JLL's Auckland industrial market dynamics provide property insights into warehouse vacancy rates, rental trends, and transaction activity across precincts.
25 May 2026
Insight
25 May 2026
Auckland Industrial Market Dynamics Q1 2026
Categories:
Authors
Chris Dibble
Hina Uqaili
Monish Khan
The industrial vacancy rate across the Auckland region rose to 3.7% in 2H25, up from 2.8% in 1H25, marking an 80bps increase over six months. Vacancy by precinct is now at 4.0% for Auckland City (up 180bps since 1H25), 3.6% for Manukau (up 10bps since 1H25), 2.3% for North Shore (up 70bps since 1H25), 6.5% for North-West (up 180bps since 1H25), and 2.5% for Drury (down 30bps since 1H25).
During the second half of 2025, 56,230sqm of new warehouse space was completed in Auckland, bringing the total inventory to over 13.6 million sqm.
James Kirkpatrick Group reached practical completion for L'Oreal Groupe's new 12,000sqm warehouse at 9 Manu Street, Otahuhu. The project represents a significant milestone, achieving a 6 Green Star Design certification.
Prime average net warehouse rents increased from NZD 198 per sqm p.a. to NZD 200 per sqm p.a. over the previous quarter, a rise of 1.0%, while prime average net combined rents edged up from NZD 221 to NZD 222 per sqm p.a., representing a 0.4% increase.
Average net prime yields remain steady at 5.25%, while secondary yields hold at 6.00%. Both are expected to remain unchanged through to the end of the year. Recent notable transactions include the sale of 4 Henderson Place, Onehunga, a 10,600sqm property, for NZD 39.75 million, and 6 Aintree Avenue, Mangere for NZD 8.25 million.
Outlook
The industrial sector remains a strong and attractive asset class within Auckland’s commercial real estate market, despite the backdrop of economic and financial challenges. While demand from logistics and e-commerce continues to grow, the industrial market’s resilience is further supported by its broad mix of uses, including manufacturing, construction services, data centres, and storage facilities.
The current investment environment is characterised by selective purchasing activity from a diverse range of buyers including local private investors, syndicators, listed firms, and offshore groups seeking to expand their presence in New Zealand by targeting high quality property with strong covenants.