Vacancy rate rises, but remains below 4%

• The overall industrial vacancy rate for the Auckland region increased to 3.7% in Q4 2025 from 2.8% in Q2 2025, representing a modest rise over the six-month period.
• Vacancy rates stand at 4.0% for Auckland City (+180 bps since Q2 2025), 3.6% for Manukau (+10 bps since Q2 2025), 2.3% for North Shore (+70 bps since Q4 2024), 6.5% for North-West (+180 bps since Q2 2025) and 2.5% for Drury (-30 bps since Q2 2025).

Several large-scale projects underway

• A total of 56,200 sqm of warehouse space was completed across Auckland during the second half of 2025, bringing total stock to over 13.6 million sqm.
• Development activity continues at Drury, where more than 150,000 sqm of new warehouse space is expected by 2028. These include facilities for Briscoes, New Zealand Safety Blackwoods, Metspray, Pet Investments, Zeal Pet Foods, Farmgard and Plumbing World.

Marginal rental growth over the quarter

• Prime rents increased in two of the five precincts, namely Auckland City and North Shore. Prime average net warehouse rents now stand at NZD 198 per sqm p.a., while prime average net combined rents (80:20 warehouse to office ratio) stand at NZD 221 per sqm p.a.
• Across submarkets, prime average net combined rents stand at NZD 228 per sqm p.a. for Auckland City, NZD 224 per sqm p.a. for Manukau, NZD 210 per sqm p.a. for North Shore, NZD 252 per sqm p.a. for North-West and NZD 216 per sqm p.a. for Drury.

Outlook: Frequency of transactions continues to rise

• The industrial sector is increasingly driven by logistics and e‑commerce demand, yet its diversity across manufacturing, construction services, data centres and storage facilities provides crucial depth and resilience to the market.
• Rising business confidence, which is at its highest level since March 2014, and an expanding manufacturing sector suggest an increase in order volumes for logistics, e‑commerce and supply chain occupiers. This is likely to drive demand for larger storage spaces.