Why Wiri is one of New Zealand’s most important logistics hubs - and why ESR is investing here
WIRI LOGISTICS ESTATE
From supply‑chain resilience to distribution efficiency, choosing the right location for a business’s industrial and logistics operations can be the essential ingredient to improved growth and efficiency, transforming how businesses operate. Global property group ESR explains why it’s investing long-term in New Zealand, and the role of Auckland’s Wiri precinct in that growth strategy.
Industrial and logistics real estate is a critical but often overlooked asset, underpinning economic and job growth. From food and pharmaceuticals to retail and e commerce, businesses rely on warehouses to move goods efficiently and at scale – making strong infrastructure a key driver of growth rather than a constraint.
This is driving long-term investment by APAC real asset manager ESR, which is expanding its presence in New Zealand.
According to Tony Catton, General Manager for Development – New Zealand at ESR, Kiwi businesses are seeking more than just space; they want certainty through locations and facilities that support daily operations.
“Our approach in New Zealand is deliberately long-term,” said Catton. “We’re investing in locations and assets that we know will deliver for business needs over the next decade, not just reacting to short term market conditions.”
Why New Zealand stacks up
New Zealand’s industrial market is shaped by a small number of structural factors impacting the industrial property market and warehousing selection: population growth, constrained industrial land supply in major cities, and national supply chains that depend on efficient distribution.
According to the Reserve Bank of New Zealand[1], demand for industrial property nationally is robust, especially in Auckland where the most pronounced shift is being seen in the demand for prime vs secondary commercial properties, with businesses shifting their focus to this important industrial hub.
Auckland sits at the centre of that activity, particularly within the Auckland–Hamilton–Tauranga ‘Golden Triangle’, where a significant share of the country’s economic output flows via the area’s transport and logistics networks.
For ESR, this points to long-term opportunity rather than short‑term cycles.
“Even when market sentiment is cautious, the underlying demand for well‑located, high‑quality industrial space remains,” said Tony Catton. “Goods still need to move, and businesses are prioritising efficiency in business and operations strategy”.
ESR entered the New Zealand market through its acquisition of the LOGOS business and has been building its footprint progressively since that time.
The business’s focus since entering the market has been on growing and scaling: acquiring strategic sites, delivering modern facilities, and working closely with occupiers whose operations depend on logistics performance.
“We’re still building awareness in New Zealand,” said Catton. “But our priority has always been capability and delivery where we do what we say we’ll do and build trust through action.”
This approach is most visible in South Auckland, where ESR has continued to invest in industrial locations of strategic importance and significance.
Why Wiri matters
Within South Auckland, Wiri has emerged as one of the country’s most important industrial and logistics precincts.
Wiri’s close proximity to Auckland Airport and connections to the key State Highways 1 and 20 transport arteries, provides strong access to labour and population centres. For businesses that rely on fast distribution and predictable transport routes, these are the fundamentals that are shaping property decisions.
“Location still does most of the work in logistics,” said Tony Catton. “Wiri gives businesses access to key freight corridors and the broader national economy.”
ESR currently holds around 25 hectares in the Wiri Logistics Estate, which is now fully leased, and is continuing to invest in the area through a staged development pipeline which includes the nearby Dalgety Drive Logistics Estate and Druces Road Industry Park.
Combined, ESR will deliver close to 105,000 sqm of new logistics space in Wiri over the coming years, demonstrating ESR’s investment and focus in growing its New Zealand market footprint; reflecting the company’s view that demand for efficient logistics facilities remains strong with two developments in progress.
Render of 25 Druces Road
Render of 38 DALGETY DRIVE
Who the space is built for
Across its New Zealand portfolio, ESR focuses on occupiers where logistics performance is business critical.
That includes companies in logistics, fast-moving consumer goods and temperature‑controlled warehousing – sectors where space, layout and efficiency directly affect operating costs and service levels.
“Our customers are critical service businesses that can’t afford friction in their supply chains,” said Tony Catton. “The right facility ensures that they can move faster, reduce inefficiencies and operate with confidence for their business needs today and tomorrow”.
Where sustainability fits in
According to ESR, sustainability is playing a growing rather than critical role in how larger businesses think about property
“Performance still comes first but the role of sustainability is growing,” said Catton, “That said, location and functionality remain the top considerations for businesses.”
ESR is committed to delivering environmentally responsible assets, targeting five-star Green Star ratings as part of its broader sustainability ambition.
What businesses are looking for now
Catton outlines that feedback from customers across New Zealand points to the following priorities:
- Adaptable, high-quality space that can evolve as operations change
- Efficiency, including height, layout and vehicle access
- Certainty, particularly when entering longer lease commitments
- A long-term, trusted partner rather than a purely transactional relationship
“For many occupiers, warehouse decisions are ten or fifteen-year calls, where today’s decision requires confidence that the asset will still work for them in the future,” said Catton. “Practical functionality is our warehousing and property design rather than trends or headline features”.
If you want to know more about ESR projects, visit https://au.esr.com/
[1] Reserve Bank of New Zealand, Commercial Property in New Zealand – Financial Stability Report (Aug 2024)
INSIDE OF WIRI LOGISTICS ESTATE BUILDING
Let’s Grow Wiri Together
Whether you're a local business, manufacturer, or community partner, the Wiri Business Association is here to support your growth. Stay connected, collaborate, and make your voice heard.
Contact Us