A shortage of commercial real estate is looming as New Zealand businesses bounce back from the recession, real estate agency Knight Frank says.
Director of industrial sales and leasing Josh Franklin said the commercial property market would face increasing pressure as demand increased for bigger or multiple premises.
“The industrial property sector in Auckland has been extremely busy over the past 12 months as companies begin to recover from the global financial crisis. However, as the demand for premises increases, the supply of new properties for lease remains worryingly static, outside the design and build sector,” he said.
He said there was a lack of central isthmus land suitable for industrial development.
Higher land values might potentially be problematic for industrial tenants and could lead to an increase in occupation costs.