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auckland
A lot is happening in the Auckland Industrial
property market that continues to place
stress on a tight burgeoning market.
Overall vacancy sits at 2% making it extremely difficult for
occupiers to find the “right” property to lease or buy, investor
demand is extremely strong pushing yields into unseen low levels.
Positive rental growth and continued yield compression is great for
industrial property owners providing the opportunity to reposition
or sell assets at the peak of a cycle. However, buyers are also
rewarded with continued rental growth and a leasing market
where demand is exceeding supply.
The ongoing investment in South Auckland roading infrastructure
has continued with the much anticipated announcement of the
east to west arterial route connecting State Highway 20 and State
Highway 1 through Onehunga, Penrose and Mt Wellington.
The arterial route will relieve enormous pressure from the existing
roading networks and provide a much needed improvement around
the busy western end of Neilson Street and the increasingly busy
Mt Wellington SH1 motorway Interchange and create a natural link
incorporating business activity from the Industrial areas of
Penrose, Onehunga, the Airport and further south to Wiri.
When considering the Waterview Connection to State Highway 16
and huge redevelopment of Hobsonville to the North West,
Knight Frank believe many occupiers will be prepared to move
beyond the traditional industrial locations within South Auckland.
It’s a land of opportunity and growth driven by low interest rates,
strong business growth and continued investment in infrastructure
albeit tempered by an overheated Auckland residential market,
a supressed diary industry and economic uncertainty within
New Zealand’s main trading partners.
David Arlidge
Director Industrial Sales & Leasing
Phone +64 9 377 3700
david.arlidge@nz.knightfrank.com