Auckland industrial vacancy rates doubles
September 3rd, 2009
The amount of untenanted industrial building space in Auckland has doubled over the past year which is likely to have flow-on effect in terms of freight volumes generated within the country’s industrial base. New research from property analysis company DTZ reveals in the year to June 2009 it rose 2.8 percentage points which leaves a total of 5.5% of all industrial buildings in the region sitting empty. In June 2008, the rate of vacant industrial space in Auckland was just 2.7%.
DTZ’s survey looked at 7.8m square metres of industrial space of which 3.3m is in Manukau, just over 3m in Auckland City and 1.4m on the North Shore. Manukau City’s vacancy, up 0.6 percentage points on the previous year to 3.6%, fared better than expected. This is likely the result of Fonterra taking in excess of 25,500sq m of industrial space for milk powder storage. The majority of vacancies in Manukau City occurred in East Tamaki and Airport Oaks areas, including Schenker International exiting its 4,261sq m space at Airport Oaks and Gold Link Storage & Distribution and Alto Plastics leaving an 8,854sq m space on Ormiston Rd. Manufacturing is the largest tenant category in Manukau, taking up 40% of space, with transport and storage close behind with a 28% market share.
All precincts of Auckland City experienced an increase in vacancy but Onehunga suffered the most, tripling the scope of its empty industrial space. In the year to June 2009 vacancies in the area rose 5.4 percentage points to 7.8%. Penrose vacancy doubled in the year to June 2009, up by 2.3 percentage points to 4.1%. Both prime and secondary grade spaces in North Shore experienced increased vacancy. The Wairau Valley area had the most significant gain with a 7.8 percentage point rise to 9.2%. The vacancy rate on the North Shore is the highest at 8.7%, due to all the recent builds in Albany which real estate agents are now struggling to fill.
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