Industrial sector picks up pace
Christchurch agencies are forecasting a good year for warehouses and factories, barring big international shocks.
Christchurch real estate agencies Colliers International and NAI Harcourts are predicting that strong momentum for industrial property will continue throughout 2018.
Colliers’ director of industrial sales and leasing in Christchurch, Sam Staite, along with managing director Hamish Doig, are marketing properties at Hornby and described the interest in industrial property investment as ‘‘incredible’’ so early in the year.
Doig said 2017 finished strongly, with a high number of large-scale transactions completed in the fourth quarter.
NAI Harcourts’ agency head in the city, Howard Buchanan, expressed some caution because of international events that may lead to tighter credit conditions and higher interest rates.
But the new Government’s tougher stance on overseas buyers of residential property might benefit the commercial sector if investors switched focus, he said.
Industrial vacancy was low. New influences on bricks and mortar included the entry into New Zealand of online trader Amazon, he said.
Meanwhile, Staite said location remained one of the most important attributes for investors and developers.
He and Doig are marketing a large modern industrial warehouse and showroom in Hornby. The 9662-square-metre premises, at 704 Halswell Junction Rd, was a design build in 2005 as a flagship facility for glass manufacturer and installer Metropolitan Glass & Glazing, a subsidiary of listed company Metro Performance Glass.
Performance of the listed company has been patchy over recent months, as reflected in a falling share price.
The property is for sale by deadline private treaty, closing March 15.
Situated on 2.2-hectare freehold section, the two-level building features a showroom, offices and medium-stud warehousing.
Staite said Metro Glass had a further eight years to run on its lease, which expires in 2026.
Metro makes and installs double-glazed windows for residential and commercial building. It has four processing and 16 retail sites in New Zealand and two in Australia.
The showroom was designed by Sumich Chaplin, and the property has space for expansion.
The Calder Stewart development at Hornby Quadrant, just off Shands Rd, has also experienced a big increase in development in the past three years, with some of the largest industrial builds completed recently.