Wellington industrial vacancy dropped to a record low of 2.1% in November 2017, down from 2.9% a year earlier.
New industrial supply has been constrained by a shortage of available land, although there have been several small new builds undertaken primarily by owner-occupiers.
Major infrastructure projects will benefit the region, in particular Kapiti and Upper Hutt.
Low vacancy and strong tenant demand will continue to put upward pressure on rents. Yields will continue to firm through 2018 due to the lack of available stock for sale.
Augusta purchased The Hub Industrial Park in Seaview for $44.9 million at a yield of 7.46% at the end of 2017.