Demand for industrial space in Auckland was positive in the second half of 2013, but CBRE research director Zoltan Moricz said supply was greater.
The result was a 0.4% increase in vacancy to 3.8%, evenly spread across all grades.
Total vacancy for the stock CBRE monitors rose by 54,833m² to 446,064m². Mr Moricz said A grade vacancy was 2.9% (120,157m²), the secondary grades 4.3% (B grade 156.962m², C & D grades 168,946m²).
26,619m² of existing A grade stock was taken up, but that was more than offset by an additional 41,715m² becoming available. In addition, 15 new buildings boosted supply by 76,327m², but only one building of that new stock remained vacant at the end of the year.
Net absorption shrank by 14,908m² in Penrose, the heart of Auckland’s industry, and in Mt Wellington absorption was negative by 9187m². However, takeup was stronger at Wiri, where there was a 25,743m² occupancy gain.
Mr Moricz said a number of Mt Wellington industrial buildings were removed from stock to make way for the Ameti (Auckland-Manukau eastern transport initiative) route, and a number of buildings changed from industrial to commercial use.
Attribution: CBRE release & interview.