This month we look at new industrial vacancy data for the Auckland and Wellington markets, and analyse the implications of the new IPD/PCNZ investment performance data.
For the first time we have separated Auckland industrial into prime and secondary quality. The results show that it is the prime sector which is moving ahead.
We also provide updated quarterly indices for each sector and, on page six, touch on the results of our new Workplace Report 2010 which provides the market with robust benchmarks for office occupation.
We monitor over 10 million square metres of industrial space in Auckland region. As the chart to the right shows, the good news is that vacancy has reduced, to 6.19% in August from 6.67% in February. The last six months is the first period of positive industrial net absorption since February to August 2008. So that’s all good, only around 633,000m² of empty sheds left! We have been pointing out for a long time now that many of these properties are virtually unlettable or unsaleable as they do not fit the requirements of modern businesses. This is borne out by an examination of prime and secondary industrial vacancy. Expressed as percentages, the difference between prime at 4.0% and secondary at 6.7% is not surprising but secondary is a much bigger proportion of the whole stock so that expressed in area terms, the difficulties facing owners of secondary property become clearer. Of the 633,000m² vacant, 559,000m², or 88%, is of secondary quality.
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Sales,
Office Leasing,
Retail,
Industrial,
Character Space,
Valuation and Advisory Services,
Corporate Solutions,
Research & Consultancy,
Auckland Office,
North Shore Office,
South Auckland Office,
Wellington Office,
Christchurch Brokerage,
Dhilan Balia,
Alan McMahon