Yearbook 2022 Reproduced by permission JLL New Zealand - www.jll.nz August 2021 Managing Director Todd Lauchlan Head of Research Gavin Read Auckland 09 366 1666 Wellington 04 499 1666
MANAGEMENT
Christchurch 03 375 6600
Industrial sector taking big strides but aiming to leave
small footprints
While COVID-accelerated behaviour changes may have forced the retail, hospitality, and office sectors to change tack to adapt, the industrial sector is riding a tailwind straight out of the pandemic, forging ahead on the same growth path� The minimum additional 1.1M sqm of space we believe will be needed by 2025 to keep pace with population growth – calculated at a rate of 4.5sqm per person - will require the full current pipeline of projects across Auckland, Wellington, and Christchurch to be completed� However, it’s worth noting that declining land availability and construction cost pressures are making development in these geographic markets increasingly challenging�
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In our wider look at New Zealand’s prospects at the start of this publication, we highlighted the rise of E and Q-commerce as a core driver of demand for industrial property� But as our population continues to grow, there will be other important factors at play that will shape future industrial development and redevelopment� New Zealand’s high level of urbanisation – almost 90% of our population is classified as urban, against a global average of 56% – is the perfect foil for our maturing E-commerce market, enabling retailers and logistics providers to service large consumer groups from a single location�
