Hamilton may feel squeeze on industrial buildings

Just 1.5 per cent of Hamilton's industrial buildings are vacant and that's an all-time low, city councillors heard

Hamilton's industrial areas are filling up.

Vacancy rates have dropped in two of the city's three industrial precincts, Hamilton City councillors were told at a Tuesday briefing.

Hamilton now has a similar vacancy rate to Auckland's, "which is described as extremely tight", councillors heard.

Hamilton's industrial vacancy rate is at 1.5 per cent, which senior policy analyst Keith Hornby described as an an all-time, historic low.

Auckland's rate is 1.3 per cent.

Hamilton has some space at Te Rapa North but no new industrial precinct ready and waiting, Hornby said.

"With continued strong growth in industrial, it can be expected that that [vacancy rate] would stay quite low if not fall further."

A lack of space in Hamilton could drive growth in nearby industrial areas such as the one beside Hamilton Airport and another in Horotiu, he said.

Councillor Paula Southgate asked why there was short supply, saying the regional Future Proof group had forecast commercial and industrial demand for land.

There may be available land, Hornby said, but the question is whether it is connected to council services and whether it has an industrial building for lease on it.
Industrial vacancy levels across Hamilton
Industrial vacancy levels across Hamilton
The councillors' briefing also covered other aspects of the property market, such as CBD office vacancy increasing to seven per cent.

On the residential front, Auckland investors now make up a lesser share of the market than in the recent 2015 peak.

"That decline does appear to come at the benefit of first home buyers," Hornby told councillors.

From Stuff.co.nz