Competition for prime office space in NZ’s two biggest cities remains tight

by Roxanne Libatique31 Oct 2019

Competition for prime CBD office space remains fierce in Auckland and Wellington as employers focus on providing quality workspace for their employees.  

JLL New Zealand’s “Third Quarter Vertical Vacancy Review” revealed low vacancy rates and strong pre-leasing activity for space that is expected to be available over the next two years – with vacancy in Auckland’s four premium CBD towers (ANZ Centre, Lumley Centre, PwC Centre, and Vero Centre) now only at 2.6%.

Graham Kristiffor, head of Auckland office leasing at JLL, said he expects the remaining prime CBD space to be absorbed quickly.

“Businesses are increasingly seeing the value rather than the cost of providing high-quality office space for their staff, as they consider this a key factor in enhancing engagement, loyalty and productivity,” Kristiffor said.

“In-building amenities, co-location with complementary businesses and proximity to transport nodes are far more appealing to today’s worker than an available parking space.”

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Meanwhile, JLL leasing negotiator Isaac Hunter noted sustained demand in Wellington, driven by a “high-level of pre-leasing and the increasing footprint of government departments.”

“Argosy’s $64 million redevelopment at 8-11 Willis Street is a good example of the current Wellington market dynamic,” Hunter said. “This will deliver 11,000 sqm of Grade ‘A’ space by 2021 – which will be taken under a 15-year lease by Statistics New Zealand.”

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