Snapshots

Auckland South
industrial market
snapshot 2Q20

August 05, 2020
Demand

Overall vacancy across the Auckland South precincts rose slightly over 1H20, now sitting at 1.6%. The largest change was experienced in the Airport Corridor and Mangere precinct (up from 1.2% to 2.9%). The East Tamaki and Manukau/Wiri precincts both experienced a slight fall in vacancy though to 1.1% and 1.0% respectively. There are noticeably fewer tenants seeking space than in previous quarters but demand remains. As a result offered incentives increased slightly and shorter lease terms were agreed.

Supply

The Auckland South Industrial precinct continues to see the most active development pipeline by a significant margin. The Mangere and Airport Corridor areas in particular have remained popular for new development, with a number of projects underway by Auckland International Airport and Goodman among other developers. Looking forward, we expect projects that are currently under construction will likely go ahead as they typically have pre-committed tenants. However, completion dates are expected to push out slightly given delays during COVID lock-down.

Asset performance

Rents remained stable across both the prime and secondary markets in 2Q20. Average prime rents continue to sit at $167 psm, with average secondary rents remaining at $131 psm. Average prime yields remained at 1Q20 levels of 4.94%, while average secondary yields rose to 6.00%. This represents ranges of 4.63% to 5.25% and 5.50% to 6.50% respectively. Average incentives also rose over the quarter. Prime incentives rose to 3.3% from 3.0% in 4Q19, while secondary incentives rose from 4.2% to 6.3%.

Fill out this form to download all Auckland market snapshots

There was an error submitting the form. Please try again. 

PRIVACY NOTICE

Jones Lang LaSalle (JLL), together with its subsidiaries and affiliates, is a leading global provider of real estate and investment management services. We take our responsibility to protect the personal information provided to us seriously.

Generally the personal information we collect from you are for the purposes of downloading materials you have requested.

We endeavor to keep your personal information secure with appropriate level of security and keep for as long as we need it for legitimate business or legal reasons. We will then delete it safely and securely. For more information about how JLL processes your personal data, please view our privacy statement.