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Nelson firms double down on scarce industrial land

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A booming Nelson industrial sector is being mirrored by hot demand for well-positioned industrial land.

Geoff Faulkner, a broker with Colliers in Nelson, says locally based owner occupiers are clamouring for bare land on which to design build new premises.

Fifty nine buyers recently contested 10 prime industrial brownfields sites at Quarantine Road, in a newly-developed subdivision that was marketed by Faulkner and Auckland-based colleague Paul Jarvie. Ranging from 3000sq m to 2.3 ha, the sites collectively netted nearly $25 million in unconditional sales. And it took just a month.

Faulkner says there were nine separate buyers from the logistics, construction, engineering and aquaculture sectors. In the 1950s the land was home to a large piggery but in more recent years has housed a number of sheds which have been leased by small owner operators.

“We had massive interest across the board. Businesses are really doubling down on industrial property in Nelson. I don’t think we’ve ever seen the likes of it before; industrial land has always been very tightly held here. When this large block was released to the market it unleashed a whole new wave of demand from businesses seeking to expand and others wanting to design build for their specific purposes.”

The project started with Patrick Fontein, a director of developer Studio D4, working closely with storage container company Boxman, which had been located on the Quarantine Rd site for 22 years. Boxman is expanding into the 2.3 ha site.

Studio D4 and the Colliers brokers carried out considerable research into the needs of large industrial occupiers in Nelson, as input into the overall Studio D4 masterplan.

“We wanted to make sure we partnered with potential end users to work out the best possible solutions for them. We listened carefully to various requests and that meant we were able to fine tune the masterplan so that when we went to the market we knew we had it right. And that certainly proved to be the case. The market went ballistic. All the work we’d done in advance enabled that to happen.”

Quarantine Rd is one of the key arterial routes providing access to Nelson Airport and is close to the CBD.

Faulkner says that together with scarce supply, industrial operators are being buoyed by low interest rates.


Related Experts

Geoff Faulkner

Manager | Director

Nelson

Geoff has established a reputation as one of the top of the souths leading commercial brokers over the last 6 years. Prior to his move into commercial property, Geoff had a successful expatriate career, as a Senior Marketing Manager and Executive Director, in the fast moving consumer goods category and GSM network providers across South East Asia, Australia and Africa.

Investment sales, commercial leasing and hospitality properties are Geoff’s area of focus and expertise, with a string of successful campaigns mounted through 2015, including significant sales in Richmond and CBD Nelson

Commercial leasing is a core service for both landlord and tenants, and Geoff has successfully negotiated leases across all commercial retail and industrial spheres.

Acquisition projects are a strategic area of focus for high net worth individuals and growth orientated institutions. Geoff has successfully completed a mix of high value and strategic acquisition projects.

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Paul Jarvie

Director | Industrial

Auckland South

I am married with three young children. I have a diverse professional background including 7 years as a primary school teacher and 9 years in the pharmaceutical industry with both sales and sales management experience.

I am a keen sportsman with ocean swimming and cycling being my current activities.

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