Source: JLL Research
Auckland’s prime industrial sector continues to be one of the most sought-after asset classes. Driven by logistics, e-commerce, and a diverse mix of occupiers, well-located warehouses leased to strong tenants sit firmly in core plus territory, offering reliable returns with comparatively lower risk. Secondary industrial buildings can provide higher returns but carry more risk, placing them in the opportunistic quadrant.
The office market tells a story of two halves. Prime buildings attract quality tenants and offer stable, predictable income, sitting in the core quadrant. Secondary stock faces high vacancies and requires meaningful capital to meet modern sustainability and workplace expectations, placing it squarely in value-add territory. Retail is similarly divided, though perhaps not as you might expect. Large Format Retail (LFR) centres anchored by supermarkets or hardware stores are among Auckland’s lowest-risk assets. Strong tenant covenants and consistent demand place them firmly in the core quadrant. Traditional CBD street retail, meanwhile, continues to navigate headwinds from e-commerce and changing consumer behaviour, landing in value-add territory.