Auckland industrial outgoings report 2026

Outgoings rising

Total outgoings continue to trend upward. While there is no single lever to materially reduce operating costs, proactive management and regular review of all components remain critical to controlling costs.

 

Rates have the largest share

Rates account for the largest share of outgoings and have been the key driver for total outgoings rises over the past year. Rates remain a difficult cost for landlords to manage given they have little direct control over the expense outside of challenging their property's assessed capital value at the three yearly rating revaluation.

 

Insurance costs stable

Insurance costs have moved into a steady state after several years of significant increases. This reflects the insurance market operating in a cyclical softer period, giving some landlords the opportunity to secure savings. While market conditions have improved, outcomes remain highly dependent on individual asset characteristics and risk profile. While the average has been stable, cost movements have varied between properties.

 

Scale delivers a cost advantage

Building size is one of the drivers of operating efficiency. All else being equal, larger industrial properties generally achieve lower outgoings per square metre as fixed costs are spread across a wider rentable area.

 

The green premium trade-off

A green building does not automatically mean lower outgoings. Green buildings typically benefit from lower utilities and lower maintenance due to being newer, but these savings are often offset by higher rates associated with the properties being more valuable. The case for green buildings continues to extend beyond operating costs into other aspects like lower emissions, access to sustainable funding, and improved occupier outcomes.

 

Volatility impacts the trend

Outgoings for industrial properties showed significantly higher volatility than outgoings for office properties. This is primarily due to lumpy repairs and maintenance costs, but various examples were also noted of accounting practices introducing volatility by shifting normally steady costs into adjoining years, causing peaks and troughs.