A partially occupied warehouse property in the Wellington region’s largest industrial precinct has come to the market for sale with intrinsic occupier and add-value upside, plus redevelopment potential waiting to be unlocked.

The typical sawtooth circa-1950s standalone industrial warehouse with large yard areas at 113B Hutt Park Road, Gracefield has its main frontage to Parkside Road near its intersection with Bell Road South. The location has easy access to the broader Seaview and Gracefield precinct and gives exceptional business exposure along a key arterial route.

The regular-shaped 6,518sqm freehold site zoned Special Business has dual road access, supports a 3,150sqm warehouse building with well-appointed office and amenity areas divided into two roughly equal size tenancies, and has 2,175sqm yard space.

The front half of the property is securely leased to Carter Tyre Service Limited, on a fresh lease of five years from 31 July 2025, with one, three-year right of renewal, fixed annual rent increases and three-yearly reviews to market. The Carter’s lease will return gross annual income of $220,000 plus GST.

The rear 1,568sqm warehouse with 1,174sqm yard space is currently vacant, with the property having potential total net annual income of around $360,000 plus GST if fully leased.

The property is for sale by tender closing 16th April through Ethan Hourigan and Richard Faisandier, Bayleys Wellington Commercial.

The tight nature of the region’s industrial market where vacancy sits at around 2.5 percent is illustrated by Carter’s Tyres’ commitment to the site, says Hourigan.

“Carter’s used to occupy the whole site, but looked for alternative premises when their current lease was approaching expiry. They soon realised that options were extremely limited in the immediate area, and across the Wellington region.

“They subsequently renewed their lease on the Hutt Park Road premises, consolidating into the road front warehouse for efficiencies.”

Hourigan says owner-occupiers should enquire quickly if they’re in the market for functional, well-located space with the benefit of holding income, add-value investors will definitely see opportunity, and landbankers with an eye to the future will also appreciate the fundamentals.

“The vacant rear warehouse and yard component could suit owner-occupier businesses looking for storage or additional capacity, with the space suitable for contractor vehicle storage, to accommodate overflow inventory, or could be used for engineering, automotive, or general distribution-linked businesses.

“The add-value market could swoop in and reroof the property, generally freshen it up with new roller doors and a paint job, and go out to the occupier market for a tenant on the vacant warehouse. Alternatively, a new owner could look to demolish the rear component and commence the first part of a staged site redevelopment.

“The true value ultimately lies in the landholding – which forward-thinking buyers will recognise. Industrial-zoned land is at a premium in the wider Wellington region and they’re not making any more land in this preferred Gracefield-Seaview precinct.

“Redevelopment of existing sites is the only option to create modern industrial stock to bring to the market.”

As the Wellington region’s principal heavy industrial precinct, Gracefield is dominated by large warehouses and factories. It is popular among freight, storage, manufacturing and distribution businesses, with Mainfreight, Dulux, Masterpet, and Placemakers in the subject property’s immediate neighbourhood.