Industrial at peak as more land available
Prices may have peaked as more Christchurch land comes on stream.
Prices for industrial land in Christchurch may have peaked as more of it comes on stream, according to commercial real estate agent Greg Mann of NAI Harcourts.
Values of existing industrial properties and land for new development have climbed steadily since the earthquakes, as businesses shift away from damaged land and premises, and others expand or arrive in the city for the rebuild.
“Prices out west early last year increased a little but I don’t see them going any further and, in fact, they may well come back a little,” Mr Mann says in a market update to clients.
He pointed to “large tracts” of new development land coming on to the market in industrial parks at Waterloo Business Park (115ha), Calder Stewart’s newly announced Hornby Quadrant development (150ha), Dakota Park (80ha), Airspace (16ha), the Alliance Freezing works site on Waterloo Rd (13ha) and Izone Business Hub in Rolleston (50ha, with 40ha still to come).
Of several titles sold recently totalling 1.5ha, Mann says the price paid was $210/sq m. Prices in Wigram have been around $250/sq m.
Mr Mann says Ngai Tahu releasing its stage two at Wigram Skies – at total of 12ha – would “put a cap in pricing and I don’t see any price increases there unless they create smaller titles which may command higher prices”.
But, according to Colliers, interest in the industrial sector is expected to fuel strong demand for a property being marketed at 29 Nga Mahi Rd in Sockburn on the western outskirts.
The 1381sq m standalone warehouse and office has a longstanding national tenant that is part of a large Australian Group, Seal Imports, importers and manufacturers of hydraulic and pneumatic seals, o-rings and bushes. The lease has four years left to run with further rights of renewal.
Located on a freehold 3025sq m site, zoned Business 4, the complex comprises high-stud clear-span warehousing and a large yard with excellent trucking turning/container set down areas. It meets 65% of the New Building Standard rating.
Chris Hutching for NBR NZ Property Investor
Fri, 24 May 2013
Fri, 24 May 2013
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Industrial at peak as more land available
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