Big Christchurch leasing deal

6:26 PM Saturday June 15, 2019 True Commercial

The large property at 15 Sir James Wattie Drive, Hornby, Christchurch was ‘snapped up’. Photo / Supplied

Growing demand for industrial property in Christchurch has resulted in the sector’s biggest leasing deal this year, a month after the previous tenants vacated, says Sam Staite of Colliers International in Christchurch.

Staite says the third-party logistics company had outgrown its previous premises and snapped up 15 Sir James Wattie Drive, Hornby, on a long-term lease.

The departing party was another logistics firm, MOVE Logistics, which has relocated to IPort at Rolleston.

Staite says it is unusual to have such a large property — with total net lettable space of 8000sq m including a 6800sq m warehouse — under contract so quickly.

“At the time it was the largest distribution/logistics facility available for lease in Christchurch, with racking for 10,000 pallets, and was one of the only purpose-built logistics facilities available in the South Island.

“There’s new demand out there for quality space in Christchurch, but a scarcity of stock. The logistics sector is particularly strong, with occupiers looking for high stud and cubic capacity to suit their per pallet cost.”

Staite also negotiated the MOVE Logistics lease. MOVE has completed the first stage of their IPort premises — 10,000sq m of warehousing, 4000sq m of canopy and 400sq m of office space. Stage two, comprising 10,000sq m of warehouse space, is in development.

MOVE’s chief executive Richard Mather says the logistics market continues to grow.

“However there is always focus on how the industry can become more efficient. We are also seeing an increased focus on the impact operations have on the environment.”