Southern corridor vacancy has dropped below 7%, Bayleys Research said in its report out this week on the Auckland city fringe & southern corridor office markets.
The drop in southern corridor vacancy was a big turnaround from last year, when Manson Developments Ltd (Ted Manson) had just completed the Meridian Centre and it was still 87% empty. The precinct’s vacancy rate then was about 20%.
Now the 9200mÂ² development is fully leased, with tenants such as Mainland Products Ltd, the Ministry of Social Development and Courts Department all committed to long leases. Avanti Finance, which moved locally, has naming rights.
2 investment syndicates recently bought the centre for $26.7 million on a 9% yield.
Manson has now begun building Trinity Park, 20,000mÂ² of office space in a 3-building office park on the former Daihatsu site on Great South Rd, Greenlane.
Other developments include:
205 Great South Rd, 3190mÂ² in a 4-level retail & office building
666 Great South Rd (Central Park), Macquarie Goodman Industrial Trust has a 4-level addition planned for Central Park, each floor with 2000mÂ² floorplates
Ascot office park (Ellerslie racecourse), a 5-level building with 8600mÂ² of office space on 3 levels and 2 parking floors is planned beside the Ibis hotel.
Tenants in the finance sector have become the biggest occupancy group in the southern corridor, followed by Government, pushing information technology back from first to third. Health is the fourth-biggest sector and property fifth.
Bayleys Research noted that, as well as strong growth in development & tenanting of new buildings, other office grades were also enjoying increasing occupancy, indicating a wider spectrum of office users had chosen the corridor as a business location.