Industrial & Logistics Issue 02 | 2022
A Strategy to Grow Your Business How Online Distribution has doubled its business annually for the past three years
How Auckland’s industrial vacancy pinch is benefitting the Waikato
Why Christchurch occupiers aren’t afraid to be timid
CLICK THROUGH
The impact of skyrocketing land values in Penrose
Contents
01
Letter From the Editor
02
In-Market Penrose/Onehunga
03
In-market Hamilton/Kirikiriroa
04
Auckland Land Values and Vacancy Rates
05
In-Market Christchurch/Ōtautahi
06
Christchurch Land Values and Vacancy Rates
CLICK TO SECTION 2 | IN––––SPECT
Letter From the Editor Welcome to our second edition of Inspect as we close out the first half of 2022.
The themes of Just-in-Case logistics, the flight to quality or flight to function, remain at the forefront of decision making for occupiers. The impacts of inflation and the associated measures of correction have time to play out, being bold and decisive is creating opportunity and growth for business. We talk to Greg Managh and Ben Evans of Online Distribution about why a focused and deliberate property strategy has helped propel their business and ensure the best success for their clients and customers. A strategy to mitigate against overflow pressure and to navigate challenges by implementing a proactive and nimble approach is proving advantageous for occupiers with vision. The scarcity of land in Christchurch and Auckland are holding land values firm, Jeremy Brown in Christchurch echoes similar sentiment to Alex Hopkinson and Henry Smit in the tightly held geographies of Penrose and Onehunga. With pressure on land values, low vacancy and strong demand in the Auckland market, Kate van der Zeyden speaks to the resilience and optionality of the Waikato. The Industrial & Logistics team at CBRE want to help you lead the market rather than react to it, so please reach out to us as we close out H1 2022.
Claus Brewer National Director Industrial & Logistics
Industrial & Logistics | 1
Value Location & Quality 50 Morrin Road Mount Wellington
Rarely do opportunities arise with the ability to lease a large central Mt Wellington warehouse with large sealed containerfriendly yard. The 4,357sqm warehouse has drive-through ability with multiple roller doors on each side of the building. 50 Morrin Road also benefits from 55 on-site car parks.
Key Property Information
Mt Wellington is the pre-eminent industrial location in Auckland being only a 15-minute drive from the CBD, with the option of two motorway interchanges and high volume traffic arterials in addition to its close proximity to main sea, air and freight ports.
Chad Greer
Alex Hopkinson
022 650 8044 chad.greer@cbre.co.nz
021 071 5244 alex.hopkinson@cbre.co.nz www.cbre.co.nz/SAK100086
2 | IN––––SPECT
Area Type
Area Size
Warehouse
4,357sqm
Office/Amenities
417sqm
Mezzanine
57sqm
Canopy
1,686sqm
Yard
6,200sqm
"Industrial distribution facility available June 2022" Available Q2 2022
Large sealed yard
Container friendly yard
Multiple roller doors
Industrial & Logistics | 3
709 Great South Road Penrose
Brand New in Penrose This brand new building will comprise clear span, 10.5 metre stud warehousing, corporate grade offices and an immaculate showroom. The warehouse will be accessible via two roller doors with 16 on-site car parks to service the property. 709 Great South Road is available June 2022.
Area Type
Area Size
Warehouse
1,124sqm
Office
224sqm
Canopy
216sqm
Yard
620sqm
www.cbre.co.nz/SAK100037
Alex Hopkinson
Henry Smit
021 071 5244 alex.hopkinson@cbre.co.nz
027 881 3462 henry.smit@cbre.co.nz www.cbre.co.nz/186265072Q3
17 Industry Road Penrose
Sought After Warehouse to Office Ratio This due to be refurbished functional high stud warehouse/ workshop is located just off Great South Road with easy access to the main arterial motorways. The property benefits from a large secure partially-sealed yard and road frontage car parking.
www.cbre.co.nz/SAK100074 4 | IN––––SPECT
Area Type
Area Size
Warehouse
1,095sqm
Office
392sqm
Yard
2,327sqm
Henry Smit
Alex Hopkinson
027 881 3462 henry.smit@cbre.co.nz
021 071 5244 alex.hopkinson@cbre.co.nz
818 Great South Road Penrose
High Profile on Great South Road Available soon for lease is this well presented functional warehouse and office premises in a high profile Penrose location. This corner site provides excellent road frontage and ample car parking on-site. Penrose is a popular industrial hub that has ease of access onto SH1 and SH20 and is within close proximity to Auckland CBD and Auckland International Airport.
Key Property Information
Alex Hopkinson
Henry Smit
021 071 5244 alex.hopkinson@cbre.co.nz
027 881 3462 henry.smit@cbre.co.nz
Area Type
Area Size
Warehouse
1,891sqm
Office/Showroom
444sqm
Yard
700sqm
www.cbre.co.nz/SAK100104 Industrial & Logistics | 5
In Market
Penrose/ Onehunga
Early leases and sales achieved in Q1 have been in-line and consistent with values of Q4 2021. Current interest rate hikes and overall global economic factors could however, result in some cooling off for investment assets. The industrial market has been under significant pressure from occupiers and investors alike over the last two years. With further increases in the OCR on the horizon further increasing the cost of borrowing, investors will be more conservative in relation to the yield they are willing to accept. Current leasing stock is scarce and warehousing between 500-1,000sqm seems to be particularly sought after. Timeframes for finding suitable sites to meet tenant requirements have been pushed out significantly so we encourage tenants to be putting feelers out and looking for appropriate sites well in advance. There has been a real emphasis on warehousing throughout the pandemic, as occupiers have had to hold more stock due to delays with arrival of materials and increased pricing. Prime vacancy was 0% in December for Penrose and Onehunga, highlighting a very tight market, with Secondary vacancy also reducing since the onset of the pandemic. Land values in Penrose are skyrocketing, illustrated by the fact they are now more than 2.5 times what they were five years ago. The Central Corridor, and Penrose in particular, has a relative lack of available land. This
6 | IN––––SPECT
ultimately pushes new development activity towards Brownfield solutions and in turn pumps the brakes for growth due to the limited availability of this product. Significant inflation within the building industry is having an impact on the rents developers are seeking in order for developments to remain feasible, meaning occupiers need to ensure the facility is highly efficient. New build industrial warehouse rates increased from $145psqm to $175psqm+ over the last 12 months, representing an approximate 20% increase. One thing remains certain though in these very uncertain times: the focus for occupiers remains high for properties with strong fundamentals and in some instances they are having to compete in a tender-style bidding environment to secure the right solution.
Alex Hopkinson
Henry Smit
021 071 5244 alex.hopkinson@cbre.co.nz
027 881 3462 henry.smit@cbre.co.nz
20K Cain Road Penrose
Modern Warehouse & Office The property comprises of a clear span warehouse, tidy office/showroom over two levels and ample on-site car parking. The property is located on Cain Road which provides extremely convenient access to SH1 and Great South Road.
Area Type
Area Size
Warehouse
130sqm
Office
252sqm
Car Parks
12
Henry Smit
Alex Hopkinson
027 881 3462 henry.smit@cbre.co.nz
021 071 5244 alex.hopkinson@cbre.co.nz
www.cbre.co.nz/SAK100050
50 Saleyards Road Ōtāhuhu
Excellent Profile Warehousing Located in a high profile position in Otahuhu this modern industrial facility comprises of a 6.2 - 8 metre high stud warehouse, tidy office, amenities and ample secure car parking. The property is located on the corner of Saleyards Road and Station Road within close proximity to SH1 and main arterial routes.
Area Type
Area Size
Warehouse
726sqm
Office/Showroom
239sqm
Warehouse/Storage
1,071sqm
Car Parks
26
Nick Tyler
Chad Greer
021 341 223 nick.tyler@cbre.co.nz
022 650 8044 chad.greer@cbre.co.nz
www.cbre.co.nz/SAK100076 Industrial & Logistics | 7
44 Bancroft Crescent Glendene
Excellent Overflow Yard Secure this opportunity to lease a secure and fully fenced, well priced yard space in West Auckland. The site consists of a 4,900sqm metalled yard zoned for Heavy Industry and available for occupation now. A neighbouring 3,650sqm yard shares the same access way and allows for someone to take both or one site as required.
Area Type
Area Size
Yard
4,900sqm
Luke Goldstone
Luke McGill
021 147 7400 luke.goldstone@cbre.com
021 0220 8889 luke.mcgill@cbre.co.nz www.cbre.co.nz/SAK100097
16 Akatea Road Glendene
Affordable Metalled 3,650sqm Yard This affordably priced fully fenced and secure metalled yard and warehouse offers unbeatable access to the North Shore and Auckland CBD. 16 Akatea Road shares access way to a neighbouring 4,900sqm yard that allows for one or both sites to be taken as required.
www.cbre.co.nz/SAK100096 8 | IN––––SPECT
Area Type
Area Size
Yard
3,650sqm
Warehouse
750sqm
Luke Goldstone
Luke McGill
021 147 7400 luke.goldstone@cbre.com
021 0220 8889 luke.mcgill@cbre.co.nz
SOLD
SOLD
SOLD
SOLD
SOLD
SOLD
SOLD
SOLD SOLD
SOLD
SOLD
16 Gateway Park Drive Pōkeno
Unmissable Compact Units Gateway is a light industrial development of affordable, small to medium sized units in Pōkeno. Featuring robust construction, soaring stud height, tall roller doors and truck-friendly access, 16 Gateway seeks to fill a gap in the market with all the benefits of a large industrial warehouse in a compact footprint. It is a high-growth precinct not to be missed.
Key Property Information
Chad Greer
Vinay Patel
022 650 8044 chad.greer@cbre.co.nz
021 382 525 vinay.patel@cbre.co.nz
Area Type
Area Size
Warehouse
318sqm
Office
104sqm
Canopy
20sqm
Stud Height
8 metres
www.cbre.co.nz/21182551Q4 Industrial & Logistics | 9
34 Airpark Drive Māngere
Brand New With Great Exposure On offer to lease is this brand new A-Grade 13 metre plus stud warehouse, with open plan office and amenities. With over 80 metres of George Bolt Memorial Drive exposure this property will be passed by over 40,000 cars per day. The property benefits from its close proximity to the inland port, air freight and highways. Due for completion in early 2023 and ready now for you to secure the last remaining industrial site with scale, for lease with George Bolt Memorial frontage.
Key Property Information Area Type
Area Size
Warehouse
5,117sqm
Office
400sqm
Canopy
600sqm
Yard
2,442sqm
Brand new A-grade warehouse
George Bolt Memorial Drive frontage
Light Industry Zoning
www.cbre.co.nz/186230122Q4 10 | IN––––SPECT
Alex Divers
Claus Brewer
021 715 385 alex.divers@cbre.co.nz
021 656 650 claus.brewer@cbre.co.nz
16 Rupeke Place Henderson
15,000sqm Yard Offering Flexibility Located in Henderson Valley in a well established industrial hub. This site is positioned at the end of the cul-de-sac with easy access through a wide driveway. This yard is metalled, fenced and gated and is available now. There is also a possibility here for design and build lease options and to have the yard split into smaller segments.
Area Type
Area Size
Land
15,000sqm
Luke Goldstone
Luke McGill
021 147 7400 luke.goldstone@cbre.co.nz
021 0220 8889 luke.mcgill@cbre.co.nz
www.cbre.co.nz/199063752Q3
111A Kerwyn Avenue East Tāmaki
High-Quality Warehousing in East Tāmaki 111A Kerwyn Avenue is a high quality warehouse and office unit within Highbrook Business Park, boasting high stud warehouse and 29 on-site car parks. This property offers profile in a key location and is available for occupation from July 2022.
Area Type
Area Size
Warehouse
1,673sqm
Office
299sqm
Canopy
148sqm
Warehouse Office
226sqm
Mezzanine
128sqm
Lewis Watson
Vinay Patel
021 845 484 lewis.watson@cbre.co.nz
021 382 525 vinay.patel@cbre.co.nz
www.cbre.co.nz/SAK100067 Industrial & Logistics | 11
Artist Impression Only
Access
Location, Flexibility, Design
Nestle Frucor Suntory
Wiri Logistics E
South-Western Motorway
Main Trunk Line
16
N
Henderson
Roscommon Road
Inland Port
Mount Albert
Polarcold New Lynn
20
Mount Roskill
Wiri Station Road
Wiri Logistics Estate
Fuso
Waitakere Ranges Regional Park
Puketutu Island
Orora Group
Auckland Airpor
Wiri Logistics Estate Wiri
Visy
7
This opportunity is located at Auckland’s logistics and distribution epicentre with the Southern-Western Motorway and Roscommon Road intersecting direct road access to estate. Take advantage of the neighbouring Wiri Inland Port which offers container storage and truck shuttle services to and from the Inland Port and seaports avoiding congestion and delays. Join NZ Post, Woolworths, Hilton Foods, Martin Brower, Synnex and Kiwi Logistics in this market-leading estate. Options to have a single or two warehouses designed and built in circa 18 months on the last remaining lot within the LOGOS Wiri Logistics Estate.
Claus Brewer
Paul Steele
021 656 650 claus.brewer@cbre.co.nz
021 494 111 paul.steele@cbre.co.nz www.cbre.co.nz/19300031Q3
12 | IN––––SPECT
Key Property Information: Design & Build Area Type
Area Size
Site
41,781sqm
Warehouse options
9,000sqm 25,000sqm
“Design & build options available from 9,000sqm to 25,000sqm” Artist Impression Only
Prime Wiri location
Flexible options available on request
Wiri Logistics Estate
Unprecedented location to main arterial routes
Wiri Inland Port
700m
Ready for occupation in circa 12 months
Industrial & Logistics | 13
High Profile Logistics Facilities
Key Property Information: JG1 Area Type
Area Size
Warehouse
6,984sqm
Office
400sqm
Canopy
1,803sqm
Yard
1,101sqm
Car Parks
50
JG1 & JG2, 9 Jerry Green Street Wiri With market-leading stud height JG1 and JG2 provide excellent cubic efficiency but also excellent profile to SH20, showcasing your brand to the marketplace. The two facilities have been designed for logistics with full drive-around and multiple areas for all-weather loading via canopy and breezeway provisions. JG2 offers access to three elevations perfect for FMCG throughput. These two warehouses have immediate access to SH20 and SH1, providing exceptional distribution links to Auckland’s main arterial routes, Auckland Airport and the Inland Port and Port network.
Claus Brewer
Paul Steele
021 656 650 claus.brewer@cbre.co.nz
021 494 111 paul.steele@cbre.co.nz www.cbre.co.nz/SAK100001
14 | IN––––SPECT
Key Property Information: JG2 Area Type
Area Size
Warehouse
11,001sqm
Office
500sqm
Canopy
2,155sqm
Yard
4,022sqm
Car Parks
72
“High quality consented industrial warehouses” Close proximity to SH20 and Auckland Airport
Drive around access
Brand new build due December 2022 Clearance at the knee of: JG1: 13.09m | JG2: 12.38m and 16.75m to the ridge
Industrial & Logistics | 15
A Strategy to Grow Your Business
In Issue #2 of Inspect, our article Winning the Overflow Storage War in a Tight Market introduced Online Distribution, a family-owned organisation providing expert 3PL warehousing and supply chain solutions locally and globally with a footprint in Christchurch and Auckland. Four years ago, they began to implement a future property strategy looking 10 years ahead, focused on building capacity and ability to meet the increasing needs of their clients and locating themselves close to transport partners. This has seen the business double every year for the last three years. Inspect sat down with Greg Managh, Chief Executive to discuss how they have benefited from partnering with CBRE, creating a strategy that delivers results and providing confidence in growth.
16 | IN––––SPECT
Creating a successful mix Managh admits, “We knew if we didn’t create a capacity pipeline quickly, we risked constraining the organisation and our clients. As a family-owned business our approach needed to be professional and well researched. This in turn provided the confidence, support, and financial backing to commit to leases and grow alongside our clients”
The early days of growing Online Distribution’s New Zealand property footprint was nothing short of white-knuckling
One key aspect Managh attributes to the success of their property strategy has been the appointment of their board of directors. “They look at the strategy and issues professionally and offer advice which provides confidence amongst the shareholders who can actively see the growth that the strategy is delivering on. There is obviously normal commercial caution, but we wouldn’t have been able to double our business three years in a row without the board’s backing. “Remaining flexible is a key part of the assurance our board require. We need to showcase that if growth plans don’t come to fruition, we have the ability to switch strategy. It’s a bit like a chessboard and we are always looking at how the pieces line up and work together up to 10 years into the future.”
The explosion of last-mile delivery
The early days of growing Online Distribution’s New Zealand property footprint was nothing short of whiteknuckling, Managh says, “We originally had just two major sites in Auckland and in 2018 we saw the need to begin growing this region. This was in response to our customers becoming more successful which led to space pressure and required us to have a strategic intent on growing our property portfolio. “It was baby steps as we realised we needed to get ahead of the market, but the industrial sector was already incredibly tight, even back then. Working closely with Claus Brewer from CBRE we began to pinpoint locations we wanted to grow our organisation in. He assisted our renegotiations of current leases delivering a clear message to landlords of our intent on growth once the lease expired. This communicated we were serious about our capacity requirements and pipeline and was one of the important outcomes of several successful negotiations.” This deliberate growth has meant Online Distribution is planning out the next 6-10 years of how their property footprint will evolve and how their facilities will work together. As their property strategy has evolved it has seen them establish credibility and become important clients to the likes of LOGOS, Goodman and Christchurch International Airport Limited.
What has underpinned the uptick in growth within the 3PL market over the last few years is COVID. “There has been an enormous spike in last-mile delivery and half of our organisation is now dedicated to that type of business,” says Managh. “We sell our expertise in infrastructure and capacity, and offer an economic solution to our clients so they don’t have to do the distribution work themselves. As they grow it leads to a higher requirement of space, and our strategy has allowed us to scale quickly – the growth in the last few years has been unforeseen by our customers but thanks to our forward-planning, we have the ability to deliver on this.” An example of how much this sector has developed in the last two years is evident through the changing customer mix at one of Online Distribution’s South Auckland warehouses. Managh explains, “This is a 4,000sqm space where we originally serviced approximately 30 customers. In six months, we will only have two customers based here taking the whole warehousing space. It shows the absolute necessity of creating and implementing a capacity pipeline without which we simply wouldn’t be able to service our clients properly.”
Greg Managh Online Distribution
Industrial & Logistics | 17
It’s not just about the lease It’s not just about finding the warehousing capacity and signing a lease. Organisations must have key components lined up that are aligned with growth plans. Managh warns, ”If you don’t get an equipment order in well ahead of requirement, you will end up with a new Distribution Centre but have no racking or machinery to actually make it happen. All of this takes business confidence and planning to achieve.” “Two years ago, we were dipping our toe in the industrial sector leasing market and couldn’t find anything that worked for us – as an organisation we have now flipped 180 degrees and I’m always looking at what’s out there, how does it work with our future strategy, how will it set us up to deliver more for our clients. CBRE has played an integral role in this with Claus presenting to our board, helping us negotiate leases and continually looking at how to grow our presence in line with our strategy. It’s been essential to have strong partnerships in place with him, our transport partners and others and these have been critical as we implement our strategy now and into the future.” Ben Evans, founder and major shareholder says “Having a great leadership and governance team and a proven premium market positioning sets us up for an incredibly exciting future. This not only benefits our clients, but provides career opportunities for our expanding workforce” Managh adds, “We’re making commitments and backing our future to enable our client’s growth because of our capabilities. We have got ambitions for our property requirements over the next 1020 years and given the speed of change within our sector it is crucial to have the right advisors like CBRE alongside us. Online Distribution is an intergenerational company that will continue to grow, adapt, and be a long-term leader in this industry. “The thirst for scale from the latest ecommerce wave has further endorsed the concept of third-party logistics. Our experience, people, digital solutions and these lease commitments provide the confidence for successful brands to join our family and grow alongside us.”
18 | IN––––SPECT
It’s not just about finding the warehousing capacity and signing a lease. Organisations must have key components lined up that are aligned with growth plans.
A & B, 147 Kirkbride Road Māngere
Value Location & Quality The 147 Kirkbride Road development is located in close proximity to major arterials, in an area that benefits from a diverse mixture of national and international industrial tenants, together with an ever increasing commercial, retail and hospitality presence. This facility will benefit from a host of sustainability led features such as; rain water harvesting, solar panels and battery storage, EV charging, LED lighting, use of recycled materials and will get its power supply from a provider that generates 100% renewable energy. Take advantage of being positioned at the northern end of the Māngere/Airport Oaks industrial precinct, which has exposure to the large local residential catchment, has ease of access to the facilities during peak hours and benefits from great public transport links.
Key Property Information: Building A Area Type
Area Size
Warehouse
10,805sqm
Office
360sqm
Canopy
3,100sqm
Yard
1,500sqm
Key Property Information: Building B
Claus Brewer
Alex Divers
021 656 650 claus.brewer@cbre.co.nz
021 715 385 alex.divers@cbre.co.nz
Area Type
Area Size
Warehouse
9,260sqm
Office
360sqm
Canopy
1,870sqm
Yard
1,500sqm
www.cbre.co.nz/196665011Q4 Industrial & Logistics | 19
Prime Rail, Air & Motorway 259 James Fletcher Drive Ōtāhuhu The LOGOS Otahuhu Logistics Estate is strategically located within the established industrial precinct of Otahuhu. The location offers logistical advantages due to its close proximity to rail and motorway networks for ease of access to sea and inland ports as well as Auckland International Airport and the CBD. This high-spec warehouse is currently under construction due for completion Q2 ready for your business to join the prominent neighbouring companies such as Toll, Pacific Steel, Online Distribution, Steel Tube, NCI, General Motors and Mainfreight.
Claus Brewer
Chad Greer
021 656 650 claus.brewer@cbre.co.nz
022 650 8044 chad.greer@cbre.co.nz www.cbre.co.nz/20122708Q2
20 | IN––––SPECT
Key Property Information Area Type
Area Size
Warehouse
20,400sqm
Office
1,200sqm
Canopy
4,557sqm
Yard
8,399sqm
Lot 4
“High spec warehouse available Q2 2022”
Auckland CBD
Otahuhu Logistic
Southern Motorway
Prime Central location
Metro Port
Por 16
Office over two levels
Railway
Newm
Henderson Mount Albert
Mainfreight Transport L’Oreal
Great access to SH1 and SH20 New Lynn
Pacific Wire
Kaka Street
NZ Chemical Care
20
Mount Roskill
O
Tanker Engeneering
James Fletcher Drive Waitakere Ranges Regional Park
Pacific Steel NZ
Stud height of 13.4 metres to the knee
Puketutu Island
Sims Metal
Otahuhu Logistic Estate
Auckland Airport Steel & Tube
Savill Drive
Industrial & Logistics | 21
Efficiency & Flow
Key Property Information: PD1 Area Type
Area Size
Warehouse
8,290sqm
Office
420sqm
Canopy
1,692sqm
Yard
2,565sqm
Car Parks
50
PD1 & PD2, 90 Pavilion Drive Airpark, Māngere 90 Pavilion Drive has been planned and designed to allow for truck flows and functional logistics, manufacturing and warehousing. Thought has been given to appropriate office to warehouses ratios and leading design to ensure maximum cubic capacity and operational efficiency and flow. The facilities are in a sought after Airpark location with proximity to Auckland Airport and key arterial routes. These high spec buildings that are targeting a Greenstar NZ rating will be ready for occupation in early 2023, and the owner (Fernbook) is engaging with occupiers now.
Claus Brewer
Alex Divers
021 656 650 claus.brewer@cbre.co.nz
021 715 385 alex.divers@cbre.co.nz www.cbre.co.nz/SAK100003
22 | IN––––SPECT
Key Property Information: PD2 Area Type
Area Size
Warehouse
5,200sqm
Office
317sqm
Canopy
899sqm
Yard
1,840sqm
Car Parks
36
“High quality consented industrial warehouses” Close proximity to SH20 and Auckland Airport
Drive around access
Brand new build due early 2023 Clearance at the knee of: PD1: 12.68m | PD2: 13.385m and 16.75m to the ridge
Industrial & Logistics | 23
Auckland Industrial Land Values
North Shore $1,200/sqm GLENFIELD
TAKAPUNA
Indicative values only ($/sqm) MASSEY
Hobsonville $1,200/sqm
AUCKLAND
Rosebank
GREY LYNN
NEWMARK
HENDERSON
$1,250/sqm AVONDALE
ONEHU
Airport $1,200/sqm
24 | IN––––SPECT
Land values remain high with opportunity for acquisition remaining scarce.
WAIHEKE ISLAND
Mt Wellington
KET
$1,300/sqm
HOWICK
Penrose PENROSE NGA
$1,600/sqm
East Tāmaki EAST TAMAKI
$1,200/sqm
MANGERE
Wiri $1,300/sqm WIRI
Industrial & Logistics | 25
Auckland Vacancy Statistics
North Shore 0% Vacancy
GLENFIELD
TAKAPUNA
MASSEY
AUCKLAND
Rosebank Henderson
GREY LYNN
0.8% Vacancy
NEWMARK
HENDERSON
2.2% Vacancy
AVONDALE
West Auckland 2.4% Vacancy ONEHU
Mā Airport 1.6% Vacancy
26 | IN––––SPECT
Sustained low vacancy is requiring the occupier market to move swiftly and source creative solutions for overflow.
WAIHEKE ISLAND
Mt Wellington
KET
0.5% Vacancy
HOWICK
Penrose
East Tāmaki
PENROSE NGA
0.9% Vacancy
Ōtāhuhu
āngere
0% Vacancy EAST TAMAKI
0.3% Vacancy
0% Vacancy
MANGERE
Wiri 0.2% WIRI Vacancy Industrial & Logistics | 27
Design & Build Options at Ruakura Ruakura Superhub Waikato The Ruakura Superhub is positioned at the nexus of the Golden Triangle, with immediate access to efficient roading networks and rail. Underpinned by the development of the Inland Port, a joint venture between Tainui Group Holdings and Ports of Tauranga. This commercial hub is set to become one of New Zealand’s most sought after destinations for industrial and logistics users. The Superhub spans over a massive 490 Hectares, and provides opportunities to occupy space in a variety of precincts. Options are filling up fast so act now to secure your space in one of New Zealand’s most efficient industrial and logistics parks.
Claus Brewer
Kate van der Zeyden
021 656 650 claus.brewer@cbre.co.nz
021 295 2171 kate.zeyden@cbre.co.nz www.ruakura.co.nz
28 | IN––––SPECT
Key Property Information Area Type
Area Size
Design build options
5,000sqm+
SUPERHUB
"Revolutionising the importance of place" Fastest growing industrial and logistics hub
Occupation and design flexibility
Options in the precinct filling up fast
High volume road, rail and sea networks
Industrial & Logistics | 29
In Market
Hamilton/ Kirikiriroa
The effects of the Auckland industrial vacancy pinch are having flow on effects to the rest of the country and posing operational questions for occupiers being priced out of the market. The Waikato is now more connected to the wider New Zealand supply chain network than ever, providing transport optionality and resilience via road and rail. Largescale occupiers such as Big Chill, PBT and Maersk have secured their spot in the in-demand Ruakura Superhub, as well as numerous land acquisitions in other locations from Northgate Business Park through to Titanium Park by Hamilton Airport. The influx of occupiers is evident when looking at the number of job advertisements in the manufacturing, logistics and transport category making it the second largest labour pool for the Waikato region. A common theme we are hearing from occupiers when weighing up geographical and operational variables, is that businesses are now formulating property requirement plans on a much longer-term basis than ever before. Occupiers can no longer absorb seasonal overflows into existing leased footprints, meaning large-scale supply chain network reviews
30 | IN––––SPECT
are more important than ever to identify growth profiles. While supply continues to play catch up in the Golden Triangle, we surmise that demand will grow further in these regions. The balance of the year will see more speculative developments within the Waikato come to market following the lingering after-effects of COVID supply chain issues, which have wreaked havoc on developers. These aftereffects will also continue to increase build costs and push out build periods. As a result, we also expect continued rental growth with rising construction and debt costs to continue for the balance of the year.
Kate van der Zeyden
Claus Brewer
021 295 2171 kate.zeyden@cbre.co.nz
021 656 650 claus.brewer@cbre.co.nz
Building 2, 25 Link Drive Rolleston
Purpose Built Bulk Storage Available Situated in Rolleston’s IZone Business Hub, this high stud warehouse offers roller door access and a large, concreted yard. This sublease opportunity is designed for grain or fertiliser storage up to eight metres with a density of 750kg/m3.
Key Property Information Area Type
Area Size
Warehouse
2,744sqm
Yard
1,750sqm
Stud Height
9 metres
Scott Bentley 027 203 3310 scott.bentley@cbre.co.nz
www.cbre.co.nz/CCH100015 Industrial & Logistics | 31
95 Orbell Street Sydenham
Versatile Showroom & Warehouse Well-located in Sydenham is this modern, functional mix of warehouse, office and showroom space the perfect new location for your business.
Key Property Information Area Type
Area Size
Warehouse
200sqm
Office
108sqm
Showroom
146sqm
Car Parks
5
Located on the corner of Orbell and Disraeli Street, this opportunity offers exceptional profile as well as easy access to the CBD, Brougham Street and Moorhouse Avenue. 95 Orbell Street is located on a fully fenced site providing security and peace of mind. Available for lease at $73,000 per annum + GST and outgoings.
Container height roller door
Fully secure and fenced site
Close to main arterial routes
www.cbre.co.nz/CCH100010 32 | IN––––SPECT
Brigit Hamilton
Jeremy Brown
021 353 341 brigit.hamilton@cbre.co.nz
027 506 0430 jeremy.brown@cbre.co.nz
In Market
Christchurch/ Ōtautahi
Quarter 1 of 2022 has seen the sub-1,500sqm industrial market tighten further in Christchurch. Occupier movements, ongoing supply chain issues and a delay in new stock being presented, has combined to see vacancy rates of industrial properties fall to a 3.19% market average. There has been a flurry of activity in the first part of 2022 with occupier movements increasing. Marketed properties have seen high enquiry rates and fast sale/lease turnarounds, as occupiers have not been timid to move if they see potential for new efficiencies. Notably, there has even been uptake of secondary and non-prime industrial premises throughout the wider Christchurch area. Ongoing supply chain issues and market uncertainty have seen occupiers choose to increase their storage capacities. Demand for increased storage, combined with the influx of occupier movements, has created pressure on rental levels and further driven vacancy rates down. New lease terms for storage facilities have tended to be shorter in nature in the uncertain climate; meaning there could be an increased movement in the latter half of the new year as these expire. There is a distinct lack of quality tenanted investment stock being brought to the market, which has made stock of this nature even more tightly contested. New stock is not expected to come to market in 2023 until which
time the low vacancy rate is expected to continue. Interest rate pressure threatens 2022 yield levels. Whilst investment appetite has generally not abated, sales achieved are certainly less frequent than what was witnessed in Q3 and Q4 of 2021. Vacant possession sales numbers have also slowed leading would-be owner occupiers back to exploring leasing or development options rather than purchasing existing premises. Industrial land sales have seen continued momentum, with strong prices achieved for the last remaining lots in two of Ngāi Tahu’s industrial subdivisions. Tawhiri in Rolleston has now sold down entirely, whilst there has also been a flurry of activity in Hornby’s Kairua development.
Jeremy Brown 027 506 0430 jeremy.brown@cbre.co.nz Industrial & Logistics | 33
491A Waterloo Road Islington
Profile! Showroom & Warehouse Fantastic aerial connections South via the motorway and North via the northern by-pass. This property is located close to local amenities, Hornby Mall and local cafés within the business park. A brand new high stud showroom faces the road to take advantage of the large traffic count in this area. The property is supported by good car parking/display yard and of course its excellent location.
Area Type
Area Size
Warehouse
1,000sqm
Showroom
300sqm
Canopy
150sqm
Land
1,450sqm
Nathan O’Neill 021 288 2707 nathan.oneill@cbre.co.nz www.cbre.co.nz/C467213
Unit 6, 50 Dakota Crescent Wigram
Smart Wigram Industrial Sublease Available now for immediate sublease is this well-presented premise in the heart of Wigram. This property comprises a high stud warehouse with a container height door and adjoining north-facing modern office spread over two levels. Located within close proximity to main arterial routes offering easy access to all parts of Christchurch.
www.cbre.co.nz/CCH100070 34 | IN––––SPECT
Area Type
Area Size
Warehouse
294sqm
Office
126sqm
Mezzanine
35sqm
Car Parks
8
Jeremy Brown
Nathan O’Neill
027 506 0430 jeremy.brown@cbre.co.nz
021 288 2707 nathan.oneill@cbre.co.nz
190 Maces Road Bromley
Ideal for Large Yard Occupiers This property is well positioned next to Charles Luney Business Park on Maces Road, close to the main arterial ring road (SH74) of Christchurch. This is a rare opportunity to lease a medium-sized warehouse/workshop with an open plan office split across two levels with an expansive amount of yard space fronting onto Maces Road.
Area Type
Area Size
Warehouse
750sqm
Office
250sqm
Yard
4,700sqm
Stud Height
5 metres
Scott Bentley 027 203 3310 scott.bentley@cbre.co.nz
www.cbre.co.nz/CCH100049
39 Shands Road Hornby
Secure Versatile Warehouse This modern industrial warehouse includes two large roller doors, complemented with offices, amenities and off-street parking. This versatile building is fully fenced and secure, fronting onto the busy Shands Road, within close proximity to Hornby Hub, Mitre 10 Mega and main arterial routes.
Area Type
Area Size
Warehouse
287sqm
Office & Amenities
94sqm
Mezzanine
94sqm
Land
766sqm
Brigit Hamilton 021 353 341 brigit.hamilton@cbre.co.nz www.cbre.co.nz/CCH100046 Industrial & Logistics | 35
Christchurch Industrial Land Values Indicative values only ($/sqm)
N Airport $350/sqm
Sockburn $400/sqm
Hornby $375/sqm
36 | IN––––SPECT
Middleton $430/sqm
The Christchurch industrial market remains strong with strong demand for well located industrial land
Northcote $300/sqm
Phillipstown $450/sqm
Bromley Sydenham $150/sqm $600/sqm
Industrial & Logistics | 37
Christchurch Vacancy Statistics
N Airport 4% Vacancy
Sockburn 11.8% Vacancy
Hornby 2.6% Vacancy
38 | IN––––SPECT
Middleton 3.2% Vacancy
Industrial rentals have firmed with a lack of stock and an owner occupier and investor appetite for modern well let premises under pinning the market
Northcote 4.5% Vacancy
Phillipstown 10.5% Vacancy
Sydenham
Bromley 2.1% Vacancy
1.5% Vacancy
Industrial & Logistics | 39
Large-Scale Distribution Facility 45 Produce Place Islington This property consists of two high stud warehouse buildings connected via a large tunnel canopy running along the length of each building. Complemented by a well-appointed office/ amenity spaces and a large, sealed yard (with truck wash) which can accommodate numerous containers and trucks. This is all located on a very secure and wellpresented site in Hornby within close proximity to SH1, providing easy access for all vehicle types.
Scott Bentley
Nathan O’Neill
027 203 3310 scott.bentley@cbre.co.nz
021 288 2707 nathan.oneill@cbre.co.nz www.cbre.co.nz/13092021
40 | IN––––SPECT
Key Property Information Area Type
Area Size
Warehouse
10,477sqm
Office
409sqm
Yard
12,231sqm
Land
25,995sqm
“Large pallet capacity will appeal to occupiers”
13,000sqm pallet space
40 container spaces
Double width canopy
Excellent truck access
Industrial & Logistics | 41
8 Wigram Road Middleton
Industrial Configured to Suit This attractive, well-positioned property is located in Middleton, close to Blenheim Road, Birmingham Drive and main arterial routes.
Key Property Information Area Type
Area Size
Warehouse
73sqm
Office
507sqm
Car Parks
15
Our motivated landlord is prepared to alter the configuration of the building to suit a new tenant, providing a larger warehouse capacity and reducing the office space. A great parking area is provided with 15 car parks, a full-height roller door and the property can be fully fenced if required.
Lockable storage room
Communications/data room
Heat pumps in all areas
www.cbre.co.nz/CCH100072 42 | IN––––SPECT
Brigit Hamilton
Jeremy Brown
021 353 341 brigit.hamilton@cbre.co.nz
027 506 0430 jeremy.brown@cbre.co.nz
57B McSaveneys Road Marshland
Impressive Warehouse in Idyllic Setting This modern industrial warehouse with a large yard sits in an idyllic setting in Marshland, with easy access to main arterial routes. The warehouse includes five electric roller doors, three-phase power, office and up-to-date amenities including a shower, toilets, and kitchen facilities.
Area Type
Area Size
Warehouse
408sqm
Office & Amenities
42sqm
Yard
850sqm
Separate Sheds
54sqm
Brigit Hamilton 021 353 341 brigit.hamilton@cbre.co.nz
www.cbre.co.nz/CCH100052
3/81 Magdala Place Middleton
Modern Warehouse in Excellent Location Available now for lease is this well-presented premise in the popular Middleton industrial area within close proximity to Blenheim Road and the Southern Motorway. This northfacing property provides a functional mix of warehouse and office space with a container height roller door.
Area Type
Area Size
Warehouse
238sqm
Office
106sqm
Car Parks
7
Jeremy Brown 027 506 0430 jeremy.brown@cbre.co.nz www.cbre.co.nz/1CCH100043 Industrial & Logistics | 43
Key Property Information: Unit 2A & 2B
Blenheim Road Profile Unit 2A & 2B 455 Blenheim Road, Sockburn This opportunity is located on the corner of Blenheim Road and Curletts Road, Middleton. The site provides an accessible address with signage opportunities to allow for maximum brand exposure to high traffic volumes. The industrial warehouse and office/showroom property benefits from dual access via the Blenheim Road lay-by or Cable Street at the rear of the property providing easy access for heavy vehicles. The high stud warehouse is accessed through five container high roller doors and supported predominantly by a single-level office/showroom with heat pumps.
Nathan O’Neill 021 288 2707 nathan.oneill@cbre.co.nz www.cbre.co.nz/CCH100068 44 | IN––––SPECT
Area Type
Area Size
Unit 2A & 2B Office/ Workshop Unit 2A & 2B Warehouse
629sqm 2,890sqm
Key Property Information: Unit 2A Area Type
Area Size
Warehouse
1,415sqm
Office/Workshop
435sqm
Key Property Information: Unit 2B Area Type
Area Size
Warehouse
1,475sqm
Office
194sqm
“Ample car parks & great brand exposure” This tenancy can be split offering separate options: Unit A – Warehouse 1415sqm and Office /Showroom 435sqm Unit B – Warehouse 1475sqm & Office 194sqm Both tenancies enjoy the exposure and high traffic volumes of Blenheim and Curries Road.
Industrial & Logistics | 45
IPORT Business Park Rolleston
LPC MIDLAND PORT
Design/ Build Lease Options
Pallet Drive
Cargo
12
Drive
STAGE
11
Container Drive
Transportation Drive
Link Drive
STAGE
IPort Drive
Factory Drive
IPort Drive
Freight Drive
Indicative Overbridge Location
Key Property Information IPORT Business Park is a $500 million industrial and logistics park located on 122 hectares of prime industrial zoned land in Rolleston. This development is set to revolutionise freight movements and increase efficiency for importers, exporters and logistics companies in Canterbury. IPORT is well situated between Jones, Hoskyns and Maddisons Roads on the western side of SH1 and the main truck railway line. IPORT offers the opportunity to position your business next to or close to LPC’s Midland Port operations in a new purpose-built facility developed by the landowner on a lease back basis. This part of the owner’s development provides a total land area of approximately 30 hectares of industrial zoned land on a design-build and lease basis.
Area Type
Area Size
Land
1,000 - 50,000sqm+
Proximity to LPC Midland Port
30 hectares available Design build options from 1,000sqm to 50,000sqm+
Scott Bentley www.cbre.co.nz/784523091 46 | IN––––SPECT
027 203 3310 scott.bentley@cbre.co.nz
20 Gasson Street Sydenham
Prime Location & Profile This property provides a versatile mix of warehouse space alongside a well-appointed showroom and office with the added benefit of rear space and plenty of off-street car parking. As well as offering an excellent profile, this property is easily accessed via Brougham Street, providing great connectivity to the CBD and other main arterial routes.
Key Property Information Area Type
Area Size
Warehouse
460sqm
Office
210sqm
Yard
160sqm
Jeremy Brown 027 506 0430 jeremy.brown@cbre.co.nz
www.cbre.co.nzCCH100035 Industrial & Logistics | 47
111 Mowbray Street Waltham
City Fringe, Secure Yard Space On offer is an excellent opportunity to lease a 6,888sqm site positioned on the fringe of the city. Situated on the corner of Mowbray Street and Wilson Road in Waltham close to main arterial routes, this secure yard is ideal for unmanned storage.
Area Type
Area Size
Land
6,888sqm
Scott Bentley 027 203 3310 scott.bentley@cbre.co.nz www.cbre.co.nz/82647318
55 Mcteigue Road, Halswell
Perfect Position, Wigram Yard 1.68Ha of Business Park Zoned land is now available for sale or lease. Positioned off Owaka Road in Wigram, the location provides excellent access to the Southern Motorway through to the CBD, Lyttleton port and airport. Currently finished in hardfill provides an all-weather surface.
Area Type
Area Size
Land
1.6879Ha approx.
Nathan O’Neill 021 288 2707 nathan.oneill@cbre.co.nz www.cbre.co.nz/CCH100038 48 | IN––––SPECT
19 Hannover Place Rolleston
Occupier Motivated to Move This property offers a high stud warehouse facility with drivearound vehicle access, a fully concreted yard and multiple roller door access. The premise includes a modest-sized dispatch office with a staff cafe and amenities at the front of the building, providing visibility to the main entrance gate. Situated in Rolleston and 1.3km off SH1, 19 Hannover Place is located in the fast-growing IZone Industrial Hub, designed for large-scale warehousing and manufacturing, 15 minutes south of Christchurch.
Key Property Information
Scott Bentley
Hamish Clarke
027 203 3310 scott.bentley@cbre.co.nz
021 960 655 hamish.clarke@cbre.co.nz
Area Type
Area Size
Warehouse
5,416sqm
Office
101sqm
Canopy
574sqm
Land
11,900sqm
www.cbre.co.nz/77992210 Industrial & Logistics | 49
Contact one of our specialists
Auckland
Claus Brewer
Bruce Catley
Paul Steele
Lewis Watson
Chad Greer
Alex Divers
National Director 021 656 650
Managing Director 021 729 004
Director 021 494 111
Director 021 845 484
Director 022 650 8044
Director 021 715 385
Alex Hopkinson
Luke McGill
Vinay Patel
Henry Smit
Kate van der Zeyden
Nick Tyler
Director 021 071 5244
Associate Director 021 0220 8889
Senior Negotiator 021 382 525
Senior Negotiator 027 881 3462
Senior Negotiator 021 295 2171
Senior Negotiator 021 341 223
Luke Goldstone
Hetu Shah
Rebecca Taylor
Keri-Anne Khau
Negotiator 021 147 7400
Negotiator 021 800 538
Marketing & Ops 021 133 4757
Marketing & Admin 027 857 9756
Christchurch
Hamish Clarke
Scott Bentley
Nathan O’Neill
Jeremy Brown
Brigit Hamilton
Ruby Bain
Director 021 960 655
Associate Director 027 203 3310
Associate Director 021 288 2707
Negotiator 027 506 0430
Negotiator 021 353 341
Agency Support 021 225 6407
CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008) The information in this document is general in nature and is a guide only. It does not take into account your individual circumstances. Before acting you should check the accuracy of the information and seek your own independent financial and legal advice. The information must not be relied upon to make any investment decisions. The principal and its agent will not be liable for your failure to verify the information or seek appropriate advice.