New Zealand Market Highlights:
- The vacancy rate is now at 5.0 per cent, representing less than 72,000 sqm of office space available to lease – the lowest level since Colliers’ records began in the mid-1990s.
- Approximately 96,000 sqm of office space is under construction. This represents around 6.7% of current stock. Net face rents will continue to push higher over the next few years led by new-build premium rates.
- Incentives are likely to edge up slightly over the next 12 months as we near the completion of some of the major office buildings. The best tenants will secure the best terms.
- Investment activity has been strong, fuelled on by low interest rates. Both offshore and local purchasers are active.
- Office was a stand-out sector for 2018. There were almost 600 sales representing $3 billion of transactions in 2018, the strongest annual result for office since our monitoring began in the late 1980s. 2019 is already showing signs of buoyant sales activity and we expected another strong year.