Christchurch industrial property market goes from strength to strength
Growing demand for industrial property in Christchurch has seen the sector’s biggest leasing deal this year signed just a month after the previous tenants vacated.
The third-party logistics company had outgrown its previous premises and snapped up 15 Sir James Wattie Drive, Hornby, on a long-term lease.
The departing party was another logistics firm, MOVE Logistics, which has relocated to IPort at Rolleston.
Sam Staite, the Industrial Director at Colliers International in Christchurch, said it was unusual to have such a large property – with total net lettable space of 8,000sq m including a 6,800sq m warehouse – under contract so quickly.
“At the time it was the largest distribution/logistics facility available for lease in Christchurch, with racking for circa 10,000 pallets, and was one of the only purpose-built logistics facilities available in the South Island.
“There’s new demand out there for quality space in Christchurch but a scarcity of stock. Demand is coming from new businesses coming into the region and others that are expanding.
“The logistics sector is particularly strong, with occupiers looking for high stud and efficient cubic capacity to suit their per pallet cost.”
Staite also negotiated the MOVE Logistics lease, which, in turn, was the biggest Christchurch industrial leasing deal in 2018.
MOVE has completed the first stage of their IPort premises – 10,000sqm of warehousing, 4,000sq m of canopy and 400sq m of office space. Stage two, comprising 10,000sq m of warehouse space, is in development.
“MOVE’s design build is the largest for a logistics company in many years and allows them to be ideally positioned next to the inland port.”
Chief Executive Richard Mather said MOVE was continuing to expand.
“The logistics market continues to grow, however, there is always focus on how the industry can become more efficient and more productive. We are also now seeing an increased focus on the impact operations have on the environment.
“The new site makes a lot of sense for our customers who are importing and exporting goods out of Lyttelton Port Company. There are significant benefits to being located next to the inland port including financial and also environmental.”
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