Hawke's Bay has more than enough industrial land for several decades of growth, says the latest Turley & Co October Industrial Focus Research Report survey.
The report says with 187 hectares of vacant/unoccupied industrial land available, a lack of suitable land cannot be blamed for restraining industrial and commercial property developments in the region.
"Hawke's Bay industrial land is often cited as being under-supplied and supply considerably tightening," the report says.
"That is untrue."
The 187ha of vacant industrial land is in various locations, principally the airport area, Pandora, Onekawa and Awatoto in Napier and in Whakatu, Omahu, Tomoana and Irongate in Hastings.
The land is owned by multiple parties, at least more than 20 and possibly 40, Turley & Co valuer and property strategist Pat Turley said.
It also includes land held by speculators, so some is not available for development. Other land is only partially serviced and may require an on-site water supply, on-site stormwater management involving usable land loss, and possibly on-site sewerage treatment.
"But overall Hawke's Bay industrial land supply is considerable at 187 hectares."
"Some [land] is being held long-term by parties planning to develop it [eg 12ha by Napier Port at Whakatu], by developers awaiting tenant-occupier demand [including Hawke's Bay Airport Limited], and by others as long-term land speculation," Turley said.
"Approximately 50 hectares is available or would be available for development in the near term if matched by tenant occupier demand. Although some land is under-serviced and would require further infrastructure development by the councils in conjunction with land and buildings developers."
Napier City's previously mooted development of Lagoon Farm for industrial and/or commercial uses is also a future supply possibility, the report says.
"Industrial land is often cited as being under-supplied/ supply tightening by a variety of non-council private parties.
"While there is some validity in this, it is broadly well-overstated given 187 hectares of industrial zone vacant land in Hawke's Bay," Turley said.
It is sufficient space for 187 large sheds of 5000sq m covering half the site, the report says.
And at the rate of industrial consents for Napier-Hastings between 2014-2019, the amount of land available represents "probably at least 30 years' supply."
The 187ha includes the Tomoana Food Hub (8.8ha) in the Hastings supply total and the 11ha at Hawke's Bay Airport which is being promoted for industrial occupancy.
The report says exact location is usually not an issue for Hawke's Bay industry.
"Industrial land occupiers are typically open to Hawke's Bay-wide locations such as Irongate and Whakatu. An exclusively Napier location requirement is rare – it's a Hawke's Bay land market."
The report also says that the Hawke's Bay industrial building boom which peaked in 2016-2017 at $104.4 million in industrial consents in Napier-Hastings "has considerably tapered."