A trend for Christchurch becoming South Island’s industrial hub had started emerging before its Canterbury earthquakes. These earthquakes have emerged to be the catalyst in the industrial development. As a result, they have accelerated the growth and the centralisation of the industrial operations of South Island in the Christchurch market. This growth is what has sparked a significant change that had not been observed before in the greater Australia and the South Island areas. Were it not for these earthquakes, it is believed that this significant change would have taken a longer period of time.
This significant change has made Christchurch respond quickly and as a result, it has emerged to be South Island’s industrial Mecca that is now attracting investors and tenants as a result of a number of factors discussed below:
- Christchurch is New Zealand’s city that is ranked in the second position with a population that is exceeding 550,000. The city’s population provides a number of business and labour pool opportunities which is the main thing attracting investors and tenants.
- The second largest sector for manufacturing in the country is located in Christchurch whereby manufacturing is considered to be occupying the largest part of the regional GDP.
- Canterbury is ranked as the regional economy that is growing the fastest in New Zealand as a result of earthquake rebuilding and the expansion of agricultural production.
- A budget of around 100 million US dollars is spent on a weekly basis on earthquake rebuilding and another rebuilding project worth 50 million US dollars is underway whereby approximately 15 million US dollars is allocated to the commercial side and around 5 million US dollars attributed to infrastructure.
- A program pertaining to the construction of new industrial premises is underway whereby they provide certainty to the owner and the occupier. These premises are constructed at 100% of the code.
- A number of locations that are yet to receive development have been experiencing ample supply of the industrial land that is serviced.
- The profiles and the associated leases of the new tenants are prolific. There is a wide variety of new businesses and new premises whereby an expansion of the existing businesses is being observed. These existing businesses require premises and lease items that are new.
- Christchurch is situated in a place that is easily accessed from the international airport and Lyttleton which is the largest seaport in South Islands. Also, the place is situated across from a rail network that leads to other locations of South Island. It is recorded that approximately 99.5% of the trade weight for New Zealand is shipped via the seaports which makes Christchurch the box seat for the delivery of container freight.