An unprecedented amount of industrial property construction, sales and leasing activity is currently underway around Auckland Airport in order to meet insatiable occupier demand, according to CBRE New Zealand.
Along both sides of George Bolt Memorial Drive and all the way around the airport, land, infrastructure, warehouses and other developments are taking the area to a new level as demand from major occupiers for well-located and developable logistics and distribution sites near the airport and motorways reaches extraordinary heights.
CBRE has been a dominant leasing force in the airport corridor, having transacted approximately 250,000 sqm of space over the last three years to global companies such as DHL, Fuji Xerox, Agility, and Panalpina, and to local entities such as Eden Office Seating, Hobbs Global Logistics and EuroVintage. This has given the CBRE team unique insight into the area, according to directors Scott Soroka and Claus Brewer.
Soroka says that the main options for companies looking to occupy space start along the eastern side of George Bolt Memorial Drive, where the Westney Road precinct offers predominantly large footprint developments owned by a mixture of private and corporate ownership.
The major facilities in the area have been developed by Goodman, James Kirkpatrick Group Limited (JKGL) and Auckland Airport.
JKGL has recently completed a new 6,660sqm facility at 27 Verissimo Drive and, in the same precinct, the largest A Grade industrial facility currently ready for occupation in Auckland at 81 Westney Road.
Offered for lease by CBRE, 81 Westney Road comprises two facilities (81A and 81B) that provide up to 23,957 sq m of office, canopy and warehouse space with a stud height of 9.8m rising to 14.2m.
Claus Brewer, CBRE’s National Director of Industrial and Logistics, says that the property was constructed by JKGL in 2014. “It is available on a long lease, or a shorter sublease, with the ability to offer flexible sizing.
“With a total yard area of 5,549 sq m, the property offers ample truck turnaround and container storage space, plus a combi-lift working area.
“This property exemplifies - and offers a solution to - the scarcity of large footprint Grade A facilities in the Auckland industrial market. Our research shows that Prime Auckland industrial vacancy now sits at 0.6% and this high stud, tilt slab facility with rapid roller doors, a substantial yard and canopy – and options across two areas – will appeal to the logistics market.
“Whilst there is substantial activity in the industrial market nearly 85% of all new supply has pre-commitment meaning existing or new Grade A facilities are scarce.”
In the precinct, Scott Soroka, Director at CBRE specialising in the airport corridor, is also marketing 23 Timberly Road for lease. Of the four developed units completed in July 2016, there are two remaining warehouses with 9.5 metre stud height, good canopies and designated carparks.
To the north western part of the Westney precinct, Auckland Airport’s prestigious The Landing industrial park is already home to a number of the world’s largest third-party logistics (3PL) and logistics companies, including, DHL, Hellmann World Logistics, DSV and Agility.
The Landing offers the latest in large-scale master planned industrial environments for, Logistics and other organisations to lease major distribution facilities, says Brewer.
”Auckland Airport has applied the latest and best of international design at The Landing. Landscaping, parks and sites are attracting multinationals to establish large, high quality distribution facilities here, and large local and global organisations with scale and calibre are becoming a significant presence here.
“New roads have been going in for the next phase of development, and there is land ready for development with services in place. In addition, plans to create a commercial centre with cafes and amenity will only increase its attraction.”
At the far border of The Landing, anchored by a giant Sistema facility, is the 25-hectare Auckland International Business Park; another new precinct where CBRE is active in negotiating contracts for significant occupiers, with all land now sold.
Soroka says that companies can own and occupy in this location. “This is a popular option, given the low interest rate environment. Owner occupiers are clamouring to find land to build facilities in this precinct.
“It makes great sense for companies looking to own their property to buy here on the edge of The Landing, with its landscaping and many amenities.”
Historically the airport precinct has grown at a greater pace than the economy says Brewer, and a growing population will only sustain the trend.
“By 2030 almost 2 million people are expected to live in Auckland. Although there’s great debate about where they are going to live, we ask: where will they work, and where will the products they consume be stored?”
“The airport is only going to grow: new runways, new terminals, new retail and industrial precincts are all being created. With the airport handling just over 17 million trips a year and likely to hit 25 million by 2025, the focus on the area will only intensify.
“This accessibility will only be enhanced by the opening of the Waterview Connection and the completion of the grade separation project at Kirkbride Road, effectively creating a motorway to the airport. It is not surprising that major retailers are looking to create major distribution centres in the area due to the size of the sites and the proximity to the motorways.
“The new spec builds set to be created over the next 12 months will only fuel continued interest in these areas, and particularly along the Auckland Airport corridor. So, if anyone’s considering the airport corridor and would like to know more about their options, they should give us a call.”
Media Contact:
Dieter Lund
Marketing Manager
New Zealand Marketing & Communications
T: +64 9 359 5351 | M: +64 21 932 577
dieter.lund@cbre.com
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CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate investors and occupiers through more than 400 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.