North Shore industrial vacancies at pre recession levels
Aerial photo of North Shore industrial area
Strong leasing activity in the North Shore precinct has driven vacancy levels back to low levels last seen in 2006, says JLL’s latest Pulse report on the Industrial North.
“This year has witnessed strong results for the industrial property sector with re-pricing for prime assets being driven by strong investor sentiment. Strong occupier demand has likewise driven vacancy to levels last seen before the recession,” the report states.
Growth in the northern industrial market continues to remain strong on the back of an expanding construction and retail sector along with a growing population base in the area.
JLL Research says the benefit of more modern space combined with growing suburban markets is leading to strong overall net absorption.
“North Shore vacancy levels witnessed the largest decline, with both large and small tenants moving into most North Shore precincts. The sharpest decline in vacancy levels was seen in the North Harbour precinct with a number of tenants including Hydroflow, IEBOS and Eldex Packaging all moving into the precinct and driving vacancy under 4 per cent.
With vacancy falling to structural levels, demand is sufficient to drive further development over the North Shore Industrial precincts.
Developments in Albany, Rosedale and Mairangi Bay are under way and more are projected in line with increasing demand.
Land supply is limited in areas such as Wairau Valley and this will also likely have an impact on rents in the medium term, the JLL report says.
JLL graphic showing dropping industrial vacancy levels on the North