Confidence in commercial property is at an all-time high in Rolleston near Christchurch, which is the largest town in the booming Selwyn District, the fastest-growing territory in the country.
Colliers Christchurch Broker Harry Peeters, who specialises in industrial land and buildings in Rolleston, says new buildings in the town are rarely vacant for long before being leased by a tenant or purchased by an owner-occupier. Construction companies and private developers are continuing to buy land and building on speculation.
“Rolleston is set to capitalise on the ongoing demand for new homes and business growth with the Christchurch city residential and commercial land supply increasingly constrained,” Peeters says.
“We’re also seeing good signs of organic growth in the area. Companies that have called Rolleston home for years are expanding and driving the need for larger premises. That trend is coupled with an increase in Christchurch-based businesses looking to Rolleston for new premises because of the low vacancy rates in town.
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“The keen demand for premises has seen some tenants miss out on buildings for lease through multi offers, prompting them to look further afield to Rolleston, where there are modern buildings and a bigger supply.”
Carter Group has released the new stage of its Iport Business Park consisting of greenfield industrial sections ranging in size from 1,250sq m to 4.9ha. This variation in size caters for small businesses that are locally owned through to multinationals.
Peeters says in the past 12 months there have been several large land acquisitions in Rolleston which will contribute towards approximately $400 million in industrial development over the next two years.
Coolpak Coolstores and cold storage and logistics company Lineage recently acquired 4ha and 7ha respectively to house new state-of-the-art complexes.
Calder Stewart is developing a new site for Transpower on 3ha in Izone Business Park and Bidfood is ready to start site works on its new facility on 1.7ha of land on Hoskyns Road.
Owner-occupier purchases and investment sales during 2024 continue to illustrate the market is prepared to jump at the opportunity to buy modern assets that are offered to the market, according to Peeters.
He has negotiated investment sales at 7 Hynds Drive, 41 Stoneleigh Drive, and 11 Container Drive this year, while an owner-occupier bought 34 Factory Drive.
Peeters has also transacted a steady flow of leasing over the year, including 41 Stoneleigh Drive, 61 Hynds Drive,114 Iport Drive, and 10 Freight Drive.
Meanwhile, he says the design build lease market continues to bubble with transactions being worked on currently ranging from $90,000 to $400,000 in annual rental.
“This is a great indication of confidence in the market with businesses across the size gamut willing to enter into long-term leases for buildings that meet their requirements over the next five to 10 years.”
- Supplied by Colliers
