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Nick O'Styke February Newsletter
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Hi <<First Name>>,

Welcome to our first edition of Market Update for 2016. In this newsletter, we cover the latest market intelligence for the local industrial market, including local valuers and property expert’s opinions on the current vacancy rates, rental rates and length of tenure. The thoughts below are a collaboration of my own experience in the industrial market and material which has been received from the generous valuers and property professionals we regularly meet and talk with. 

The industrial sector throughout New Zealand is very healthy, it accounts for over 33% of the nation’s GDP and Christchurch is well placed to take advantage of this, being the second largest manufacturing centre in the country. Exciting and unprecedented times are afoot with a huge number of both large industrial and smaller service businesses relocating to purpose built premises within Industrial Parks to efficiently allow the business room for future growth, however as the migration continues we are seeing more ‘For Lease’ signs on existing industrial properties for longer periods than we have experienced in recent years. The industrial vacancy rate has definitely increased and they are not in any one particular location, we are seeing more and empty space come available within almost every industrial hub across the city. Prime grade vacancy is reported at 1.5% which we anticipate will remain steady and possibly decrease, although secondary stock is now over 3% and we expect this to grow further. 
 
As a result of the increased supply of properties available for tenants,  rental rates are not rising and remain steady. We are beginning to see incentive based deals available for the right tenant and long-term lease arrangements. Confidence in the medium to large speculative building has slowed however, smaller unit titles developments are selling successfully both from the plan and nearer completion time. The units with surplus office space/showroom areas are taking longer to lease than units with modest office/showroom areas and we put this down to simply affordability for the smaller service based businesses.

A valuer asked if we are seeing tenants lease terms shortened as a result of increased vacancy rates. It is hard to answer this question as it is correct for some properties, particularly within in the secondary grade, however, it’s not a blanket rule and we are seeing well-located prime grade industrial buildings lease for long tenure. The same valuer mentioned that unlike commercial space, industrial property has never really had a “fad” or change in identity for so long that generally speaking there will be someone for an empty property with little or no modifications, and we agree with this sentiment and believe that industrial property is an excellent investment.

I am interested to hear your opinions as vendors and property professionals on the above trends and would be most interested to hear from you if you are looking for a tenant or an investment property we can assist with.
Nick O'Styke
M 027 696 9801
B  03 375 4700

nick.ostyke@bayleys.co.nz

Nick O'Styke

Sales and Leasing Agent
Nick O’Styke’s huge work ethic, infectious energy and ability to get alongside people and build strong relationships has provided him with a stable platform to become a driving force in the Bayleys Canterbury commercial and industrial area for the past five years. Over this time, Nick has transacted significant commercial and industrial property holdings in excess of $100 million dollars throughout Canterbury. Nick’s passion for property backed up with his valuation background has given him a sound understanding of property and allowed him to establish extensive relationships within the Canterbury property services sector and repeat clients.

If you would like someone to work hard for you on specific requirements, or if you are interested in current market information or trends, please feel free to contact Nick as he can offer both sound advice and real market opportunities tailored to your personal property strategy.

Bayleys Commercial Canterbury

Riccarton, Christchurch
Headed by Pete Whalan, Bayleys Commercial Canterbury team is made up of 12 individuals widely regarded as some of the best practitioners in the business. With extensive experience and in-depth local market knowledge across all aspects of commercial, industrial, business, retail, hospitality the team covers both sales and leasing. The team are exceptionally well placed to assist Nick and yourselves in creating opportunities and deliver results.
Awesome Add Value Industrial Investment
Deadline Sale - Kaiapoi


Located in a modern industrial hub in Kaiapoi this property is home to Scrapman Christchurch Limited. This property gives any astute purchaser the option to hold and redevelop or the opportunity to add value and take advantage of a prime North Facing site in Courtenay Drive.  

ID#551499


 
 
Prime Hornby Position
For Sale/Lease - Hornby


250sqm of high stud modern warehouse with wide container height door plus well appointed individual offices and meeting rooms.

ID#551056


 
 
Office/Showroom Opportunity
For Lease - Wigram


Located close to the Christchurch Southern Motorway in Wigram, this 306sqm (more or less) office/showroom space is now available for immediate lease.

ID#551483


 
 
Tell Us What You Need
For Lease - Hornby


A great opportunity for your business to lease a brand new premises within the sought after Central Business Park. The vendor is an architect by trade and will work alongside you to tailor the office and warehouse package to best suit your business. 

ID#551483


 
 
12 Marylands Place, Middleton
You Beauty

This spotless industrial premises, located in popular Middleton has now been leased.

ID#551508
12 Centrum Lane, Rolleston
Lets Talk Yard

This secure, near new premises in the thriving Izone Business Park (New Zealand's largest industrial business park) has now been leased. 

ID#551381
41 and 43 Buchanans Road, Hornby
Industrial Investment Property - with Upside

This unique opportunity to purchase a dual tenanted industrial property in the hear of Hornby has now sold.

ID#550608
17 Islilngton Ave, Islington
Waterloo Business Park - Lot One, Stage One

Christchurch's premier place of industry and business, comprising 8,200sqm (more or less) has now been sold.

ID#519095
519 Moorhouse Avenue, Phillipstown
Investment 

Nigel Thompson Motor company is right in the heart of a very popular car sales area and has now been sold with a long lease back. 

ID#550911
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