Colliers International has just released their latest New Zealand Industrial Market Indicators report.
The industrial sector continues to lead the commercial property market out of the recession with a total return of 7.3% for the year to June 2010, well ahead of the composite (all sectors) return of 3.6%. Returns for the office and retail sectors are still being held back by declining capital values.
Signs of recovery are however far from consistent. Variations in the Auckland market can be seen between prime and secondarywhere only 74,000m² of the total 633,000m² vacant industrial property is of prime quality.In Wellington, fortunes vary between two of the best known precincts with vacancy in Seaview up to 9.3% while Petone has declined
significantly to only 3.3% vacant.
There are more important things to do in Christchurch currently than carrying out our industrial property vacancy survey, but we hope to bring you updated data on that later in the year. In the meantime, we would point out, that although most of the coverage of the Christchurch earthquake has centred on the CBD, industrial properties have also been significantly affected, but typically in a less visible fashion than some office or residential buildings. Internal racking damage or movement has caused huge damage to stock. It will be some time before the full effects of damage are known.
Click here to read the full report in PDF format
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