Colliers International has just released their June commercial property research report of New Zealand.
The IPD/PCNZ index for the year to March 2010 is encouraging. All the main sectors have been recording negative overall returns for several quarters, as positive income returns were overwhelmed by falls in capital value. At December 2009 industrial total returns sneaked back into positive territory, and now retail has also moved from red to black. Industrial total return was 6.0% and retail 4.4% for the year to March 2010. Office continues to lag, but even that asset class improved significantly, with a total return of minus 0.5%.
Auckland CBD office vacancy for June has shown a slight decline, down to 10.6% from 11.5% in December 2009. However before spontaneous dancing in the streets breaks out, we have to point out that this is partly due to our redefinition of the CBD. Every so often we cut a bit off and relegate it to the fringe. It is more useful to look at the changes in individual precincts. The key, and biggest precinct, is the core precinct, and there vacancy declined from 14.2% to 12.6%. Of the seven precincts unaffected by our redefinitions, vacancy increased in two and declined in five. This appears encouraging but as we have noted previously, vacancy will increase again from next year. CBD retail vacancy has also declined, and this time without any redefinitions by us. Overall at 3.0% it is well down on the 5.3% in December 2009. Outside the CBD only Takapuna showed an increase but at 2.4% it is still very low by long term norms.
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Sales,
Office Leasing,
Retail,
Industrial,
Character Space,
Valuation and Advisory Services,
Corporate Solutions,
Research & Consultancy,
Auckland Office,
North Shore Office,
South Auckland Office,
Wellington Office,
Christchurch Brokerage,
Dhilan Balia,
Alan McMahon