Source: Colliers International Research
Auckland CBD Offi ce Market Indicators - Quarter One 2009
* Assuming fully leased at market rates
MREINZAuckland CBD Offi ce
COLLIERS INTERNATIONAL MARKET INDICATORS REPORT
QUARTER ONE | 2009
FORECAST (6 MONTHS)
Our Knowledge is your Property
Slowing Not Stalled
What are the prospects for next year when offi ce
vacancies remain low, most new buildings are
already leased, big investors are absent from
the market and the economy is in a recession?
It is a time for consolidation.
Despite some companies shelving expansion
plans, we estimate there is still demand for
50,000m² to 60,000m² of offi ce space from
businesses that want an Auckland CBD address.
Although the CBD skyline is dotted with cranes,
they are likely to become an increasingly rare
sight in the next two years as the diminishing
availability of credit, cautious tenant demand
and dropping capital values of completed
projects combine to make development a
diffi cult proposition.
Most of the prime space under construction has
been leased with the exception of 21 Queen
Street, which is being completely remodelled by
AMP New Zealand Offi ce Trust (ANZO). This is
one of the few options for large corporate tenants
looking for quality offi ce space next year.
Since our last report in April 2008 several major
tenants have secured new space in Auckland’s
CBD. The most recent is professional services
fi rm Ernst & Young, which will move its staff in
early 2011 to 9500m² of premium grade space at
Cooper and Company’s East Building complex
On the downside, when Ernst & Young, Westpac,
Deloitte, BNZ and others, move to new premises
in the next couple of years they will leave behind
empty offi ces some of which may prove diffi cult
to back fi ll.
Net absorption was negative for the second half
of 2008, the fi rst negative result in three years.
The overall CBD vacancy level measured end-
year at 7.7% was the second lowest rate since our
bi-annual survey bega