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Industrial yields may firm further in 2021, says award-winning top broker

Industrial yields may firm further in 2021 says awardwinning top broker

Auckland industrial yields are likely to firm further in 2021 as a shortage of quality assets continues to drive intense competition in the market.

That’s according to Greg Goldfinch, the award-winning National Director of Industrial Sales and Leasing at Colliers International.

Goldfinch was recently recognised with the Commercial and Industrial Salesperson of the Year Award at the 2020 REINZ Awards for Excellence.

Colliers International’s Highbrook Industrial and Investment Sales teams were also recognised with the Commercial and Industrial Office Award for offices with 25 or fewer licensed salespeople.

It is the second time Goldfinch has taken out the top award, having been runner up twice previously, and the sixth time in the last seven years that the Highbrook office has won its category.

Goldfinch says the low interest rate environment has driven heightened demand for industrial investment assets in Auckland.

“High net wealth individuals, syndicators and property companies are all active in the market. Low interest rates have also increased the appetite from occupiers to secure their own premises.

“However, sales turnover is currently constrained by a shortage of quality assets being brought to market.”

Goldfinch says yields are continuing to firm, with Auckland’s average prime yield now between 4.4 per cent at the lower end and 5.3 per cent at the higher end.

Secondary yields have also compressed, to between 5.0 per cent at the lower end and 6.2 per cent at the higher end.

“Both prime and secondary yields could well firm further in 2021, given the unique market dynamics we are seeing in the sector.”

Goldfinch says an increase in development activity and a shortage of vacant industrially zoned land have seen Auckland land values continuing to trend upwards across both established and emerging industrial precincts.

In the year to September, average land values increased by about 12.5 per cent in the Airport, Onehunga/Penrose and Mt Wellington areas, while in East Tamaki values rose by some 16.7 per cent.

Charles Cooper, Auckland Managing Director at Colliers, says the recent REINZ award wins testify to the professionalism Goldfinch and his team bring to the tightly contested Auckland industrial market.

“As the industrial market continues to go from strength to strength, it’s more important than ever for our clients to receive the very best advice and solutions. Greg and his team consistently perform, which has been clearly recognised by these two prestigious awards.”

Goldfinch was previously named Commercial and Industrial Salesperson of the Year at the 2013 REINZ Awards. He has also been Colliers’ top annual salesperson five times, including three times in a row in 2017 to 2019.

“I am grateful for the recognition from REINZ, hugely appreciative of the opportunity to lead such a collaborative team and humbled by our clients’ ongoing confidence in us to assist them with their property decisions,” Goldfinch says.

Industrial Director Andrew Hooper, who worked on numerous large-scale campaigns with Goldfinch, was named a finalist at this year’s awards.

Goldfinch paid tribute to Hooper and the wider team, and to Matt Barnes who leads the South Auckland Investment Sales team, as well as the clients who contributed to the Highbrook office’s success.

“We are always appreciative of the faith that our clients have in us as trusted advisors and delighted that our team’s dedication and collaborative attitude have been recognised again by REINZ.”

The Highbrook team took out the REINZ Award in its category for the second year running. Last year’s win was a double-whammy, with the team also winning Agency Team of the Year at the RICS New Zealand Awards 2019.

The Highbrook office transacted many of Colliers’ top deals in 2019, including the sale of Visy’s substantial new Hamilton facility, in collaboration with experts in Hamilton and Melbourne. The 36,000sq m property at 122 Ingram Road, Hamilton, sold for more than $70m.


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Greg Goldfinch

National Director | Industrial

Auckland South

Greg specialises in the mid to upper end of the Industrial sale and leasing markets. He joined Colliers International in 2004, coming from a policing background. He quickly established strong relationships within the industrial market and has worked exclusively for the likes of Fisher & Paykel, The Warehouse, Freedom Furniture, Fletchers, NZ Police, NZ Guardian Trust, Goodyear Dunlop NZ Ltd and Mercedes-Benz to name a few.

Greg has been the lead broker on nearly all of the largest transactions in the industrial property market over the last ten years. Greg has completed three of the largest industrial sales ever in the New Zealand market. He is a regular top 10 broker for Colliers across NZ having transacted in excess of $6billion worth of industrial real estate in his time with Colliers.

In 2013, 2019 and 2020 Greg was awarded the Commercial and Industrial Salesperson of the Year Award by the Real Estate Institute of New Zealand and was runner up in 2018. Greg was Colliers International’s top salesperson in New Zealand across all sectors in In 2010, 2013, 2017, 2018, 2019 and 2020.

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Charles Cooper

Managing Director - Auckland

Auckland

As Colliers International's Auckland managing director, Charles holds a strategic role responsible for the entire client service experience, the growth strategies and the profitability of the total Auckland business. Charles is also a key member of Colliers International's New Zealand board of directors and sits on the Australasian senior leadership team.

Colliers International's Auckland business is the strongest commercial real estate services player in the market and employs over 260 professionals in four offices across the city.

Charles is also responsible for growing Colliers' market share across its various service lines and charged with developing Colliers’ Auckland business as a ‘best practice’ model for the company’s 20 nationwide offices.

He is also responsible for people management across the Auckland offices, including leadership and direction, recruitment, mentoring, skills development and succession planning; as well as implementing and developing new business lines.

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Andrew Hooper

Director | Industrial

Auckland South

Andrew specialises in mid to upper end industrial sales and leasing projects.  He has excellent relationships within the property market and has transacted over $4b of commercial property at Colliers making him a leading broker in the New Zealand Industrial market.  His clients range from listed property funds such as PFI, Goodman, to syndicates and multinational occupiers/tenants. 

After a brush with brain cancer in early 2017, he is now fully operational and continues to be a top performer at Colliers.

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Matthew Barnes

Director | Investment Sales

Auckland South

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