New building code requirements come into effect

Industrial

Stable demand for prime space is driving low vacancy rates even further. What factors will impact performance as we continue to operate in a high interest rate environment?

Stable occupancy rates and continued low vacancy are key factors driving rental growth in the logistics and industrial property market. For the second quarter in a row, prime industrial net rents have increased in Christchurch (by 3.8%), with a similar trend seen in Auckland. The most notable change was in south Auckland, where prime industrial rent increased by 5.6% ($10 per sqm), and secondary space increased by 3.5% ($5 per sqm). Natural competitiveness in the sector due to occupier demand, limited new stock in the pipeline, and increasing yields will continue to drive the performance of industrial assets into 2023. Vacancy rates for industrial assets on Auckland’s North Shore lowered to 0.7% in the first half of the year, highlighting the demand in this precinct.

A similar story is seen in the Wellington market where vacancy is below 2% (1.8%) largely due to local demand and a lack of available greenfield land for new developments. Christchurch’s industrial pipeline is experiencing opposite conditions, with

approximately 60,000sqm of industrial development due to be completed by the end of 2022, and a further 25,000sqm in the pipeline. These additions to the market drive the message that Christchurch is seen as an important investment market,

performing consistently despite the rising interest rate environment.

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The significant uptick in attention to Environmental, Social, and Governance considerations across all markets remains front of mind for owners and occupiers alike. While there are no regulatory requirements for Green Star and NABERS ratings for commercial real estate currently, observing offshore trends in Australia, the UK, and Europe points to New Zealand adopting its own regulatory framework. We have unintentionally entered into a ‘price discovery’ phase as buyers and sellers work through the higher interest rates environment and its impact for yields. Occupiers are actively encouraging employees to return to their workplaces, using strategies such as social events and better collaborative environments and tools to reduce desk vacancies. Attracting and retaining tenants will continue to be driven by quality offerings across asset classes, underpinning the ‘flight to quality’ and resulting in the evolving rising rental narrative and widening divergence between prime and secondary assets. This is forecast to carry over into 2023.

Looking Ahead

JLL real estate market research is based on data from several reputable sources including on-theground insights from its own departments. First published November 2022. Gavin Read is the Head of Research at Jones Lang LaSalle (JLL) New Zealand.

JLL is a leading professional services firm that specialises in real estate and investment management.

SLABX200 is specifically designed to deliver high compressive strength and improve insulation under concrete slabs.

Developed by trusted Kiwi insulation experts EXPOL, this exciting new innovation has quickly become the product of choice for specifiers and others in the construction industry.

Why do I need to insulate the concrete slab?

Slab insulation is important not only to save on energy bills for future owners and tenants, but also to improve comfort.

Insulation will reduce heat loss and make the slab easier to heat. It offers a layer of projection against moisture and will provide a thermal mass to regulate temperatures.

If embedded floor heating is incorporated in a concrete slab-on-ground, the slab must be insulated so that heat from the slab is delivered up into the space above and not lost to the exterior and ground below.

Its high performance specs are designed to give Engineer’s peace of mind so that they can recommend this product with 100 percent confidence”.

The team at EXPOL recognised that there was nothing on the market that offered a cost-effective yet high performance solution to concrete insulation.

So they set about to develop a product with New Zealand residential and commercial projects in mind.

The durable nature of SLABX200 means that it won’t degrade over time, keeping its integrity for the life of the structure.

Due to the lightweight nature of Expanded Polystyrene the product is also easy to handle and install making quick work of slab insulation on site.

Kiwi innovation leading the way in concrete slab insulation

Wayne Watson Technical Manager EXPOL doing a visual check of SLABX200 to ensure it meets EXPOL’s high technical specifications.

A new generation of Expanded Polystyrene Board insulation has arrived

What makes SLABX200 different?

We chatted to Wayne Watson a Structural EPS and GeoFoam Consultant at EXPOL to see what makes SLABX200 different.

Wayne told us that due to its compressive strength rating of 200Kpa there is no comparable product on the market. He states “SLABX200 is specifically designed for insulating concrete slabs. It has a rating of 200kpa at 10 percent compression or 20 ton per square meter.

How does this product compare to Healthy Homes standards?

The Healthy Homes insulation standards across New Zealand states than underfloor insulation should have an R-Value of 1.3 or greater.

With several thicknesses available SLABX200 ranges from an R-Value of R 1.5 at 50mm thickness through to an impressive R6.0 at 200mm thickness.

Therefore, all thicknesses offer R-Values over and above the standards to ensure healthy and efficient homes.

How does this product work in my sustainable building project?

The team at EXPOL are committed to the environment. In a true closed loop process 100 percent of manufacturing waste is recycled in their seven recycling plants nationwide.

Expanded Polystyrene offers great eco credentials and at the end of a products life it can be turned into other EXPOL products.

The high performance of the SLABX product also ensures that your building project is sustainable to heat and cool and therefore leading to less energy consumption over the life of the building.

If you’d like to learn more about the SLABX200 product, the team at EXPOL are happy to have a chat. Visit their website on www.expol.co.nz or give the Technical Manager at call on 0800 86 33 73.