Strong demand for space keeps vacancy low

• Overall vacancy decreased by 10 bps to 2.3%. This constitutes Auckland City’s vacancy at 2.7%, Manukau at 2.8% and North Shore at 0.9%.
• Wiri-based snack-food manufacturer Bluebird celebrated the commissioning stage of its new automated warehouse in the quarter, featuring a NZD 26.5 million state-of-the-art automated storage and retrieval system.

The overall region sees +100,000 sqm of stock completions

• Southpark completed two of its significant projects during the last few months. The first is located at 109-136 Hugo Johnston Drive, Penrose, a 70,000 sqm property leased to Mainfreight (Chemcouriers and Daily Freight).
• The second is located at 15-21 Bell Avenue, Mt Wellington. This 8,000 sqm property is leased to Tile Space and has enabled Tile Space to consolidate their distribution centre into a larger, centrally-located site.

Auckland Industrial continues to be the most active commercial real estate market in New Zealand

• Auckland Industrial continues to be the most active commercial real estate market in terms of the number of sales transactions. Not accounting for transactions under NZD 5 million, it recorded more than NZD 60 million in sales during Q2 2024.
• The most significant transaction was the sale of 1, 3 and 7 Inlet Road, Takanini, a 13,067 sqm property, for NZD 26 million. Another significant transaction was the sale of 7 Dent Place, Papakura, a 1,820 sqm property, for NZD 7.5 million.

Outlook: Vacancy stabilises at less than 2.5%

• A few +5,000 sqm properties were vacant in the quarter, especially in the southern precinct; however, this has not significantly impacted the overall vacancy for the region.
• There have been a large number of leasing deals of all sizes that have absorbed most of the vacancy noted at the end of 2023.