Published 5 March 2010
More than 650,000m² of warehouse & factory space around Auckland is lying empty, but Colliers research & consulting director Alan McMahon said this week there were signs the vacancy rate was easing.
“In 12 months, vacancy overall has jumped from 4.8% to 6.7%, but the rate of increase is slowing – 6 months ago it was 6.4%. Already vacancy in some precincts is reducing. We have commented before that industrial is the property asset class that tends to recover first after a downturn, and we think we are seeing signs of that now.”
Colliers’ researchers monitor more than 10 million m² of Auckland industrial property in many precincts, and find significant variations between them: “Manukau is the engine room of te region’s industrial market, with 3.8 million m² monitored, and still has the lowest vacancy of the 3 cities (Manukau, Auckland, North Shore), despite increasing from under 3.8% to 6.3% in the last year. There has been very little new supply, so the increase in vacancy can be largely attributed to businesses downsizing or leaving their premises.
“The North Shore market is mixed, with reductions in Mairangi Bay & North Harbour contrasting with an increase in the Wairau Valley.
“In Auckland City, the central areas of Mt Wellington & Penrose/Onehunga both increased to over 7%, the first time that has occurred for over 7 years, but Rosebank/Avondale to the west declined markedly for the second consecutive 6-month period and is now at 3.9%, the lowest vacancy of all precincts.”
Mr McMahon said vacancy was steady in the Manukau/Wiri precinct, but substantial increases were recorded in East Tamaki (up from 4.8% a year ago to 6.7%) & Airport Oaks/Mangere (up from 5.6% to 9%).
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Attribution: Agency release, story written by Bob Dey for the Bob Dey Property Report.