Skip to main content Skip to footer

Colliers Essentials | Christchurch Industrial Report | 2H 2021

Download Report
Christchurch Industrial 2021  1535 x 1040
  • Demand for industrial workspace across the Canterbury region has held at high levels, driven by growth within the logistics, manufacturing and wholesale trade sectors. Leasing options remain limited, particularly for high quality premises. 
  • The development sector remains active, albeit having slowed from the peak levels witnessed between 2013 and 2016. Over the year to September 2021, building consents were issued for the construction of 189,020 sqm of new industrial workspace, up slightly on the figure recorded in 2020, but behind the 10-year average of 231,475 sqm. 
  • Land value appreciation accelerated in recent months with prime land commanding up to $375 per sqm, up from approximately $300 per sqm at the start of the year. The increase in values reflects a tightening of land supply, with localised shortages arising for the first time in many years, potentially a factor in the slowdown in development activity.
  • Rental rates have remained stable with prime grade warehouse space commanding $100-$120 per sqm and offices between $220 – $250 per sqm. Upward pressure on rentals is anticipated over the year ahead due to the combination of tight market conditions, increased building costs and inflation.

  • Investment activity is constrained only by a lack of product being brought to market. Prime yields have tightened again over the last year with sales generally reflecting a yield of between 4.5%-5%, sharper for smaller premises. Local investors are increasingly having to compete with out of region investors who see Christchurch located property as offering excellent investment fundamentals.

Find the link to download and view the report below, or CLICK HERE to view more Colliers Insights.

Christchurch Industrial 2021  1024 x 972

Colliers Essentials | Christchurch Industrial Report | 2H 2021

Download Report
Related Experts

Chris Dibble

National Director | Colliers Partnerships, Research & Communications

Auckland CBD

Chris Dibble oversees three key business units at Colliers New Zealand - Colliers Partnerships, Research and Communications.

Colliers Partnership priorities focus on support initiatives that drive collaboration, best practice learning, cost efficiencies, and growth opportunities across the wider Colliers franchise network.

As the head of research for Colliers, Chris oversees the collaboration and delivery of award-winning research reports. He is a regular presenter and market commentator, often discussing the latest insights on current and future property trends.

Chris also leads  PR and communications for Colliers. He works with in-house and external writers to curate an audience-focused content delivery strategy. 

With over 15 years of experience and university qualifications in economics, geography, marketing and property, Chris provides a multi-disciplinary approach that assists a broad range of clients and internal stakeholders.

View expert

Ian Little

Associate Director | Research

Auckland CBD

My Colliers priorities focus on supporting the New Zealand network through the provision of research and thought leadership reports, articles and presentations. I draw on over 30 years of experience in the property market, gained in both the UK and New Zealand to my role enabling me to assist a broad range of clients and internal stakeholders. I am a member of the Royal Institution of Chartered surveyors. I am a regular presenter on current market conditions and future trends to the media, clients and various interest groups.

View expert

Thomas Smeed

Research Analyst | Research

Auckland CBD

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. 

View expert

Sam Staite

Director of Industrial

Christchurch (Agency)

Sam is one of New Zealand’s top performing brokers and has consistently been No. 1 in the South Island. Sam leads a team of eight successful and highly experienced agents who each have strong market share in their respective niche markets. He has negotiated the majority of the South Island’s largest industrial transactions during the past 13 years and in the past six years alone has delivered in excess of $830 million in sales.

Sam works closely with his colleagues across the AU/NZ Colliers network to ensure the Christchurch commercial market and his clients are widely connected. He works with corporate and private clients who benefit from his in-depth knowledge of the industrial sector, his proactive approach and strong business networks.

Recent highlights include the South Island’s largest industrial sale – the $53.75m transaction of 13 buildings known as Castle Rock Industrial Park, the $39m sale of Goodman’s Glassworks Industrial Park as well as countless sale and leasebacks for entities such as Turners and Growers, Online Distribution and BOC Gas.

View expert

Gary Sellars

Director, Registered Valuer

Christchurch (Real Estate Management and Valuations)

View expert