Smaller transactions driving Christchurch industrial deal flow

Christchurch businesses are pushing ahead with property decisions at the smaller end of the industrial market, where transaction activity is continuing at healthy levels despite subdued business confidence nationally.

Jeremy Brown, Associate Director of Industrial & Logistics at CBRE, said there is an underlying motivation among many local industrial property occupiers contemplating moving to new premises to act now rather than wait.

“Despite the impacts of the Middle East conflict, the election and poor business confidence nationally, many small to medium-sized business owners are making the decision to get on with plans to purchase or lease new premises.”

Brown and the CBRE Christchurch industrial & logistics team has concluded a significant number of transactions of industrial properties under 500sqm so far this year, alongside larger property deals.

Many of these smaller-scale deals have been to owner occupiers in a variety of sectors including trades, small manufacturing, logistics/storage and service businesses, generally upgrading to bigger or higher quality buildings in better locations. Tenants making the jump to property ownership are also behind some of the deals.

Brown said a new younger generation of entrepreneurial business owners who are prepared to commit to a move to new premises are driving much of the activity.

“Anecdotally, our recent transactions show there are a lot of businesses across Christchurch founded and led by a younger demographic which are taking an optimistic view. They are willing to take action in the face of wider economic uncertainty and make that next step, upgrading their premises to kickstart the next stage of growth.”

Among the recent sales to owner occupiers which Brown has negotiated are two modern small warehouse & office units within complexes on William Lewis Drive in Sockburn; a warehouse and yard property on Raycroft Street, Waltham; and a warehouse & office unit on Stark Drive in Wigram. All four properties were sold between $515,000 and $2m in mid 2026.

Wigram, Sockburn and Hornby are the main focus areas for both tenants and purchasers, offering proximity to the CBD and good transport accessibility, he said.

“Owner occupiers continue to pay good rates for quality new premises and this sector of the market is active. This demonstrates a healthy level of confidence among local businesses, which is likely fueled by local factors including the opening of the stadium, along with South Island-wide economic drivers such as tourism growth and the strong-performing rural sector.”

Deals for industrial units above 1,000sqm are occurring less frequently by comparison, with larger businesses often more exposed to national economic conditions as well as global factors such as fuel prices.

CBRE Research's latest Christchurch Figures report shows overall industrial vacancy tightening to 2% in the first half of 2026, down slightly from 2.1%. 
The report also notes the increasing demand for buildings at the small end of the market, particularly in locations closer to central Christchurch. In contrast, consolidation measures by large tenants are still a feature of the market.

New industrial supply has been concentrated in Hornby and Rolleston and the pipeline of smaller stock remains restricted.

“There’s not much smaller-sized industrial product offered for sale on a vacant possession basis, which is resulting in competition among buyers for better-quality property across the more popular industrial suburbs,” Brown said.