Vacancy rate edges up slightly to 4.0%

• Occupier demand in Auckland’s industrial market in 1H26 softened slightly, with the regional vacancy rate increasing by 30bps from 3.7% to 4.0%.
• The industrial supply pipeline is expanding, broadening the range of options available to occupiers. This is likely to keep vacancy slightly elevated in some precincts in the near term, until firmer economic conditions and business growth absorb the new space.

Major projects anchor the next supply wave

• During the first half of 2026, approximately 42,415 sqm of new warehouse space was completed across Auckland, taking the region’s total industrial inventory to nearly 13.7 million sqm.
• There are a number of industrial developments in the pipeline, with an expected 798,430 sqm of projects currently being monitored.

Broad rent growth, incentives tick up

• Prime average net combined rents climbed from NZD 222 to NZD 225 per sqm p.a., up 1.4%.
• Prime incentives rose to 6.3%, while secondary incentives remained steady at 8.3%. Both are projected to stay at these levels for the remainder of the year before gradually reverting to lower long-term averages.

Outlook: Sector outperformance continues as yields hold

• Auckland’s industrial sector continues to demonstrate resilience and remains one of the more sought-after asset classes within the commercial property market, despite ongoing economic and financial pressures.
• Although logistics and e-commerce demand remain key drivers, the sector’s strength is also underpinned by a diverse occupier base spanning manufacturing, construction-related businesses, data centres and storage operators.