Research

New Zealand industrial market snapshot Q2 2022

JLL’s New Zealand Industrial Market Snapshots provide property insights into how the industrial and logistics market is faring within Auckland, Wellington, and Christchurch.

June 17, 2022

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.

The logistics and industrial property markets in Auckland, Wellington and Christchurch continue to be the most active. Low availability of stock, limited opportunities for development and unrelenting demand continue to push industrial rental rates upward.

In addition to the above, a myriad of additional factors like supply chain issues has seen vacancy maintain record low levels in Auckland’s industrial precincts. With vacancy sitting at around a mere 0.9%, tenants are competing strongly for quality space with prime yields maintaining a historical low from the previous quarter while secondary industrial yields firmed due to the competitive nature of the sector.

The current market conditions in Wellington are tight, with no signs of any relent in the pressure on the extremely low vacancy levels for the foreseeable future. While demand remains high, little is being added to supply with the pipeline bottlenecked by the continuance of rising land and constructions costs as well as the diminishing availability of industrial development land.

While both Auckland and Wellington share a similar story, Christchurch is drawing on its potential to deliver on interest from a wider pool of occupiers and investors capitalizing from a more sustainable and longer-term supply of land. Investors remain interested in Christchurch although new developers will still need to take note of required rentals to provide the appropriate returns to meet investment thresholds.

Some of the questions answered in the latest report include:

  • Are the record low vacancy levels among industrial stock expected to continue? 
  • How will increased interest rates affect the industrial property market?
  • What industrial property developments are in the pipeline for Auckland, Wellington, and Christchurch?

Find out more below.

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