Auckland Industrial Market Dynamics Q2 2026

• Despite a slight softening in occupier demand that saw Auckland's vacancy rate rise to 4.0% in the first half of 2026, the market added over 42,000 sqm of net industrial space, including a high-quality, 6 Star Green Star targeted facility for tenant Viatris in Mt Richmond.
• Modest rental growth continued, with prime warehouse rents increasing by 1.5% in Q2 2026 as yields remained stable.
• The industrial sector's outlook remains resilient and highly sought-after by investors, supported by a diverse occupier base spanning manufacturing, construction, and data centres, in addition to traditional logistics.

Occupier demand in Auckland’s industrial market in 1H26 softened slightly, with the regional vacancy rate increasing by 30bps from 3.7% to 4.0%. During the first half of 2026, approximately 42,415sqm of net industrial space was completed across Auckland, taking the region’s total industrial inventory to nearly 13.7 million sqm. Key completions included 8–14 Mt Richmond Drive and 2 Doraval Place within Argosy’s Mt Richmond Industrial Park, where Viatris has already been confirmed as a tenant for the 5,882sqm facility, which is targeting a 6 Star Green Star rating.

Prime average net warehouse rents rose from NZD 200 to NZD 203 per sqm p.a. in 2Q26, a 1.5% increase. Secondary average net warehouse rents increased by 1.2%, moving from NZD 165 to NZD 167 per sqm p.a. Meanwhile, prime average net combined rents climbed from NZD 222 to NZD 225 per sqm p.a., up 1.4%. Average net prime yields are stable at 5.25%, and secondary yields continue at 6.00%, with both expected to persist at these levels until year-end. Recent notable industrial transactions include the sale of 37 Felix Street in Onehunga for NZD 53.5 million and 10 Te Ahurea Street in Hobsonville for NZD 51.2 million.

Auckland’s industrial sector continues to demonstrate resilience and remains one of the more sought-after asset classes within the commercial property market, despite ongoing economic and financial pressures. Although logistics and e-commerce demand remain a key driver, the sector’s strength is also underpinned by a diverse occupier base spanning manufacturing, construction-related businesses, data centres, and storage operators.