ROSA WOODS/STUFF
Wellington has a lot of pre-leasing so vacancies were unlikely to rise as new buildings were opened, JLL says.
Competition for prime CBD office space remains fierce in Wellington and Auckland, according to real estate firm JLL.
JLL’s Third Quarter Vertical Vacancy Review looks at vacancies in the main cities’ large commercial office buildings.
JLL said business confidence remained high and JLL was yet to see any evidence in the prime office market that any uncertainty about the economy was affecting business’ decisions regarding property.
Head of research and consultancy Paul Winstanley said real estate remained a core asset for companies to grow business.
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CAMERON BURNELL
Prime average CBD gross rents in Wellington were at $575sqm while secondary CBD average gross rents were at $345sqm.
Vacancy rates remained minimal in Wellington and Auckland while Christchurch continued to see a return to normal in the CBD office market where available space was declining.
In the capital CBD Grade ‘A’ space was scare and at a premium. Only 1500 sqm, 0.5 per cent, was available, and no more space was set to be added until late 2021 with 20,000 sqm at two new buildings on the Bowen Campus at 40 and 44 Bowen Street.
Prime average CBD gross rents were at $575sqm while secondary CBD average gross rents were at $345sqm.
Wellington had a high level of pre-leasing so vacancies were unlikely to rise as new buildings were opened.
More demand from government departments was also adding to the pressure to find office space.
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Prime rents were sitting at an average of $499sqm in the Auckland CBD and were expected to rise next year, JLL reports.
In Auckland, prime office vacancy remained low at 4.3 per cent. Prime rents were sitting at an average of $499sqm and were expected to rise next year.
Vacancy in Auckland’s four premium CBD towers – the Lumley Centre, PwC Tower, ANZ Centre and Vero Centre – was just 2.6 per cent, while the new PwC Tower at Commercial Bay due for completion in April 2020 was already 80 per cent committed.
Vacancy in the other A-grade towers was 5.1 per cent.
Almost 8 per cent of existing prime CBD space, about 29,500sqm, would become available as tenants moved to newly-built premises. That would be absorbed quickly, though, by businesses upgrading from secondary stock.
Incentives were low in the Auckland market because of a lot of pre-leasing.
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