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NZ cbds rare positives in Asia/Pacific

Auckland vacancy rate 11.6%, Wellington 7.9%

Colliers Jardine says in its latest Global office real estate highlights the Auckland & Wellington office markets are among only half a dozen central business districts in Asia & the Pacific escaping the global downdraft affecting the slowly recovering US and recessionary Europe.

Auckland had an 11.6% vacancy rate and Wellington 7.9% in the 1st half, among the lowest in 19 cbds surveyed.

Auckland rents, at $430/m² gross (though most Auckland office space is leased on a net basis), climbed 1.8% in the 1st half. Wellington’s rose 1.4% to $375/m² gross. Both markets are predicted to keep on improving.

Colliers International corporate services director Alan McMahon said the absence of speculative office development & the strong economy, coupled with low interest rates, should sustain the momentum for a few years.

He believed the conservative outlook in the office market and the reasonable balance between supply & demand would keep the market steady.

Mr McMahon said there would be demand in the next 2 years for another major office building in both Auckland & Wellington.

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