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.