Canterbury’s reputation as one of the most affordable distribution points in New Zealand is putting pressure on the already scarce amount of industrial space available for lease.
“The soaring cost of living and associated economic pressures mean businesses are looking for greater efficiencies in the way they operate,” says Sam Staite, Director of Industrial at Colliers Christchurch.
“However, it’s not just their bottom line they’re trying to protect. With good staff hard to find, businesses are acutely aware of the need to help their people cope with escalating living expenses and are looking for ways to cater for their needs.
“We’re finding that a growing number of national firms are considering shifting their operations to Christchurch, where travel time for staff is shorter, houses are more affordable, and industrial rents are cheaper.”
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Staite says that businesses locating to new builds in the greater Christchurch area can expect rentals of approximately 40 per cent less than comparable industrial premises in Auckland, where new build warehouse rents are being reported at upwards of $230 per square metre.
“There are only a handful of spec industrial builds completed each year in the Christchurch area and developers are seeing a very good uptake in those that do come to the market.”
21-27 Pereita Drive in Rolleston is a prime example of the type of property attracting attention from national operators.
Ready for immediate occupation, the A-grade property is located in the sought-after Tawhiri development, adjoining the highly successful Izone Business Hub, and close to busy inland ports MidlandPort and MetroPort Christchurch. Countdown’s new $95 million Fresh Distribution Centre is nearing completion and is positioned just across the road.
The 7,616sq m high stud warehouse has been designed with flexibility and efficiency in mind and can be easily split to suit. The two single-level office blocks are well appointed and are separate to each other, enhancing the leasing flexibility of the asset.
Staite says the adjacent expansion land available makes this property ideal for the current and future needs of an incoming tenant. The conventional facility would suit logistics, manufacturing, and general warehousing.
“The private investor who owns this asset built the premises on construction rates that were locked in two to three years ago, so he can offer this property at rentals that are unable to be matched by new builds starting today,” Staite says.
“The approximate 10 to 20 per cent saving on rental and outgoings, compared to similar product in Hornby, makes this a smart new property option.”
- Article supplied by Colliers
