New Zealand industrial market snapshot Q4 2021
JLL’s New Zealand Industrial Market Snapshots provide property insights into how the industrial and logistics market is faring within Auckland, Wellington, and Christchurch.
Our real estate market research is based on data from several reputable sources including on-the-ground insights from our own departments. Reading our property insights from the previous quarter will help to guide your property decisions in the quarters ahead.
Across all three cities (Auckland, Wellington and Christchurch), low availability of stock and limited opportunities for development continue to apply upward pressure on industrial rental rates. Fixed percentage rent reviews are increasingly becoming favoured in all markets when compared to market rent reviews in negotiations for new leases.
In Auckland, strong performance across the Auckland industrial markets has continued to motivate a supply response. With that being said, Auckland industrial market remains tightly held as demand continue to outpace supply.
In Wellington, while interest remains for new or refurbished industrial properties, the inhibiting factors of lack of land for new development and costs for refurbishments are impacting the speed of industrial stock modernisation. In the last three years, for example, between June 2019 to June 2021, Wellington stock base only increased ~1,500 sqm.
In comparison to Auckland and Wellington where land and investment opportunities are increasingly scarce, Christchurch has the potential to draw interest from a wider pool of occupiers and investors benefiting from a better, already identified and longer-term supply of land.
Some of the questions answered in the latest report include:
- Are the record low vacancy levels among industrial stock expected to continue?
- What kind of industrial property yields is the 2021 Q4 market offering?
- In 2021 Q4 have there been any industrial projects added to the pipeline for Auckland, Wellington, and Christchurch?
Find out more below.