Colliers International has just released their August commercial property Research Report of New Zealand.
After a few months of pretty bleak commentary it is refreshing to be able to record some positive signs. Firstly the decline in the industrial property market is slowing. Rents have declined and vacancy increased, but not dramatically. We have just completed our bi-annual vacancy survey in the Auckland precincts, and while vacancy has increased, indications are that this is happening later in the cycle than for say the office sector. This has important implications for the sector, implying that improving economic conditions will halt further value declines quite soon, and that in 2010 that things can only get better. We expect industrial vacancy to peak in the next twelve months. Secondly, the Business New Zealand Performance of Manufacturing Index is showing a pleasing rebound both here and in Australia, indicating that manufacturing may not contract further. Thirdly industrial rents in Auckland and Manukau appear to have stopped declining.
Our industrial property sample in Auckland is nearly 10million square metres, and we measure the vacancy levels bi-annually, which enables us to track the market closely. The August survey has uncovered some dramatic increases, for example in Airport Oaks and Mangere, where the overall vacancy at 8.6% is the highest of all the precincts, up 85% (from 4.6%) in six months.
Click here to read the full report in PDF format
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Sales,
Office Leasing,
Retail,
Industrial,
Valuation and Advisory Services,
Corporate Solutions,
Research & Consultancy,
Auckland Office,
North Shore Office,
South Auckland Office,
Wellington Office,
Christchurch Brokerage,
Dhilan Balia,
Alan McMahon