Colliers International has just released their October commercial property research report of New Zealand.
As we ride out the economic storm, commercial landlords continue to struggle with declining values, pressure on rents and increasing incentives, but in a country which finds itself on the outer edges of the economic storm. Those markets nearer the eye of the storm continue to be buffeted strongly. In Singapore for example, Colliers researchers record that for rents on Raffles Place, A grade office space has plummeted 49% this year, with many floors previously occupied by global financial services companies now lying empty. The Reserve Bank’s decision to leave the official cash rate at 2.5% today, and their accompanying statement that they don’t expect to change it “until the second half of 2010”, will reinforce the view that a level of economic stability in New Zealand can be anticipated. Sometimes being small and remote is pretty good.
We have just finished our bi-annual vacancy surveys in Auckland’s metropolitan office precincts. At an overall level of 9.5% vacancy has increased significantly from six months ago (7.4%) and twelve months ago (5.3%). Notably in Newmarket the increase in twelve months from 4.2% to 7.9%, an 88% increase overall, mirrors the increase in vacant retail space in the same period, up from 2.9% to 5.7%. We expect the rate of increase in vacancy in both retail and office markets to slow, but not to peak for around another twelve months, at which point the absence of new supply combined with static demand (rather than the negative demand experienced over the last 18 months) should produce stable conditions.
Click here to read the full report in PDF format
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Sales,
Office Leasing,
Retail,
Industrial,
Valuation and Advisory Services,
Corporate Solutions,
Research & Consultancy,
Auckland Office,
North Shore Office,
South Auckland Office,
Wellington Office,
Christchurch Brokerage,
Dhilan Balia,
Alan McMahon