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Auckland Industrial Report | Second Half 2021

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Despite an extended period of trading restrictions, Auckland’s industrial leasing market has remained active, continuing to reduce space availability. The overall vacancy rate is projected* to have fallen in the six months to August 2021 to 1.9%, from 2.2%. Pressure is particularly acute at the prime end of the market with leasing options becoming increasingly limited, driving design-build and speculatively-led new build activity.


Colliers is monitoring approximately 243,100 sqm of industrial space under construction in Auckland, amongst the largest pipelines recorded over recent years.  StatsNZ consent issuance for industrial premises over the year to September 2021 reached 383,615 sqm, up 16.5% on the year prior. While still behind peak levels seen in 2018 and 2019, this is well ahead of the 10-year average of 308,520 sqm.

Warehouse rents have been on an upward trajectory with prime space now commanding an average annual rent of approximately $144 per sqm, an increase of just under 7% over the year. Upward movement on rentals is set to continue given tight market conditions and increasing inflationary pressures. This is leading to a rise in the number of landlords looking to link rental increases to CPI and incorporate more frequent reversions to market levels.

Interest rates are increasing from record low levels, and the Reserve Bank of New Zealand has signalled further increases in the OCR over the next 12 months. Industrial property remains extremely sought after from investors and owner-occupiers, but rising interest rates in 2022 are likely to dampen the level of yield rate compression we have experienced in recent years. 

*Generated from a partial physical survey and a desktop analysis due to Auckland Alert Level lockdown restrictions

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Auckland Industrial Report | Second Half 2021

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Related Experts

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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Chris Dibble

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Ian Little

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Thomas's role within Colliers consists of undertaking market research across both the commercial and residential sectors to aid in the preparation of market reports. Being responsible for the handling of a number of core databases, his work is used in providing analytical support for a range of solutions, both within the organisation and externally. As a current student, Thomas's academic studies in Property and Marketing  allow him to bring a well rounded approach  to his role. 

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