New Zealand industrial market snapshot Q4 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.
- Gavin Read
- Hina Imran
Our real estate market research is based on data from several reputable sources including on-the-ground insights from our own departments.
Vacancy in industrial properties across Auckland, Christchurch, and Wellington generally decreased, while net rents rose slightly per sqm in Auckland and Christchurch, and remained stable for the third consecutive quarter in Wellington. The competitiveness inherent to the industrial sector due to occupier demand, limited new stock in the pipeline, and increasing yields is proof of the ongoing strength in the market for well-located, quality stock. We expect this trend will continue through 2023.
The development pipeline in Auckland and Christchurch remains strong, however as greenfield land is developed, particularly in the Garden City, we expect a similar construction slowdown as seen in Wellington. Despite that, over 50,000 sqm were added to Auckland southern industrial district, which is set to add more than 330,000 sqm of space in the next three years. A tight market will ensure these properties are tightly held upon completion, enhancing demand for new spaces further.
In Christchurch, an important investment market that has been performing consistently in the face of a rising interest rate environment, notable additions to the market for Q4 in 2022 include the new Oji Fibre Solutions warehouse (32,000 sqm) and Sorted Logistics warehouse (11,300 sqm). New builds to add to Christchurch’s strong industrial market include 28,000 sqm of space in Hornby and Woolston, as well as a new Placemakers centre to service the greater Selwyn region.
Some of the questions answered in the latest report include:
- What factors are driving continued demand for industrial space in Christchurch?
- How will rents perform in the capital over 2023?
- What tightly held industrial precincts are experiencing sustained low vacancy?
Find out more below.