Auckland Industrial
Building Consents
Building consent applications have been on the
increase for both the total number of applications and
total value of applications since Q4 2012. There have
been a total of 734 applications since this time to Q2
2015 spread across the office, retail and industrial sectors.
More specifically the industrial sector has averaged 33
applications per quarter, retail at 20 per quarter and
office at 14 per quarter.
Knight Frank understands there to be circa 160,000
sqm of industrial space currently under construction
throughout Auckland plus an additional 112,000 sqm of
space in the pipeline all supporting a continued upward
trend in the supply pipeline.
In Conclusion
The overall outlook on the New Zealand economy is
performing well in many respects and prospects are
looking good at this stage, however there are whispers of
change in the air that we could be approaching the end of
another property cycle. We can only surmise what impact
the general slowdown in the economy, together with the
introduction of the new unitary plan, loan to value ratios
and foreign buyer restrictions will have on the growth of
the Auckland Industrial market. However, with record low
interest rates and a definitive shortage in supply of quality
stock and available land, we expect the market to remain
in positive territory for the short to medium term.
Market Predication
• Pent up demand suggests the industrial
market will remain buoyant into 2017
• Incentives will remain low if at all and will
see more new leases incorporating market
based reviews and a CPI plus 1%-3%
component
• Further tenant and investor speculation
for south of the Bombay Hills
• Increasing pressure on B-Grade
industrial rents to increase from
Prime demand overflow
• Yields will ease under market uncertainty
• Increased demand from Owner Occupiers
as low cost of funds make purchasing
more affordable than renting
Figure 5.
Auckland building consent values - Factories, Industrial & Storage
10,000,000.00
20,000,000.00
30,000,000.00
40,000,000.00
50,000,000.00
60,000,000.00
70,000,000.00
80,000,000.00
90,000,000.00
100,000,000.00
2012 Q4
2013 Q1
2013 Q2
2013 Q3
2013 Q4
2014 Q1
2014 Q2
2014 Q3
2014 Q4
2015 Q1
2015 Q2
Tim Gemmell
Associate Director - Valuation South
Auckland
+64 9 377 3700
tim.gemmell@nz.knightfrank.comGreg Thomson
Research Analyst
+64 9 377 3700
greg.thomson@nz.knightfrank.com© KFNZ Ltd t/a Knight Frank 2015
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information only and not to be relied
upon in any way. Although high
standards have been used in the
preparation of the information, analysis,
views and projections presented in this
report, no responsibilities or liability
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Ltd for any loss or damage resultant
from any use of, reliance on or reference
to the contents of this document.
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