Vacancy rate increases but is still sub-3%

• The overall industrial vacancy rate for the Auckland region increased to 2.8% during H1 2025 from 2.4% in H2 2024, representing a 42 bps rise over the six-month period.
• In the medium-term, the Auckland regional vacancy rate is expected to remain around 3.0%, highlighting a slightly higher level of vacant space availability, albeit still below long-term averages.

Several large-scale projects under construction

• Total industrial supply increased over the H1 2025 reporting period and is now at 13,572,000 sqm. There remains a significant pipeline, with approximately 610,400 sqm under various stages of development, earmarked to be completed by December 2027.
• Development activity continues in Drury, where more than 150,000 sqm of new warehouse space is expected to be delivered over the next three years. These include facilities for some well-known Kiwi brands such as Briscoes and NZ Safety Blackwoods.

Rents unchanged in the quarter but forecast to increase before year-end

• Prime and secondary average net combined rents stand at NZD 217 per sqm, p.a. and NZD 179 per sqm, p.a., respectively.
• Due to forecast increases in rents for Manukau and North Shore, prime average net combined rents are expected to increase by 3.4% between now and Q4 2025, to reach NZD 225 per sqm, p.a. by year-end.

Outlook: Volume of transactions expected to rise further

• Auckland industrial remains the most active commercial real estate sector. There was over NZD 652.59 million in sales transactions of NZD 5 million or more during 2025 so far, which we project will increase as a result of data reporting lags.
• Activity is increasingly driven by logistics and e-commerce, but the sector’s diversity across manufacturing and construction services plays an integral component to the sector’s depth, as do data centres and storage facilities.