8 Dec 2014

Auckland industrial rent rise predicted

2:00 pm on 8 December 2014

A leading property market watcher expects rents for Auckland industrial space to grow by between 1 and 3 percent a year.

Commercial consultants Colliers says high demand and low availability for property and better business conditions are combining to allow landlords to raise their prices, in what would be the first rent rise since the global financial crisis.

Auckland property

Rents for Auckland industrial spaces are expected to rise Photo: Photo NZ

Colliers says demand for Auckland's prime space is running hot and in some pockets of the city all properties are full.

The lack of options opens up a new construction phase, the consultanting firm says, but there are problems such as rising building costs and a delay of up to four month for some materials, including huge concrete slabs.

The company's Industrial Research Report for 2014 concludes expansion will most likely be in south Auckland, where more land is available.

In Wellington, 5.6 percent of the industrial space is empty. Colliers predicts healthy times ahead for the region's economy, with a number of roading projects under way.

And in Christchurch, the post-earthquake industrial sector continues to grow, with the vacancy rate shrinking and approvals being granted for new-build commercial properties.

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