Colliers International has just released their latest New Zealand CBD Office Market Indicators report.
Reduced rental growth expectations, combined with thin investor and tenant demand have combined to depress office property value, across the country during 2009.
Net face rentals in the Auckland prime CBD office market are down around 8.0% in the last 12 months. Wellington is proving more resilient so far, but with similar dynamics to Auckland in the next two years, we expect to see significant net effective rental reductions there. Christchurch has actually recorded increasing face rents for A grade offices, reflecting the face rents required to make the development of the new Club Tower feasible, but in all three markets incentives are on the rise, reducing net effective rentals quite significantly.
Incentives vary widely from building to building and landlord to landlord, but the one thing that is consistent across owners and cities is that incentives are rising. Despite that, very few businesses have actually moved so far this year.
Office sales over $2 million in the three centres were 64.0% lower in 2008 than 2007. Although the early part of 2009 suggested further declines this year, transactions recently completed or known to be imminent may well take 2009's total transaction value to a higher total value than last year's.
Click here to read the full report in PDF formatPrint this article or Email to a friend
Sales,
Office Leasing,
Valuation and Advisory Services,
Corporate Solutions,
Research & Consultancy,
Auckland Office,
North Shore Office,
South Auckland Office,
Wellington Office,
Christchurch Brokerage,
Dhilan Balia,
Alan McMahon