New Zealand Industrial market update Q3 2026

See a below summary of the biggest trends within New Zealand’s industrial leasing and investment markets for Q3.

 

Leasing market

Occupiers looking ahead

Recent global uncertainty temporarily slowed leasing activity, however occupier confidence is improving as market conditions stabilise and businesses continue to plan ahead. Those remaining active in the market are well positioned to secure quality options while availability remains favourable.

Rental growth stable with incentives nudging higher

Market rents remain largely stable as rising availability and new supply create a more balanced leasing environment. In response, landlords are becoming increasingly competitive, with incentives continuing to emerge across the market.

Market rent reviews catching up

Occupiers with leases containing fixed or indexed rent increases may still face significant rental adjustments at their next market review, reflecting the strong growth seen across the market in recent years.

 

Investment market

Investment market absorbs global uncertainty

Investor sentiment remains cautious amid geopolitical uncertainty and lending cost pressures, contributing to slower sales activity. Despite this, yields have remained largely stable across the market.

Investors remain selective

Sales activity continues to build momentum, supported by sustained demand for quality assets. Investors remain selective, with a clear focus on strong locations, quality buildings and secure lease profiles.

Development feasibility stable

Development feasibility remains stable as rents, yields and construction costs continue to hold steady. Developers are increasingly targeting well-located sites that offer long-term growth potential.