Auckland Metro Office Report | Second Half 2019

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  • Occupier demand remains solid. In the past year, the overall metropolitan vacancy rate has decreased from 6.7% to 5.6%, with quality office space receiving the strongest enquiry. Prime vacancy rates reduced to an all-time low of 3.3% and secondary vacancy rates reduced to 6.3%.
  • Occupier demand for higher-quality premises has led to over 25,000 sqm of office stock to be removed from the survey for refurbishment works. One example is the 107 Carlton Gore Road refurbishment by Argosy who is targeting a green star rating for incoming tenant Housing New Zealand Corporation.
  • Over 28,000 sqm of new office stock has been added into the metropolitan office market this year. Notable examples include, 84 Don McKinnon Drive (AIG House), 33 Broadway (Mercury House), 96 St Georges Bay Road (Xero) and 195-199 Universal Drive (Morrisons Business Park).
  • Limited space and steady employment provide the impetus for metropolitan office average net face rents to continue rising. Average net face prime rents now sit at $325 per sqm and secondary at $215 per sqm.
  • Lower interest rate expectations are driving investor demand. Average yield compression for the 12-months to September 2019 was 60 basis points to 6.2% for prime office stock and 70 basis points to 7.1% for secondary office stock. Investment opportunities are becoming more difficult to source at these yields.
  • Sales activity remains buoyant and competition is strong for quality assets. Private investors, owner-occupiers and syndication companies are the most active. Earlier this year, Stride Property Group settled on the ASB Bank tenanted property at 33 Corinthian Drive. Property and Funds Manager Oyster Management purchased the property for $50.5 million representing a yield of 5.88%. Settled in august this year, a local private investor sold 57 Market Road for $11.6 million to an Australian-based investor representing a yield of 5.78%.

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Auckland Metro Office Report | Second Half 2019

Related Experts
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Chris Dibble

Director | Research & Communications

Auckland CBD

Chris Dibble oversees the delivery of award-winning research reports, PR and Communications for Colliers International New Zealand. With over 13 years of experience and university qualifications in economics, geography, marketing and property, Chris has a  multi-disciplinary approach that assists a broad range of clients in their strategic decision making. Chris is a regular presenter and market commentator with an extensive network of media contacts to discuss the latest insights on current and future property trends. Chris also works with in-house and external writers to curate an audience-focused content delivery strategy for Colliers.

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Gareth Fraser

Auckland Director - Investment Sales

Auckland CBD

Gareth leads Colliers International's Investment Sales team. The team operates across the entire Auckland market from four strategic locations; CBD (including city fringe), South Auckland (based in Highbrook), West Auckland (based in North West Shopping Centre) and North Shore (based in Takapuna).

This is a large team of brokers and support staff focussed on providing solutions to owners, investors, developers, owner-occupiers and tenants. It features a specialised site sales team focussed on residential land and development opportunites. Investment Sales also includes the syndication division, offerring proportionate ownership opportunities to investors on behalf of clients.

Gareth is also on the Executive Team for Colliers in New Zealand.

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Matt Lamb

Director

Auckland CBD

Matt started his commercial leasing working for CBRE Melbourne before returning to New Zealand where he has spent the past nine years building an extensive industry network working for JLL and Colliers International..

Matt believes the best solutions come from listening to the Tenant, gaining a thorough understanding of the business needs, and having superior market knowledge and insight. With a strong focus on end-to-end leasing solutions focusing on medium to large businesses within the Auckland CBD and city fringe.

Job satisfaction comes from finding the right solution for the Tenant through a structured ‘current reality to desired reality’ process designed to ensure the best property solution. This includes initial investigation and summary, analysis of market, site selection and lease negotiation.

He has consistently been a top tier performer in Auckland for office leasing and prides himself on strong and enduring relationships in the market.

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Janet Marshall

Director | Manager Commercial

Auckland North

Janet is a Director and Manager Commercial Colliers North Shore located in Takapuna.  Janet was recently awarded the Woman in Property 2019 award from the Property Council.

She was awarded Rookie of the Year in 2005, awarded Marketer of the Year in 2013 and promoted to Director in 2016.  .

Janet specialises in office and retail sales and leasing, and investment sales.  She is also an Executive on the Takapuna Beach Business Association (TBBA) and previously on the Board of the Business North Harbour business association.  Janet is a member of the North Harbour Club and and previously President of the Pinnacle Ski Club.   Her connections are extensive, and with over 17 years at Colliers International Janet is well respected within the industry.  Janet is passionate about commercial property and is one of the leading brokers on Auckland's North Shore.

See LinkedIn Profile at  https://www.linkedin.com/pub/janet-marshall/a/27a/a98

Janet's previous  transactions include:

Leasing includes:
Inland Revenue Department  |  Property Partners  |  Vision Accounting
Ministry of Education  |  Advanced Management Systems (AMS) |  McLaughlin Law 
Automobile Association | Straker Translations  |  Accordo Limited
Carter Holt Harvey  |  Goodwin Turner Commercial Lawyers  |  Smartpay NZ Ltd
New Zealand Institute of Education  |  Waitemata District Health Board  |  Invenco Group Limited
Kiwibank  |  Leading Edge Telecom  |  North Harbour Business Association
IMS Health  |  CCH NZ Ltd  |  Northern Health School 

Sales include:

2019

  • 1/3 and 2/3 Cowley Place, Rosedale
  • 18 Cowley Place, Rosedale
  • 120 Wairau Road, Wairau Valley
  • Unit 6/39 Apollo Drive, Mairangi Bay
  • Unit B1, 34 Triton Drive, Mairangi Bay
  • Unit 1, 31 Northcroft Street, Takapuna
  • Unit 106F Bush Road, North Harbour
  • 8B, 331 Rosedale Road, North Harbour
  • 3 Milford Road, Milford
  • D4, 14-22 Triton Drive, Mairangi Bay

Previous Notable Sales:

2-4 Fred Thomas Drive (60M) | Todd Park ($33M)  |  38B William Pickering, North Harbour  |  B2, 34 Triton Drive, Mairangi Bay                                                                          
The Hub, Whakatane ($24M)  |  1A Nile Road, Milford  |  14, 100 Don McKinnon Drive, Albany
Walton Plaza, Whangarei ($13M)  |   B3 and B4, 17 Corinthian Drive, Albany  |  Unit 9, 100 Don McKinnon Drive, Albany
Bunnings, Whakatane  |  A1, 75 Corinthian Drive, Albany  |  B3, 210 Dairy Flat Highway, Albany 
104 Rosedale Road, Mairangi Bay  |  B4, 210 Dairy Flat Highway, Albany  |  D3 and D4, 14-22 Triton Drive, Mairangi Bay
11 Apollo Drive, Mairangi Bay|  K, 39 Apollo Drive, Mairangi Bay  |  40C Triton Drive, Mairangi Bay
51 Hurstmere Road, Takapuna  |  3A Tarndale Grove, North Harbour  |  G, 4 Antares Place, Mairangi Bay
2A and 2B, 331 Rosedale Road  |  B8, 210 Dairy Flat Highway, Albany  |  27-31 Park Road, Grafton
46A-D Constellation Drive. Mairangi Bay  |  B3 and B4, 72 Apollo Drive, Mairangi Bay  |  4B Argus Place, Wairau                     
B3, 63 Apollo Drive  |  D2, 63 Apollo Drive, Mairangi Bay  |  450 Glenfield Road, Glenfield

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