by The Landlord
It commissioned research that showed that the Auckland Council estimate of 1875ha of vacant business land and vacant potential land is likely overstated.
“There is less than 800ha of land currently available for industrial development. The inclusion of vacant land zoned for office or retail development, of which very little exists, would make only a small difference.”
Industrial land made up 70% of business land, the Property Council said - and this could be exacerbated by residential building activity being encouraged on land where business activities should have been allowed to grow to support the demand generated by residential growth.
“There will probably be a shortage of sufficiently available business land in the medium to long-term across Auckland.”
The Property Council said that if commercial land absorption rates settled at 50ha per year, Auckland would need 950ha of land between 2012 and 2031. “With the market heating, absorption rates could be significantly higher.”
Between 1996 and 2006, commercial land absorption rates reached 113ha per year.
The Property Council said the Auckland Council must prioritise making land available for commercial development and there needed to be clear signalling to provide certainty.
There was limited supply of vacant commercial land over one hectare. Sixty per cent of vacant commercial parcels were less than a hectare, it said.
“Most land available for industrial development is in the south. This could lead to a shift in employment clusters, and absorption rates are likely to be therefore higher in this area.”
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