Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Auckland CBD office rents rising

Auckland CBD office rents rising despite supply pressures easing

Auckland, March 16, 2018

Auckland CBD office rents are continuing to climb despite supply pressures easing slightly over the last year, new research shows.

Colliers International’s Auckland CBD Office Market Snapshot, released today, shows the overall CBD office vacancy rate remains low, at 5.9 per cent.

Research and Consulting National Director Alan McMahon says the prime vacancy rate is 4.3 per cent, up from 2.8 per cent a year earlier, while the secondary vacancy rate is 7.0 per cent, up from 6.7 per cent.

Colliers’ projections show the prime vacancy rate is expected to drop to a low of 3.1 per cent in June 2019, before peaking in December 2020 at 6.0 per cent.

McMahon says despite supply pressures easing slightly, there is still a lack of options available for tenants in the market.

“This will accelerate rental growth upwards in the short term. Growth will moderate in 2019-20 when more supply arrives, but will still be positive.”

Net prime CBD office rents are at an average of $471 per square metre, up from $444/sq m a year earlier. Secondary rents are at an average of $264/sq m, up from $253/sq m.

McMahon says Auckland’s strong growth continues to attract investment interest from offshore, with further yield compression expected.

“Prime yields are at 6.5 per cent, down from 6.8 per cent a year ago, while secondary yields are at 7.6 per cent, down 8.1 per cent.”

McMahon presented the latest office research results to a 300-strong audience at the first Colliers Research Meets the Road event of 2018, which was held at the Pullman Hotel in Auckland this morning.



The guest speaker, Housing and Transport Minister Phil Twyford, spoke to theme of Releasing Auckland’s Potential.

McMahon says the office research is the first in the new Colliers Essentials series, which aims to present the latest research findings in a timely, easy-to-digest, graphic-rich format.

The single-page format is more up-to-the-minute than Colliers’ previous multi-page reports, which took longer to produce. It is also digital-only, ensuring it is more sustainable than previously printed reports.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Tax Bill Passes, Drops: “An End To Unnecessary Secondary Tax”

“The changes mean Inland Revenue will more closely monitor the tax paid by wage and salary earners through the year. If it appears the worker is being over taxed, Inland Revenue will suggest a more suitable PAYE tax code tailored to that worker.” More>>

ALSO:

Ethiopian Airline Crash: Boeing 737 Max Aircraft Operations Temporarily Suspended

New Zealand’s Civil Aviation Authority has suspended the operation of Boeing 737 MAX aircraft to or from New Zealand. Currently this affects only one operator, Fiji Airways. There are no other airlines that fly this aircraft type to New Zealand. More>>

ALSO:

Sorting Out DNA: Crime-Busting Software Wins Top Science Prize

Software developed in New Zealand that has contributed to identifying suspects in tens of thousands of criminal cases around the world has won the 2018 Prime Minister’s $500,000 Science Prize. More>>

ALSO:

In The High Court: IRD Wins Tax Avoidance Case

Inland Revenue has won a High Court case against Eric Watson’s Cullen Group over a nearly $52 million tax debt. More>>

ALSO:

Insurers Withdraw From Market: Plea For EQC Rethink

A consumer watchdog wants the government to rethink the Earthquake Commission (EQC) as more people are pushed out of getting property and contents insurance. More>>

ALSO:

Women's Day: New Zealand Rated Third Best In OECD For Working Women

New Zealand has been rated among the top countries in the world for working women. The Women in Work Index rated New Zealand third in the OECD and it was the only country outside Europe to make the top 10. More>>

ALSO: