March 2023 Market Update

Over the past three years, despite a pandemic, storms, floods and probably even pestilence, we have seen the Marlborough region continue to attract substantial growth in the commercial sector. Flat land that is zoned for any commercial or industrial use continues to be in short supply. The recent sale of 32 hectares of Industrial 2 land between Riverlands and Cloudy Bay Industrial Park to CentrePort for a proposed new land port has soaked up the available Greenfields Industrial 2 land that has been allocated in the district plan.

Land values have risen against tight supply and we are starting to see older commercial and industrial buildings being renovated and strengthened or alternatively demolished for new builds. Open hardstand yard space is also holding at good rates both in sales and leasing.

There has been strong interest in design, lease, and builds and we are proud to say we have now leased all available spaces out at the Riverlands Truck Stop. Flight Industrial Park off Waters Avenue, Burleigh, which was the old sawmill, is now being repurposed into a modern tech-friendly innovative industrial park. We have been appointed the exclusive marketing agents for some 15,000sqm of building on close to 60,000sqm of Industrial 2 zoned land. We have already leased or have offers on all but one of the existing buildings, and soon the remaining land will be offered up for purpose-built design, lease and build tenancies.

Leasing has remained strong in both retail and office space. Currently, there are very limited ‘move-in ready’ modern spec offices available in town, options are currently 7 Scott Street at 190sqm upstairs above Postie. We do have newly renovated and repurposed office space coming to the market within this year at 51-69 Queen Street above Westpac at 450sqm and 22A Scott Street at 1,200sqm, with a lease offer already on one-third of that space.

The sale of commercial buildings continues to be strong although few come to the market each year as they are still tightly held in Marlborough. Over the past two years, the best offers and the most interest has come from owner-occupiers. Over the past few months, the investor has come back into the market, but with interest rates rising, they are looking for a higher yield that may not be there just yet.

Since the launch of Marlborough Commercial, we have continued to gain real momentum, firstly from our many loyal customers that followed us across, and who continue to request our services or refer clients to us. And of course, our new clients that have recognised that we are the only full-time, dedicated commercial agents in the region. You will see a lot of new and exciting properties coming to the market for sale or lease over this next month, so keep a close eye out on our website and email updates.

Our approach to the commercial real estate market comes very much from a consultative approach. We are open with our time, to assist you, with strategies across your complete commercial portfolio.

If you are interested to know the sales value of your property or current market rental rates, feel free to give us a call.