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Christchurch Industrial Report | Second Half 2020

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  • Given the more positive market dynamics and low interest rate environment, investor activity remains strong. Prime average yields firmed 33bp between Q3 2019 and Q3 2018.Secondary average yields firmed a further 21bp.
  • Rental rates have quickly stabilised after softening slightly in the first half of the year from the disruption of COVID-19. Competition for tenants from developers promoting design build projects is providing some extremely competitive market rental levels.
     
  • Development activity has eased, with building consent issuance over the 12 months to September approving approximately 181,500 sq m of new floorspace across the region, the lowest figure recorded since 2012. A recent increase in land sales however, may be a lead indicator of a renewed lift in construction activity. 
     
  • Colliers International’s Q320 Investor Confidence survey shows sentiment in the region’s industrial sector has rebounded. The sector registered a net positive (optimists minus pessimists) score of 21 per cent, equalling the Q319 score, and well up from the net positive 5 per cent recorded in the Q2 2020 survey.

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Christchurch Industrial Report | Second Half 2020

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Related Experts

Sam Staite

Director of Industrial

Christchurch (Agency)

Sam is one of New Zealand’s top performing brokers and has consistently been No. 1 in the South Island. Sam leads a team of eight successful and highly experienced agents who each have strong market share in their respective niche markets. He has negotiated the majority of the South Island’s largest industrial transactions during the past 13 years and in the past seven years alone has delivered in excess of $1 billion in sales.

Sam works closely with his colleagues across the AU/NZ Colliers network to ensure the Christchurch commercial market and his clients are widely connected. He works with corporate and private clients who benefit from his in-depth knowledge of the industrial sector, his proactive approach and strong business networks.

Recent highlights include the South Island’s largest industrial sale – the $75m Countdown Fresh Distribution Centre, $53.75m transaction of 13 buildings known as Castle Rock Industrial Park, the $40m sale of Hellers HQ, the $39m sale of Goodman’s Glassworks Industrial Park as well as countless sale and leasebacks for entities such as Turners and Growers, Online Distribution and BOC Gas.

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Gary Sellars

Consultant

Christchurch (Real Estate Management and Valuations)

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Ian Little

National Director | Research

My Colliers priorities focus on supporting the New Zealand network through the provision of research and thought leadership reports, articles and presentations. I draw on over 30 years of experience in the property market, gained in both the UK and New Zealand to my role enabling me to assist a broad range of clients and internal stakeholders. I am a member of the Royal Institution of Chartered surveyors. I am a regular presenter on current market conditions and future trends to the media, clients and various interest groups.

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