Big lease deals further reduce available industrial space

1:44 PM Friday October 4, 2019 True Commercial

25 Ha Crescent, Wiri, South Auckland. Photo / Supplied

Some 37,000sq m of space across three warehouses has been leased by Colliers International’s Industrial team, further reducing the availability of large-scale industrial facilities in Auckland.
The leases come as latest research from Colliers shows the prime industrial vacancy rate in Auckland is at a very low 1.49 per cent.
Industrial Director Andrew Hooper says the three recently leased properties are in two of Auckland’s most sought-after industrial areas, where vacancy rates are particularly low.
“Both Mt Wellington and Wiri are premiere industrial locations due to their excellent connectivity, high-quality modern properties and good access to labour,” he says.
“Wiri is a hugely attractive location due to its great motorway connections, proximity to Auckland Airport, and the ease of reaching markets through the Wiri Inland Port.
“Mt Wellington is a centrally located Auckland suburb that is popular with national and international occupiers due to its excellent accessibility and amenity.
“The problem is, space of any size in these areas is almost impossible to find. This is causing huge headaches for occupiers who need to upsize or are nearing end of lease.
“The sooner tenants engage a broker to facilitate their move to a new property, the better in terms of full market coverage and the ability to review options.”
Colliers Industrial Director Brad Johnston says tenants also need to be aware that the extra-low vacancy environment means landlord inducements will be diminished, while rents are likely to continue rising.
“The latest Colliers industrial survey has found prime warehouse rents in Auckland are at an average of $133.8/sq m as at June – up from $127.95/sq m a year earlier.
“Engaging an industrial leasing specialist early will help uncover all possible options.”
The largest of the recently leased properties is located at 25 Ha Crescent, Wiri, South Auckland.
The property has been subleased by Move Logistics, which is able to occupy about half the facility now and the remainder in July 2020.
Developed in 2000, the property features an extensive yard on a 26,357sq m site with Heavy Industry zoning.
The second recently leased property in Wiri is also occupied by a logistics company.
Toll has committed to a lease on Building A, 30 Ash Road, which comprises a 11,373sq m warehouse and office facility on a 15,911sq m site.
The property has a huge 3,385sq m canopy along with a 1,153sq m yard.
The Mt Wellington property has been leased to a leading Australasian corporate tenant.
Building A, 60 Leon Leicester Avenue comprises a 9,268sq m warehouse and office facility on a 13,786sq m site with a 2,184sq m yard.