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We have completed our CBD office vacancy surveys for Auckland and Wellington and the results appear on page two. In Wellington, all grades show increased vacancy but as forecast, it is the lower grades that are suffering most. Secondary CBD offices now have 11.3% vacancy up from 7.7% a year ago and 8.2% in June 2010. Total vacancy is now higher than Auckland which on a historical basis is quite unusual. As major tenants decant into their new premises over the course of the year this figure will rise further. In Auckland CBD vacancy has reduced, now at 9.6%.

Having made gains during 2010, Premium grade is back up to the December 2010 level of 14.3%, the highest of any grade except D. Note that this is only CBD stock. Karangahape Rd and it’s environs are not in our view in the CBD as far as office tenants are concerned, and so the recently vacated Telecom building in that area is not included in these figures. The relocation of all Telecom staff from there to the new Victoria Street West HQ has had a significant impact on those two CBD fringe precincts, which we will analyse in our in-depth Auckland Metropolitan Office report in March.

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