Colliers International has just released the March commercial property research report of New Zealand.
Colliers monitors close to 10 million square metres of industrial property in Auckland, over many precincts. The industrial property market is still being seriously squeezed, with over 650,000 square metres of warehouse and factory space empty across Auckland, but there are signs that the pressure is easing. This month we highlight the results of our new Auckland Industrial vacancy survey. In 12 months vacancy overall has jumped from 4.8% to 6.7% but the rate of increase is slowing. Six months ago it was 6.4%. Already vacancy in some precincts is reducing. We have commented before that industrial is the property asset class that tends to recover first after a downturn, and we think we are seeing signs of that now.
Manukau is the engine room of the region’s industrial market, with 3.8 million square metres monitored, and still has the lowest vacancy of the three cities despite increasing from under 3.8% to 6.3% in the last year. There has been very little new supply, so that the increase in vacancy can be largely attributed to businesses downsizing or leaving their premises.
The North Shore market is mixed, with reductions in Mairangi Bay and North Harbour contrasting with an increase in Wairau Valley. In Auckland City, the central areas of Mt Wellington and Penrose/Onehunga both rising to over 7%, the first time that has occurred for over seven years, but Rosebank/Avondale to the west declined markedly for the second consecutive six month period, and is now at only 3.9%, the lowest vacancy of all precincts.
Click here to read the full report in PDF format
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