Colliers Portfolio Issue 1 2024

Recent Deals

Pukekohe Mega Centre, 16 Wrightson Way, Pukekohe

Leased by Leroy Wolland

Hotel DeBrett, 2-4 High Street, Auckland CBD

Sold by Blair Peterken, Kris Ongley & David Burley

Unit G, 8 Chonny Crescent, Wiri, Auckland

Leased by Tom Peterson, Mitch Broderson & Edward Washer

Unit P | 451 Ti Rakau Drive, The Hub Botany, Auckland

Leased by Leroy Wolland

78B Richard Pearse Drive, Airport, Auckland

Leased by Tom Peterson, Brad Johnston, Paul Jarvie & Ben Herlihy

Bay 9, 38 Dalgety Drive, Wiri, Auckland

Leased by Mitch Broderson, Tom Peterson, Brad Johnston & Greg Goldfinch

16 The Boulevard, Te Rapa, Hamilton

Leased by Leroy Wolland

1 Amelia Earhart Avenue, Airport, Auckland

Leased by Tom Peterson, Mitch Broderson, Brad Johnston & Paul Jarvie

Colliers Portfolio Issue 1 2024 Contents

04

Top-tier investment in Ellerslie

08

Secure this trophy building | Press House

14

Key Listings

Did you know?

06

Unparalleled passive industrial

10

Prime opportunity in Napier's historic heart

17

Colliers New Zealand Research

Welcome to the first edition of Colliers Portfolio for 2024.

With the summer holidays well and truly behind us, the working year has commenced at a rapid pace and the property market is awash with enthusiasm.

Sentiment has clearly shifted following the change of government and that flowed through to a flurry of transactions late last year around November.

There has been strong levels of sales and leasing activity to start this year and let’s hope that continues throughout 2024.

Speaking to key players within the market there is an overriding belief that there will be higher transaction volumes this year following a sustained period of stable interest rate activity.

Underlying market fundamentals have allowed purchasers to grow in confidence with regards to where investment metrics are tracking, and vendors have a greater appreciation for pricing.

Our latest edition of Portfolio offers an impressive selection of high-quality assets that will catch the attention of a range of buyers.

There are available properties spread across Auckland, Wellington, and Hawke’s Bay among other attractive locations. There is a prime passive investment in the Auckland suburb of Ellerslie with a long-term tenant and a significant development opportunity awaiting those buyers seeking an industrial location in West Auckland, with plenty more in between.

Thank you for your continued interest in Colliers Portfolio, our national sales team looks forward to speaking with you about your property requirements as we climb into a big year ahead.

David Burley

Auckland Director | Investment Sales

4

Iconic Location with Significant Future Upside

5,944m2 Freehold Mixed Use Zoned Site

50 Cawley Street, Ellerslie, Auckland

For sale via Deadline Private Treaty, offers are to be submitted by 4pm on Wednesday 13th March 2024 (unless sold prior).

Holding income of $390,000 + GST + OPEX p.a (from 1st April)

Significant future rental/ development upside

Attractive trade retail/warehouse

Immediate access to motorway & public transport

BusinessMixed Use Zoning

Favourably shaped site on a Freehold title

50 Cawley Street is superbly located just off the Ellerslie-Panmure exit and nestled amongst a diverse commercial and residential catchment near Ellerslie village which has seen significant change in recent years. The property presents a current holding income of $330,000 + GST per annum, with an agreed rental increase to $390,000 + GST per annum from April 1st, 2024 to established tenant ‘Haines Hunter’. The 2,727m2 multi-purpose trade warehouse/retail space is generously placed on 5,944m2 of freehold,

The prime location and mix of under-rented premium warehouse, trade, and retail space make this an attractive investment opportunity not to be missed! Contact the sole agents for further information.

Logan Roach

027 358 9383

David Burley

021 478 225

colliers.co.nz/p-NZL67027218

News

Top-tier investment in Ellerslie

A prominent warehouse, showroom, and retail property in the Auckland suburb of Ellerslie that is occupied by a well-known boat company is being presented to the market for sale, offering buyers the opportunity to acquire a passive investment with a strong tenant covenant.

50 Cawley Street, Ellerslie has 2,727sq m of total floor area that sits on a 5,944sq m site that is zoned Business – Mixed Use Zone under the Auckland Unitary Plan.

Haines Hunter Limited is the tenant and they’re in the middle of a four-year lease that runs until 1 April 2026 and includes three rights of renewal for three years each, leading to a final expiry of 31 March 2035.

From 1 April of this year the annual rental income from their lease agreement will rise to $390,000 plus GST and operating expenses.

Given the location, the property enjoys significant exposure to State Highway 1 and is only 1km away from the centre of Ellerslie offering access to a busy local shopping village.

Colliers Brokers Logan Roach and David Burley have been exclusively appointed to market the property for sale via deadline private treaty closing at 4pm on Wednesday 13 March, unless sold prior.

The original building at the property was constructed in the 1970s with an extension added in 2010.

The warehouse unit measures approximately 1,764sq m, while the showroom, workshop, and office space are in a block that spans 947sq m. There is also a substantial yard and car parking at the property.

The well-maintained buildings have proven serviceable for the existing occupants and can be easily accessed by staff and customers.

Roach, Investment Sales Broker at Colliers, says the highly functional property has all the key fundamentals of an attractive passive investment.

“With a steady rental stream and high-profile tenant that enjoys considerable profile in the Kiwi boating community, this offering will generate strong interest among a wide array of buyers,” Roach says.

“The current occupant has a lengthy lease in place and with the rental income set to increase in April it is the perfect time to secure this property for your portfolio.”

Burley, Auckland Director of Investment Sales at Colliers, says Ellerslie is a desirable suburb for landlords and tenants.

“Strategically located less than 10 minutes from Auckland’s CBD, Ellerslie offers connectivity for those who are based there with access to the motorway network only moments away,” Burley says.

“Auckland Airport is only 14km away, while the Ellerslie shopping village is home to a diverse spread of culinary experiences. Ellerslie seamlessly blends industrial, commercial, and residential sectors and is a favoured choice for those seeking retail, warehouse, and showroom solutions.

“The neighbouring suburb of Mount Wellington is also home to an extensive retail hub, underpinned by the highprofile Sylvia Park shopping centre.”

Roach says given the favourable location of the property relative to the Ellerslie train station, the property could be repositioned or developed in the future.

“With the train station only 750m away, the property benefits from the National Policy Statement on Urban Development, which encourages further intensification of sites within walkable catchments of rapid transit stops.

“While this line of thinking is for buyers with a long-term view it is another compelling selling point that adds to this offering.

“Given the property has current and future appeal, it shapes as a purchasing opportunity that is not to be missed and we encourage all interested parties to contact us immediately.

5 Colliers Portfolio

Premier tenant in popular Wellington industrial location

The land and buildings of a large industrial property in the Wellington suburb of Grenada North that is home to a blue-chip tenant are being presented to the market for sale.

21-35 Takapu Road, Grenada North has 24,764sq m of land area and is held in two freehold titles. The property is zoned Business 2 under the operative Wellington City District Plan.

The property is being offered to the market as a sale and leaseback. Brian Perry Civil, a 100 per cent subsidiary of Fletcher Building, is the tenant and will begin a new lease on settlement.

Fletchers have been on the site for in excess of 20 years. The new lease is for a term of 10 years (plus rights of renewal) indicating the firm’s commitment to the location. The total net annual rental income from the property under the new lease will be $767,130 plus GST. The lease provides for annual rental growth of 3 per cent plus future market reviews.

Sitting approximately 15km north of Wellington’s CBD, Grenada North has become a highly sought-after industrial location due to its accessibility from the motorway network and central position within the region. The key commercial nodes of Seaview, Lower Hutt, and Upper Hutt can be reached within 30 minutes.

Currently there is no vacant industrial property within the Grenada North precinct, according to the latest research from Colliers.

Colliers Brokers Greg Goldfinch, Paul Higgins, Tim Julian, and Kieran Lennon have been exclusively appointed to market the property for sale via deadline private treaty closing at 2pm on Wednesday 6 March, unless sold prior.

The key function of the property is yard, while improvements on the site include an office building, high bay workshop with attached low bay workshop, a steel clad store shed, and a canopy located within the yard area.

Goldfinch, National Director of Industrial at Colliers, says this offering has a strong tenant covenant that will be appealing for buyers.

“Brian Perry Civil’s parent company Fletcher Building is an NZX-listed firm, and they are considered a premier occupant,” Goldfinch says.

“Founded in the Waikato in 1954 and purchased by Fletcher Building in 2007, Brian Perry Civil is one of New Zealand’s pre-eminent civil contractors delivering ongoing large projects, including bridge building and in-ground services.”

Higgins, Director of Industrial at Colliers, says the property is surrounded by established operators who have chosen to set up in Grenada North.

“Well-known commercial firms such as Foodstuffs, Woolworths, and Metro Performance Glass are all in the wider precinct, exemplifying the desirable credentials of the area,” Higgins says.

“The subject property enjoys significant street exposure to Bing Lucas Drive and Takapu Road and has multiple access points providing convenience for the occupants.”

Julian, Associate Director of Industrial at Colliers Wellington, says the combination of strong demand levels, tight market conditions, and an inflationary environment led to robust rental growth in the Wellington industrial market in 2023.

“The industrial property market remains attractive for investors due to the continued demand for space that is seen in New Zealand’s main centres,” Julian says.

“Research from Colliers notes the overall vacancy rate for industrial property in Wellington is only 1.2 per cent and this figure has now held below 2.5 per cent since 2017.”

Lennon, Industrial Sales and Leasing Broker at Colliers, says the subject property has the makings of a highly appealing passive investment opportunity.

“The fact Grenada North has no vacant industrial premises underscores the strong demand for space in this keenly sought area. Investors now have the chance to acquire a highly functional property that has served the existing occupants well,” Lennon says.

6 Colliers Portfolio

Unparalleled passive industrial

Substantial 24,764m² land holding

21-35 Takapu Road, Grenada North, Wellington

For Sale by Deadline Private Treaty closing Wednesday 06 March 2024 at 2:00pm (Unless sold prior)

With very few passive industrial investments offered to the market since 2021 and the prospect of falling interest rates later this year and 2025 we anticipate strong interest in this property from astute investors.

Fletcher is serious about this divestment and has taken our advice - offering a lease with 3.0% automatic upward rent adjustments, a market review at 5 yearly intervals and a fully net lease. Greg

158

This

Enjoying

Hamish

021

021

Press House a sure headline for eager investors

Against the backdrop of all-time low Christchurch CBD office vacancy rates, a local investment company is selling one of its prime properties in the heart of the central city.

Known as Press House, the building is at 156-158 Gloucester Street, in the hub of the Performing Arts Precinct. Behind its replica historic facade is a frameless glass seven-level building that is fully leased.

Colliers Christchurch Managing Director Hamish Doig is marketing the property with Courtney Doig by deadline private treaty, closing 26 March.

Hamish Doig says demand for city centre offices currently outstrips supply, with an acute shortage of available space in prime locations.

He says a change in the vendor’s shareholding meant the preference was to sell and recapitalise.

“This is a lucrative property investment that has served the owners well during their 12-year tenure. During that time, this area of the city has really become established with the opening of the Tūranga library and subsequently Te Pae Christchurch Convention Centre, the strengthening and refurbishment of the Christchurch Town Hall, and the current construction of the Court Theatre.

“It’s a wonderfully light and airy north-facing building, enjoying fantastic views over the city and Victoria Square.

Boundary lines indicative only

Immediately opposite is the Isaac Theatre Royal and bustling New Regent Street, undoubtedly the prettiest street in Christchurch.”

This stretch of Gloucester Street is currently part of a 10week trial to ensure the precinct is ‘people friendly’. The project has involved bench seats and planter boxes, blocks of gold and burnt orange coloured paint adorning the street, and stencils of native nīkau palms to complement the palm trees outside Cathedral Junction.

Completed post 2011, Press House sits on 1,206sq m of land and has a net lettable area of 4,674sq m across its five levels, complemented by two levels of secure parking. Net annual rental is $1,764,915.

There is a head lease in place to a well-known national brand until January 2028, with two four-year renewal options, and subleases to Synlait, Cosgroves, and Global Office.

Doig says the Christchurch investment property market is buoyant with the change in government bringing more certainty and confidence. In March alone, Colliers Christchurch has at least 16 properties slated for auction.

“There’s a really positive mood. We’re seeing new investors coming into the Christchurch market, committing to major purchases, and existing buyers looking for new opportunities.”

Colliers Portfolio

Prime Opportunity in Napier 's Historic Heart Retail and Office Investment

The Bowman Building, 36-40 Tennyson Street, Napier

For Sale by Deadline Private Treaty closing Thu 28 March 2024 at 3pm (unless sold prior)

Fully leased

17

Colliers proudly presents the Bowman Building to the market, a timeless masterpiece in the heart of Napier’s Art Deco Quarter. This fully leased gem features 8 retail tenancies on the ground floor who account for 80% of the total income and 9 offices on the first floor. Friendly CPI and fixed rent reviews, mixed with recent lease renewals from key retail tenants, affirm the sound investment fundamentals on offer. Sitting prominently on Tennyson, Emerson and Market Streets, it's a must see of the Art Deco circuit, with all tenants benefiting from the outstanding location. Seize the opportunity offered by this prime retail location, surrounded by local, national, and global brands. Invest in a piece of Napier's rich history while securing a stable income.

Ash Hames

+64 21 0242 8523

colliers.co.nz/p-NZL67027347

Boundary Lines Indicative Only

Vacant Westgate Industrial + Potential

9,375 sqm Freehold Site

559-567 Don Buck Road, Hobsonville, Auckland

For Sale by Deadline Private Treaty, closing Tuesday 26 March 2024

at 4pm (unless sold prior)

9,375 sqm freehold site

Add value potential – 15% site coverage

Vacant or Short-term lease

Dual Road access - prime location

Light Industry Zoning

Occupiers & Developers must inspect

and ample yard areas. Significant add value potential exists on this 9,375m² freehold site given its very

Strategically positioned on a main arterial route in one of New Zealand’s most rapidly developing regions is this unique opportunity to acquire a recently constructed vacant industrial facility with a large yard component & a functional layout which will suit a wide range of businesses. The current occupier has outgrown the facility and is open to selling as vacant possession or with a short-term lease. Improvements on site feature a modern 1,674m² industrial facility which has been recently constructed low coverage (approx 15%), high profile Westgate location and dual road access. Offerings of this nature are extremely rare and must be seriously considered by all in the market.

Josh Coburn

021 990 691

Shoneet Chand

021 400 765

colliers.co.nz/p-nzl67027445

Matt Prentice 021 464 904

11

559-567 Don Buck Road, Hobsonville, Auckland

Strategically positioned on a main arterial route in one of New Zealand’s most rapidly developing regions is this unique opportunity to acquire a recently constructed vacant industrial facility.

Details on page 11

163 Devon Street East, New Plymouth Large

1,139sqm

Benet Carroll 0210 289 4537

colliers.co.nz/p-NZL67020178

209

For

Courtney

colliers.co.nz/p-nzl67026694

4

For sale via Auction to be held 11am, Wednesday 27th March 2024 (unless sold prior)

Ben Jamieson 021 520 884

Ned Gow 021 122 2731

colliers.co.nz/p-nzl67027472

Popular Neighbourhood Retail Centre

4 Ussher Place, Pakuranga

For Sale by Deadline Private Treaty closing Wednesday 27th March 2024 at 4:00PM (unlesssold prior)

Currently returning $107,563 p.a. + GST and outgoings (including partial vendor underwrite)

Nelson Raines 021 555 673

Strategic Freehold Site of 400m²

Zoned Neighbourhood Town Centre

Ryan Gibb 021 826 421

colliers.co.nz/p-NZL67027597

Prominent Investment

99 Kerrs Road, Wiri

For Sale by Deadline Private Treaty closing Wed 27 March 2024 at 4pm (unless sold prior)

4,295m² freehold site

Hamish West

2,865m² net lettable area

New 8 year lease

Mitch Broderson 021 882 737 021 166 7225

Edward Washer 021 636 189

colliers.co.nz/p-NZL67027475

Unlock market-leading property insights from Colliers. Our monthly reports analyse the changing dynamics of supply and demand for commercial property across New Zealand. Subscribe now to ensure you don’t miss any upcoming reports, including the March edition, which examines the Auckland and Wellington office markets.

WELLINGTON INDUSTRIAL

COLLIERS ESSENTIALS

WELLINGTON INDUSTRIAL COLLIERS ESSENTIALS | 2H 2023

Vacancy rates across the Wellington region’s industrial precincts remained at negligible levels over 2023 The overall vacancy rate was recorded at 1 2% as of November, all but unchanged from the 1 3% reported a year earlier Vacancy rates have now held at below 2 5% since 2017, given the consistently high demand from occupiers and limited new supply A significant easing of conditions in 2024 is unlikely albeit that demand pressures may ease due to the cooling economic backdrop

Vacancy rates across the Wellington region’s industrial precincts remained at negligible levels over 2023 The overall vacancy rate was recorded at 1 2% as of November, all but unchanged from the 1 3% reported a year earlier Vacancy rates have now held at below 2 5% since 2017, given the consistently high demand from occupiers and limited new supply A significant easing of conditions in 2024 is unlikely albeit that demand pressures may ease due to the cooling economic backdrop

Development activity has been dominated by the construction of multiple business parks comprising small commercial units that will likely cater to a diverse range of activities These activities include offices, showrooms, warehousing, online retail distribution and small-scale manufacturing among others Developments in this sector include 'The Works' in Porirua, 'The Quarter' in Seaview, and ‘Imperial Park’ in Petone Colliers is currently tracking just over 29,000 sqm of such developments that have recently been completed or are under construction We estimate that the vacancy rate in this sub-sector was approximately 25% as at November 2023 The development sector will benefit from an easing of the constraints on land supply following the release of some 13ha of land at Manor Park (Te Karearea Business Park)

Development activity has been dominated by the construction of multiple business parks comprising small commercial units that will likely cater to a diverse range of activities These activities include offices, showrooms, warehousing, online retail distribution and small-scale manufacturing among others Developments in this sector include 'The Works' in Porirua, 'The Quarter' in Seaview, and ‘Imperial Park’ in Petone Colliers is currently tracking just over 29,000 sqm of such developments that have recently been completed or are under construction We estimate that the vacancy rate in this sub-sector was approximately 25% as at November 2023 The development sector will benefit from an easing of the constraints on land supply following the release of some 13ha of land at Manor Park (Te Karearea Business Park)

The combination of strong demand levels, tight market conditions, and an inflationary environment, putting upward pressure on outgoings, has resulted in robust rental growth throughout 2023 Average face rents for warehouses increased by approximately 7 8% overall over the 12 months to December 2023, reaching $170 per sqm gross

The combination of strong demand levels, tight market conditions, and an inflationary environment, putting upward pressure on outgoings, has resulted in robust rental growth throughout 2023 Average face rents for warehouses increased by approximately 7 8% overall over the 12 months to December 2023, reaching $170 per sqm gross

The rate of increase is expected to slow in 2024 as tenant demand and inflation ease

The rate of increase is expected to slow in 2024 as tenant demand and inflation ease

Higher interest rates, have led to a recalibration of yields, with average prime yields easing to 6 2% in December from 5 7% a year earlier While a further softening is expected over the first half of 2024 the movement is likely to be limited as interest rates stabilise

Higher interest rates, have led to a recalibration of yields, with average prime yields easing to 6 2% in December from 5 7% a year earlier While a further softening is expected over the first half of 2024 the movement is likely to be limited as interest rates stabilise

PROJECT PIPELINE

PROJECT PIPELINE

Research

New Zealand Research Report | Feb 2024

Sustainability driving change

The growing importance of Environmental, Social, and Governance (ESG) criteria in investment and corporate decisions is a clear drive of change in occupancy results recorded in our latest December 2023 vacancy survey.

There is a growing trend towards higher rated Green Star rated premises, NABERS, and WELL ratings. Mandatory climate-related disclosures that have recently come into force will lead to further company focus on sustainability and how their office space performs and meets sustainability expectations.

Green Star in demand

Since its initial introduction in 2007, there have now been over 260 buildings and fit-out projects certified in New Zealand by the Green Building Council (NZGBC) across the various certifications with just over half in the commercial office sector and around one-third of these in Auckland.

When analysing demand and supply conditions, the disparity between Green Star rated and non-rated premises is evident.

Our latest results show that NZGBC Green Star rated buildings tend to have lower levels of vacant space compared to their non-rated counterparts.

In Auckland, Green Star rated buildings have a vacancy rate of 3.8%, while non-Green Star rated buildings have a vacancy of 15%. In Wellington CBD, it is 2.2% versus 8.0% respectively.

Source: Colliers Research

ESG factors are now integral to strategic business planning, leading companies to re-evaluate their real estate strategies. Investors and tenants are prioritising sustainable practices, Green Star in demand positioning Green Star rated buildings as examples of a pragmatic approach to future business operations.

Not only is demand increasing, but so too is supply. Auckland is leading the charge with approximately 391,830sq m of Green Star rated buildings in the CBD, and 187,236sq m in Wellington. This represents 26.3% and 13.6% of total space respectively.

Source: Colliers Research

From a rental perspective, overall market trends highlight that prime net effective office rental growth is occurring from an increase in face rental growth, as well as a lowering in average incentive levels. Average prime net face rental growth over the past two decades in Auckland CBD has been around 2.1% p.a., with forecasts of annual growth of approximately 3.1% p.a. over the next five years as a result of inflation, the quality of the premises being delivered, as well as an acceptance from occupiers of the cost that higher quality office space requires.

An increasing number of studies on green rental premiums from the UK, US,Canada, and Australia, where a higher volume of data is available for analysis, indicates that rental premiums are typically in the order of between 3% to 12% above non-rated premises, with the variance depending on

the level of certification achieved. While there is a limited amount of data pertaining to rental premiums achieved in New Zealand, as a result of the lower sample size of leases to analyse (albeit increasing), a similar level of premium is likely to apply.

As ESG requirements become more rigorous and New Zealand occupiers’ expectations for sustainability rise, the demand for Green Star rated office spaces is expected to grow. Beyond aesthetics and energy efficiency, the ascent of Green Star rated buildings signifies a strategic

imperative for businesses in a future where sustainability is not a mere option but a crucial prerequisite for success.

Highlighting this importance was the result of a recent survey of occupiers at theCoreNet NZ Symposium.

When asked what the three most important factors driving change in the workplace over the next five years were expected to be, respondents indicated ESG would be the most important (30%), with hybrid working (28%) and location (23%) other key considerations.

20 Colliers Portfolio

Entering the next phase

• The property market has continued to face significant headwinds in 2023; however, greater certainty and clarity have emerged on multiple fronts. Political uncertainty has dissipated following the election, resulting in the installation of a new National-led coalition government. Confidence that interest rates have peaked is growing, supported by data releases indicating easing inflation, a softening job market, and a cooling economy, suggesting that the Reserve Bank has taken sufficient measures to combat inflation.

• Demand in the economy is being boosted by population growth driven by record levels of migration, with the country experiencing a net gain of 128,900 residents in the year to October.

• While transactional activity has remained subdued over the year, a stabilisation in yields leading to a more certain valuation of assets, coupled with improving business confidence, sets the foundation for a lift in sales in 2024.

Office: Quality remains key investors seek value add options

• The flight to quality has remained a persistent theme over 2023 with the bifurcation of office space continuing.

• Hybrid working is steering the reconfiguration of office space, as many businesses reduce their desk count and increase collaboration space.

• High demand for prime quality space and an inflationary environment are putting upward pressure on prime grade rentals with some flow through to better quality B grade space emerging in sought after precincts.

• Development pipelines in Auckland and Wellington are winding down after a period of elevated activity. Future development in both centres will result in a lift in quality rather than quantity, with functionally redundant space being removed from stock.

• Value-add opportunities are proving particularly attractive to investors, given the potential they offer to maximise returns by investors, given the potential they offer to maximise returns by retrofitting existing lower grade assets to achieve higher ESG credentials.

AKL WGTN CHCH

25%

20%

15%

10%

5%

Research 0%

30% 1 H 2000 1 H 2001 1 H 2002 1 H 2003 1 H 2004 1 H 2005 1 H 2006 1 H 2007 1 H 2008 1 H 2009 1H2 0 10 1 H 2011 1 H 2012 1 H 2013 1 H 2014 1 H 2015 1 H 2016 1 H 2017 1 H 2018 1 H 2019 1 H 2020 1 H 2021 1 H 2022 1 H 2023

Retail: Broadening investor appeal

• The embattled retail sector is holding up well considering the challenges it faces. The latest retail vacancy surveys continue to showcase the divergence in demand fundamentals for the varying types of retail.

• Retail demand is receiving strong support from population growth and, within major tourism centres, the return of international visitors.

• Post-pandemic digital fatigue has seen bricks-andmortar stores reclaiming market share driven by the ability to provide personalised experiences and stronger customer engagement.

• Investment activity has been subdued and remains skewed towards the defensive supermarket and large format retail sub-sectors. The stabilisation of yields following a period of repricing, however, will see investor interest broadening over 2024.

Industrial: A short term easing of conditions emerging

• Vacancy rates have held at historically low levels despite the lift in development activity which has been apparent over the last two years. A cooling economy is likely to slow leasing activity, resulting in an easing of conditions. Lease options created by the vacation of space by businesses moving to new premises is being supplemented by sub-lease opportunities.

• The development pipeline is slowing with annual building consent issuance down 22% from the record levels seen in late 2022. Rental growth, after a two-year period of unprecedented increases, is moderating trending back to longer term averages.

• Higher interest rates, a recalibration of yields and a cooling economy have contributed to a slowing in sales activity, the industrial sector, though, remains a cornerstone of commercial and industrial sales activity, comprising just over 45.5% of total sales by value in the year to June 2023.

Featured Brokers

Danny Blair

Director | Hawke's Bay and Taupō

M: 021 826 496

danny.blair@colliers.com

Having worked in commercial real estate since 2006, Danny is a Director and shareholder of Colliers Hawke's Bay and Taupō. Danny has been involved in multiple transactions throughout the past decade, specialising in sales and leasing solutions for corporate tenants, government agencies, investors and developers alike.

Shoneet Chand Director

North Shore

M: 021 400 765

shoneet.chand@colliers.com

Shoneet has been involved in selling investment property for over 13 years and since 2015 he has been a Director in the Investment Sales Team at Colliers, specialising in investment and development sales across the wider Auckland region.

Courtney Doig

Investment Sales Broker

Christchurch

M: 021 991 251

courtney.doig@colliers.com

Courtney has won multiple national awards and is recognised as one of the star performers at Colliers. She is widely respected for her initiative, tenacity, and professionalism. During the past year, she negotiated more than $94 million of investment sales including a diverse variety of commercial buildings and ‘as is where is’ body corporates.

Matt Prentice Director

North Shore

M: 021 464 904

matt.prentice@colliers.com

Matt joined Colliers in 2006 and for the past 6 years has been a Director of the Industry Sales and Leasing team, with a focus on mid to upper end industrial sales and leasing transactions. He is considered a trusted source and wealth of knowledge to both vendors and purchasers, with over 15 years in the industry and hundreds of transactions completed.

David Burley

Director | Investment Sales

Auckland

M: 021 478 225

david.burley@colliers.com

David heads up the Investment Sales team in Auckland, specialising in the sale of commercial property. This is a large team of brokers focused on providing solutions to owners, investors, developers, owner-occupiers, and tenants.

Simon Clark Managing Director

Tauranga

M: 021 959 710

simon.clark@colliers.com

Simon is the managing director of the Colliers Tauranga office. With over 28 years in the industry, he is the most experienced and successful commercial broker in the region. He specialises in the sale of commercial and industrial investments as well as the lease of industrial properties.

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This document has been prepared by Colliers New Zealand for advertising and general information only. Colliers New Zealand does not guarantee, warrant or represent that the information contained in this document is correct.