12 December 2024, 11:16 PM
Locals may soon see significant changes in Auckland’s industrial landscape, as experts warn of a growing shortage of industrial-zoned land that could impact the future growth of big-box retail in the region.Drury South Crossing, a large-scale mixed-use property development in South Auckland, is at the forefront of this change. The site is set to receive hundreds of millions of dollars in investment for some of New Zealand’s most substantial retail infrastructure projects over the next two years.Among the developments is a $100 million distribution centre for Briscoes, which is scheduled to open in 2026. Briscoes planned new North Island distribution centre.The facility will dramatically increase Briscoes' storage capacity, accommodating over 17,000 pallets of goods compared to its current 4,500-pallet capacity. Wesfarmers-owned Bunnings and NZ Safety Blackwoods are also planning large-scale facilities at the site.Stephen Hughes, CEO of Drury South Crossing, explained that over half of the second phase of the industrial project has already been sold to businesses seeking large-scale retail, manufacturing, and industrial infrastructure. Hughes highlighted the challenges posed by limited land availability in the Auckland region.“There are very few sites remaining in the wider Auckland region zoned to accommodate the 20-30 metre height required for automated warehousing,” Hughes said. “This shortage could constrain the scale of future retail distribution operations, potentially impacting the variety of options available to consumers as the population grows.”The rise of e-commerce and consumer demand for faster delivery times are key drivers for the implementation of automated storage and retrieval systems (ASRS). These systems require purpose-built facilities, making land availability a critical factor for future developments.Ben Stewart, associate director of Property at Calder Stewart, noted a growing trend among big-box retailers to consolidate multiple warehouses into single, large automated facilities to improve efficiency. Calder Stewart has secured 14 hectares at Drury South Crossing, including sites for Briscoes and NZ Safety Blackwoods.“Auckland's geography and internal waterways, combined with reluctance from planners to rezone arable land, mean there are limited options for businesses needing contiguous, large-scale land close to major transport routes,” Stewart said.The development also includes plans for a new 60MW substation, a $30 million investment that will power industrial users and potentially support tech companies building data centres. Hughes emphasised the importance of future-proofing infrastructure, noting that the substation will be among Auckland’s largest, with the capacity to power 45,000 homes and double the transmission capabilities of other city areas.As Drury South Crossing continues to attract interest from large-scale industrial and retail operators, the region's remaining land parcels are becoming increasingly valuable.Have a story to share?Contact [email protected]