DHL
Each of these case studies was written shortly following completion of the relevant development or other significant lease-related event. While accurate at that time, in some cases, circumstances have changed, including PFI’s ownership of the property, the identity of the tenant, property specific metrics (including rent) and/or use of the property.
Overview
DHL, a global logistics leader, has been a tenant at 7-9 Niall Burgess Road, Mt Wellington, Auckland, since 1996. In a successful negotiation with Property for Industry, DHL extended its lease until 2020 with a right of renewal.
DHL moves stuff. With a presence in 220 countries, they claim to be the logistics company for the world, ensuring that what needs to be delivered, gets delivered.
Not surprising then, that – in New Zealand – DHL is a PFI tenant. Our fifth largest, in fact: at 7-9 Niall Burgess Road, Mt Wellington, Auckland. They’ve been there since 1996 and their lease was due to expire in October 2016…
We can tell you that we are the experts in industrial property and that we understand industrial tenants, but that rhetoric is put to the test in the give-and-take of tough negotiations like this one. Global companies like DHL know what they want and they expect to get it. What they wanted was to stay at Niall Burgess Road, but what they expected was that the numbers would stack up.
They’re staying. After months of intricate, amicable, multi-faceted deliberations, we have reached an agreement with DHL that extends the lease until March 2020, with a right of renewal beyond that. They’re happy; we’re happy. They continue to deliver. And so do we.
