Hundreds of millions of dollars of investment is set to be injected into large-scale industrial property developments as sustained growth in the country’s primary export industries drives demand for logistics facilities, cold storage and distribution infrastructure, according to new figures.
Latest Ministry for Primary Industries forecasts show food and fibre export revenue is expected to reach $62 billion in the year to 30 June 2026, up roughly 3 percent on the previous year and around 16 percent higher than two years ago.1
Growth in dairy, meat, forestry and horticulture is driving the lift, with higher export volumes putting pressure on warehousing, temperature-controlled storage and national freight networks.
Ben Stewart, director of property for Calder Stewart, the country’s largest industrial property and construction company, says if the pipeline of projects across the country in their current forward development programme is confirmed, their volume of upcoming work could easily double over the next three to five years, as export-driven supply chain demand accelerates.
He says over the past three years the company has delivered property projects worth more than $1.5 billion, including over 750,000 square metres of industrial buildings nationwide.
“When primary production is strong, the entire food supply chain needs staging, temperature-controlled storage and distribution capability. Cold storage is one of the most active areas of investment, particularly off the back of dairy and meat export growth.”
Stewart says while Calder Stewart’s property development programme spans both islands, Auckland is seeing strong demand not only from exporters but also from major retail and trade suppliers upgrading and consolidating their distribution networks.
He says NZ Safety Blackwoods’ new automated distribution centre at Drury South Crossing, developed by Calder Stewart, is an example of that market segment.
The 18,000 square metre facility brings together four North Island operations into a single high-capacity hub and integrates robotic storage and retrieval systems designed to improve throughput and accuracy.
NZ Safety Blackwoods, owned by Australian-listed Wesfarmers, supplies safety equipment, engineering consumables and industrial products to construction, manufacturing and infrastructure operators nationwide.
Stewart says the project also reflects broader structural changes across industrial construction.
“We’re seeing smaller distribution sites consolidated into larger, centralised hubs. At the same time, businesses are investing more heavily in automation and focusing on efficiency and resilience.”
He says industry facilities of this scale form a critical layer of retail and distribution infrastructure supporting the construction economy.
“Construction sites rely on consistent access to safety equipment and essential consumables. When supply chains work well, productivity improves across the sector.”
Stewart says by combining automation and consolidation, the Drury hub strengthens the country’s responsiveness to large infrastructure and commercial building programmes.
He says the asset, which Calder Stewart sold for $66.5 million to FortHill Property in late 2024, is expected to be revalued closer to $70 million following its first valuation cycle, highlighting continued investor appetite for modern industrial property tied to essential economic activity.
“This is one of the largest industrial expansions in New Zealand. When companies commit capital at this level, particularly into automation, it reflects long-term confidence in demand and in the strength of the construction pipeline.”
Stewart says land availability is another major factor influencing development decisions, particularly in Auckland’s established logistics corridors.
“We’re seeing consolidation into newer, larger facilities as occupiers look to improve inventory management and operate more efficiently. Automation is increasing storage density and speeding up fulfilment, and that is reshaping how warehouses are designed.”
“With limited green field sites coming online in strategic locations, opportunities to secure scale do not arise frequently and when they become available, businesses tend to act quickly.”
Stewart says those constraints are contributing to taller, more technologically advanced facilities, with high-bay and ultra high-bay warehouses allowing occupiers to operate vertically rather than expand outward.
“With land scarce, building up makes sense because automation allows higher-density storage while maintaining efficiency.”
Stewart says Calder Stewart now employs more than 500 people nationally and, if activity continues at the projected level, it could see workforce growth of up to 15 to 20 percent over time as property development, construction and energy capability expands.
He says large industrial builds also engage hundreds of subcontractors and specialist trades at peak construction, supporting broader regional employment.
“A lift of that scale would equate to roughly 75 to 100 additional roles across the country, spanning project management, engineering, construction and support functions,” he says.
Stewart says the company holds roughly 900 hectares of industrial-zoned land nationwide, providing capacity to respond as occupier demand emerges.
He says further major developments are planned across Auckland and the South Island over the next two years, alongside long-term industrial projects including Awarua Quadrant and Milburn Quadrant, aimed at strengthening freight connectivity and integrating renewable energy capability.
“These are long-term infrastructure decisions, and when businesses commit to facilities of this scale they are backing sustained economic activity that can also help attract other large players into the market.”
1 Ministry for Primary Industries (2025). Situation and Outlook for Primary Industries, June 2025. Wellington: MPI.
