New vacancy data for the metropolitan Auckland office markets this month show an encouraging trend. Just as economic decisions such as the setting of the Official Cash Rate have a lag time before they have any effect, so the impact of minimal new suburban office supply since 2008 is at last manifesting itself in reduced vacancy. The other variable in the equation is demand of course, which needs to be expanding to reduce vacancy given static supply, and this is now occurring.
Overall vacancy fell from 11.49% in March to 10.24% in September. That’s still over 172,000m² of empty offices. Three quarters of that is in secondary quality space. By way of comparison there is 143,000m² vacant in the CBD, so using our average Auckland occupational density of 16.1m² per workstation, there’s enough empty space to accommodate nearly 20,000 extra office workers across the city.
Southern Corridor vacancy increased marginally, from 7.51% to 7.74% but still remains much lower than North Shore (11.83%) and City Fringe precincts (10.25%). Within these areas, individual precinct results varied. For example Mairangi Bay and Albany were up, to 15.78% and 10.90% respectively, but Takapuna’s reduction from 12.35% to 10.73% enabled the North Shore to record an overall decline in vacancy.
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Sales,
Office Leasing,
Retail,
Industrial,
Character Space,
Research & Consultancy,
Auckland Office,
North Shore Office,
South Auckland Office,
Wellington Office,
Christchurch Brokerage,
Dhilan Balia,
Alan McMahon