Published 31 October 2014
The Property Council’s annual operating expenses benchmarks show insurance premiums for commercial property in the Wellington cbd have more than doubled since 2010 and are 175% higher than in Auckland.
The publication shows insurance rates for commercial property in Wellington’s cbd at $22.11/m²/year, versus $8.05/m² in Auckland.
Property Council Wellington branch president Mike Cole said yesterday Wellington properties had faced huge insurance rate rises since the Canterbury earthquakes, and a time series analysis (a small sample) showed the rate in the capital had risen from $9.63/m² in 4 years.
Rates appeared to have peaked last year, but owners of many older buildings still faced far higher rates than the pre-earthquake levels.
Despite the high insurance rates, the opex survey showed overall total operating expenses in the Wellington cbd matched those in Auckland, which had higher operating costs (including energy, administration & heating, ventilation & air-conditioning.
The opex benchmark survey covers 96 office buildings & 29 shopping centres, with a combined total rentable floor area of more than 1.3 million m².
Attribution: Property Council release.