There is a critical lack of available industrial premises in some locations.
There is a critical lack of available industrial premises in some locations.
Colliers International launches its fifth and final commercial property portfolio for the year this weekend containing 28 property listings featuring investment opportunities across the industrial, office, rural and retail sectors.
Entitled Colliers Portfolio the publication contains four Home Direct industrial properties as well as large development blocks from Bay ofPlenty to the Mackenzie Country.
"Following on from Colliers' Capital Markets team selling The Millennium Centre to Oyster Property Group for more than $210 million - New Zealand's largest ever commercial office transaction - our Syndications division is now marketing investment parcels in this property to wholesale investors," says Peter Herdson, Colliers national director of Capital Markets.
Herdson says favourable conditions are still a feature of the commercial property market.
"We are experiencing a boost in demand in our office sector, rising sale prices in our industrial sector and a resurgence in retail. All indicators are that the upcoming spending period leading in to Christmas will be the best in a decade for New Zealand retailers.
"Also New Zealand's economic growth and our continuing strength in market fundamentals during this year has outpaced many other countries in the OECD," Herdson says.
Chris Dibble, director of research and consulting at Colliers International says economic growth continues to support the industrial sector which is maintaining business optimism.
"The current outlook suggests 'more of the same' for the industrial market nationwide for the next year," says Dibble.
"We're likely to see vacancy rates reducing even further as tenant demand intensifies," he says. "And a critical lack of industrial premises in some locations around the country is having significant impacts on the market.
"Tenants searching for new or larger space are struggling to find suitable premises to work from, while purchasers are struggling to find good stock to buy. These factors are leading to further decreases in vacancy, increases in rents and yields firming."
Dibble says developers are experiencing constraints in terms of land availability, pricing and suitable infrastructure, as well as increasing material and labour costs.
In the main centres, capacity may become an issue as the pace of construction activity is not sufficient to keep up with demand, particularly in Auckland. "This will keep rents rising steadily," he says.
