Warehouse/industrial units ranging from €300,000 to €1.5m on Cork City’s outskirts have come to market this month, at Little Island and at the Kinsale Road.
Smallest offer, and guided at €46 psf, is a 6,020sq ft older-era unit at Little Island Industrial Park. It has 5m eaves and is on a 0.37-acre site near Pepsi and Wisetek. Selling agent Ed Hanafin of Lisney guides the mainly single-storey semi-detached building at €300,000.
Meanwhile, a more modern 24,000 sq ft Unit 2 at the Touchdown Business Park, near the Kinsale Road Roundabout, is for sale with Philip Horgan of Cushman & Wakefield, at a guide of €1.5m or €62 psf. Adjoining Hanleys Garden Centre and the Lehanes Toyota dealership, this substantial modern detached warehouse includes 2,400sq ft of offices over two levels, with four dock levellers, roller shutter doors, office accommodation and open plan warehouse with 6.2m eaves.
It has been let to logistics company Kuehne + Nagel Ireland Ltd on a five-year lease from November 1, 2012 at a passing rent well below market levels, at €82,000 pa, or €3.40 psf.
Kuehne + Nagle has secured tenant rights to a new lease at market rent, about €6 psf or possibly higher for similar units, indicating a 8% return, says Mr Horgan, adding “the company have yet to confirm whether they will be exercising this option. Should the tenant not exercise their option to a new lease the likelihood is that a new tenant should be acquired in a short period of time, as there is a limited supply of similar properties on the market in such an excellent location.
“This represents a high quality industrial investment opportunity; the property should be of interest to investors looking to secure an industrial unit that will attract quality industrial occupiers. The reality is that there is a supply issue of modern quality warehouse units as it is still uneconomical to develop units at current values; the presumption is that capital values and rental values are likely to keep rising as the supply get even tighter until development becomes viable again.”
Details: Lisney 021-4275079, Cushman & Wakefield 021-4275454
© Irish Examiner Ltd. All rights reserved