongoing demand for premium industrial facilities.

“Spanning 561sqm (more or less), the property features an extensive internal fit-out purpose-built for the funeral home tenant, offering adjustment for adaptation or removal. The design was intentionally planned to allow potential to split the space into two separate tenancies, providing owners with flexibility as the market evolves.

“With significant exposure to State Highway 29 and a prominent billboard for business promotions, it provides valuable visibility while allowing for future customisation.”

The internal configuration includes a chapel, associated family rooms, a large warehouse with dual roller doors utilised for vehicle storage, and amenity spaces over two levels.

Addington says that the existing tenant’s high-quality fit-out serves as a strong anchor, offering an appealing combination of visibility and accessibility which is supported by a secure long-term lease to the reputable operator.

“Simply Funerals occupies the premises on a 10-year lease, currently returning $125,934.13 per annum, with more than five years remaining in the initial term.

“A further $11,435.36 per annum is derived from the six-year lease of an on-site cellphone tower, bringing the total annual net rental income to $137,369.49, including use of the billboard.”

Addington says that while the broader property market has softened in response to economic conditions over the last 24 months, modern properties with strong lease covenants remain highly sought-after.

“Tauriko continues to attract high-quality national and multinational occupiers given the strategic location and modern infrastructure, with growth further bolstered by local government support to rezone 108ha of land to industrial, addressing 320ha of projected industrial demand over the next 30 years.

“This expansion enhances the area’s long-term appeal, offering investors a prime opportunity to capitalise on sustained growth and a pipeline of capital investment.

“The subject property sits in the heart of that growth and provides investors with the benefit of a long-term, secure tenancy in an area supported by high demand for quality commercial and industrial space, plus up to 4,000 new homes across Tauriko West.

“Additionally, Tauriko is also less than 2.5 hours’ drive from nearly 50 per cent of New Zealand’s total population – a valuable geographic advantage for businesses seeking optimal connectivity and reach.”

Whiore Avenue joins Taurikura Drive, providing access to the Port of Tauranga, and Rotorua, Hamilton and Auckland via the State Highway network.

Addington says that industrial property across the region is in short supply, with warehousing in particularly high demand given accessibility to the country’s two busiest seaports and projections for local economic activity.

“With low industrial vacancy rates and its strategic proximity to key transport links and major businesses, the area continues to draw strong investment. Coupled with a secured lease term to an established operator, this asset is a modern, hands-free opportunity, primed for long-term success in a market that shows no signs of slowing down.”