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Auckland Industrial Report | First Half 2021

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The Auckland region's industrial vacancy rate increased from 2.1% to 2.2% over the six-month period to February 2021. While up, the latest figures show a slowing in the rate of increase, reflecting the rapid rebound in tenant demand evident since the end of 2020’s national lockdown. Given the strength of the fundamentals supporting the industrial sector and the positive forecasts for the economy, it is increasingly likely that vacancy has now peaked.

 

The year to February 2021 saw approximately 240,000 sqm of new industrial floorspace added to the regional inventory. Building consent issuance slowed in 2020, with 363,690 sqm approved compared with approximately 488,500 sqm in 2019. Ongoing tight market conditions though will incentivise an uplift in development activity.

 

Land values have surged reflecting the shortage of industrially zoned greenfield sites across the region. Average land values across the region reached $910 per sqm in the opening quarter of 2021, an increase of approximately 22% over the last year. Additional impetus for land value rises has been provided by the emergence of demand from the datacentre sector.
 
Investor confidence in Auckland’s industrial sector has rebounded strongly over recent months. Results from the 1Q 2021 Colliers investor confidence survey showed the sector to have registered a net positive (optimists minus pessimists) score of 76%. This confidence has translated into heightened competition for assets driving yield compression with average prime yields tightening from 4.5% to 4.1% over the six months to March.
 
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Auckland Industrial Report | First Half 2021

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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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Chris Dibble

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