Queenstown industrial property in recovery
Recent land sales indicate values generally ranging from $350-$550/m2.
Queenstown’s industrial market enjoyed increased in activity in recent months, with leasing of several long-vacant premises.
There have also been more buoyant land sales, according to Colliers in its annual review of the Queenstown market.
Vacant land sales predominantly in the Shotover Park industrial area have historically shown growth, with land values rising from $150-$250/m2 in 2002 and peaking in 2006-07 at $800-$1000/m2.
Recent land sales indicate values generally ranging from $350-$550/m2.
“We understand there have been some pre-sales within the next stage of Shotover Park for sites ranging in size from 700m2 to 1200m2 at sales levels from $400-$500/m2.
“However, the progress and timing of this extension to the industrial area is also uncertain due to consent and planning issues.”
Industrial rents are now typically in the range of $95/m2 to $140/m2 for good-quality warehouse space and $120/m2 to $150/m2 for offices, with some good profile locations achieving retail/ showroom rentals of up to $250/m2.
Industrial yields are stable and are now at circa 7% to 8.5%, depending on the tenant, lease terms, size, quality and location.
Chris Hutching for NBR NZ Property Investor
Wed, 22 May 2013
Wed, 22 May 2013
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Queenstown industrial property in recovery
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