The Property

Queenstown’s Industrial and Commercial Market

Following a recovery year in 2021, the Frankton industrial property market is back to virtually nil vacancy and performing well under strong demand. There is a large number of industrial property tenants and purchasers looking for a foothold in Queenstown or Frankton but limited availability of premises to lease or purchase.

With no pipeline of new or existing industrial facilities entering the market that we are aware of, rents are quickly returning to pre-Covid levels – representing an uplift of anywhere between 5% and 10% compared with the low point in 2020.

A shortage of available industrial land, and increasing land values, are causing some yard-based businesses to relocate out to fringe areas as rents increase. The scarcity of land could also present a potential issue for rental car companies looking for storage space as they ramp up their operations back to full capacity.