A $100-million-plus industrial complex under construction in a historical trading area of Auckland will create a new standard for the sustainable distribution of goods in New Zealand, according to an industry expert.
The latest Stats NZ data shows that the transport and warehousing sector makes up six per cent of the total emissions of New Zealand’s industries.Now, a new $100-million logistics development is targeting the 6 Green Star Design and As‑Built rating, a world-leading sustainability standard. The new investment comes at a time when parts of the Auckland region are facing the lowest levels of industrial building construction for over a decade.
The 3.5-hectare Onehunga development at 224 Neilson Street, with an expected value on completion of more than $100 million, will be the largest industrial build to date for NZX‑listed Argosy Property Limited when completed in late 2025. With approximately 1750 solar panels generating more than 1.2 gigawatt hours of energy annually, the facility will also be one of New Zealand’s largest rooftop photovoltaic installations.
Architects will incorporate low‑carbon concrete, rainwater harvesting, solar electricity generation, smart lighting and smart air conditioning, among other green initiatives to help achieve the rating.
The site’s infrastructure will provide the capacity to accommodate large electric vehicle truck charging, with solar panels supplying more than 1.2 gigawatt hours of energy annually for next-generation electrified 23-metre trucks and trailers, as well as for use in industrial processes or automated logistics.
Simon Brake, Argosy’s Development Manager, says the Onehunga development is attracting interest from large‑scale organisations focused on logistics and distribution, and is likely to employ more than 170 workers and a further 450 staff in its construction.
‘Onehunga’s strategic central position as a port and transport hub between Auckland and the Waikato was first recognised hundreds of years ago, and has seen it utilised as one of New Zealand’s earliest centres of trading and distribution,’ says Brake.
‘Today, these transit pathways are still in place, and the location provides access to State Highway 20, State Highway 1 and the wider transport network – facilitating the movement of thousands of tonnes of goods for the domestic and export markets.
‘With decarbonisation driving industry towards more sustainable business practices, a prime location must be paired with a demonstrably sustainable building to attract large-scale logistics operators.
‘To meet the needs of this sector, we are integrating a range of energy- and resource-efficient features into our building designs,’ says Brake. ‘These include the use of low-carbon additives in concrete and onsite electricity generation, supporting tenants in the move to electrified transport by providing carbon-zero energy.
‘In addition, rainwater tanks at the new development will store 980,000 litres of rain annually – enough to supply an average Aucklander’s daily needs for over 18 years. This supply provides an alternative to the utilisation of public water resources for non-potable use such as bathrooms and irrigation.’
Brake also says the project will also use low-carbon steel as an alternative construction material.
‘From an energy management perspective, and in contrast with commercial offices, lighting is expected to be the largest power consumer in an industrial building. We have consequently elected to install advanced LED systems that consume less than 2.5 watts per square metre, and will activate only with occupancy and insufficient natural light,’ he says.
Brake adds that the latest industry data shows industrial vacancy in central Auckland is low for A-grade warehouses, and the committed supply pipeline of new developments for 2025 is just 61,000 square metres – significantly lower than historical annual averages for the area.
He says that the Onehunga development has heavy industry zoning; dual road access; connections to local seaports, the CBD and Auckland airport; and will be made up of two high clear-span warehouses up to 13 metres in height – the first to be completed will be 5000square metres, and the second is 11,500 square metres, alongside 3400 square metres of breezeway.
‘We acquired the site four years ago and, even within that time, we have seen significant movement in demand. The pandemic has seen the return of manufacturing from offshore, and industrial businesses are increasingly looking for ways to green their operations. At the same time, construction costs have increased, as has the cost of capital, which has significantly reduced supply of new product in the sector,’ says Brake.
‘With market data showing there is less than one per cent prime industrial vacancy at the moment, and forecasts showing that next year could have the lowest new build volumes in over a decade, we have a high level of confidence in creating a pipeline of development that caters to sustainable industrial or logistics businesses.’
Brake says Argosy owns 51 commercial and industrial sites valued at over $2 billion, including one-third of all redeveloped 5 Green Star Built rated (or higher) office buildings in New Zealand.
He says the new development at 224 Neilson Street is part of the company’s plan to improve the sustainability of the commercial property sector.