Unlocking the industrial cube

A focus on efficiency, height, and operational performance is driving the industrial leasing market, with the latest Bayleys Industrial Workplace portfolio highlighting the shift toward buildings that work harder for their tenants.

The publication notes that early, independent expertise is becoming central to securing facilities that support business growth, control cost, and future-proof operations.

Efficiency has become the dominant theme in occupier discussions, with Scott Campbell, Bayleys national director industrial and logistics, saying occupiers are scrutinising every square metre for performance.

“All discussions come back to less footprint, more capacity. Occupiers want industrial buildings that work harder for them with higher studs, smarter layouts, and infrastructure that supports automation.”

Campbell says that while some market fundamentals remain challenging, development costs have eased and speculative development has re-emerged.

“There is still a decisive flight to quality, and even with higher headline rents, the total cost of occupation is often lower because these new generation buildings deliver far stronger performance. That’s where demand is consolidating, and where the market is heading.”

Independent project and cost management consultancy RDT Pacific is seeing the same trend. Quoted in Industrial Workplace, director Michael Hutchings says occupiers are increasingly seeking clarity and discipline at the front end of projects.

“Our job is to take the risk and the guesswork out of building, so an occupier ends up with the right asset, at the right cost, delivered with certainty.”

He says cost predictability, timeline certainty, and operational fit are now the core requirements for industrial clients, and the occupiers who win will be the ones building cubic capacity, power and automation-readiness into their facilities today, rather than retrofitting later.

“That means making sure the building supports the operation inside it by addressing clear height, floor loading, power, yard and truck movements, and automation, rather than being a box that simply looks good on a plan.”

Hutchings notes that construction cost growth has stabilised, tendering is competitive, and pricing can be locked in with far more confidence. He also points to regulatory change opening new pathways for quality international materials.

“Over time, that should mean more competition, more choice, and less exposure to single supplier pricing and lead time risk on key materials.”

With prime Auckland industrial land now at around $950 to $1,200 per square metre, occupiers are maximising cubic capacity.

“Modern fire engineering has unlocked the cube and, in a market, where land is the expensive part, height is the cheapest space you can buy,” says Hutchings.

Auckland Racking & Shelving Solutions national sales manager Jack Boxall says operational due diligence must start well before a lease is signed.

“Due diligence goes well beyond the lease contract as the real risks sit in the fire systems, slab capacity, and seismic performance that determine what a warehouse can actually support.”

He says engineered, compliant racking systems are now essential to maximising cubic capacity and maintaining safe, efficient operations.

“Partnering with market leading fire, seismic, structural, and slab engineering specialists, we can deliver layouts that maximise cubic capacity, improve warehouse flow, and maintain a strong safety culture.”