Skip to main content Skip to footer

Prime vacancy dips north of Harbour Bridge

alt=""

Colliers International's latest North Shore office report released

The prime office vacancy rate on Auckland’s North Shore has plunged over the last year as occupier demand remains buoyant and competition for investment stock holds steady.

That’s according to Colliers International’s recent North Shore office report, which draws on survey data from the agency’s in-house research team, along with market insights from its North Shore commercial sales and leasing team.

Chris Dibble, Research and Communications Director at Colliers, says the prime vacancy rate for North Shore office space decreased to 2.8 per cent in March 2019, compared with 6.4 per cent a year ago.

At the same time, vacancy for secondary buildings increased marginally from 5.2 per cent to 5.6 per cent.

“While space is tight, there is some supply in the pipeline – although competition among occupiers remains strong.

“One notable development is a substantial new office building at 55 Corinthian Drive, Albany, which is currently under construction.

“The development will add more than 6,000sq m of prime office space, representing 1.6 per cent of the North Shore’s total office supply.

“This will only bring limited relief for occupiers, however, as pre-leasing is likely to absorb a significant amount of space.”

Janet Marshall, Commercial Manager and Director at Colliers North Shore, says there is strong competition for North Shore office investments.

“The investor appetite for well-located, high-quality office buildings remains strong, driven by sustained tenant demand for commercial space.

“Office transaction activity increased by 40 per cent from $129 million in 2017 to $181 million in 2018.”

The Colliers report found average prime yields have firmed by 20 basis points from 6.5 per cent a year ago to 6.2 per cent in June 2019.

One notable recent transaction was the $3.4 million sale of a 959sq m, two-level office building at 1/2A William Pickering Drive, Rosedale. The newly titled freehold property has 41 car parks on a 2,730sq m site.

The sale was brokered by Marshall with colleagues Matt Prentice and Shoneet Chand.

Other notable recent transactions include 33 Corinthian Drive, Albany, 62-64 Anzac Street, Takapuna, and 5 The Warehouse Way, Northcote.

At the more affordable end of the market, a 183.5sq m office unit at 75J Corinthian Drive, Albany, recently sold with vacant possession for $318,000.

Marshall says office leasing activity also remains strong. Recent deals have included:

  • 8 Antares Place, Rosedale – a 1,792sq m office with 75 car parks, leased to BCS New Zealand Limited
  • Unit F3, 4 Orbit Drive, Albany – a 368sq m office, leased to Beckoff Automation Limited
  • Unit 2B, 2 Fred Thomas Drive, Takapuna – a 500sq m office unit leased in April
  • 61 Constellation Drive, Mairangi Bay – a 360sq m office leased in February
  • Part level 2, 4 Fred Thomas Drive, Takapuna – a 550sq m office suite leased in February
  • The Colliers reports found average net face prime rents increased by 3.6 per cent, from $278 per square metre a year ago to $288 per square metre in June 2019.

New-build premises will often achieve rents above $400 per square metre.

Marshall says major infrastructure developments underway in the North Shore will provide strong fundamentals for occupier and investor demand.

Further insights, including precinct-by-precinct breakdowns, are available in the full report at colliers.co.nz

View more properties for rent in Auckland's North Shore.


Related Experts

Chris Dibble

National Director | Colliers Partnerships, Research & Communications

Auckland

Chris Dibble oversees three key business units at Colliers New Zealand - Colliers Partnerships, Research and Communications.

Colliers Partnership priorities focus on support initiatives that drive collaboration, best practice learning, cost efficiencies, and growth opportunities across the wider Colliers franchise network.

As the head of research for Colliers, Chris oversees the collaboration and delivery of award-winning research reports. He is a regular presenter and market commentator, often discussing the latest insights on current and future property trends.

Chris also leads  PR and communications for Colliers. He works with in-house and external writers to curate an audience-focused content delivery strategy. 

With over 15 years of experience and university qualifications in economics, geography, marketing and property, Chris provides a multi-disciplinary approach that assists a broad range of clients and internal stakeholders.

View expert

Janet Marshall

Director | Commercial

Auckland North

Janet is a Director at Colliers North Shore located in Takapuna and received the prestigious Women in Property award from the Property Council in 2019.

Janet was awarded Rookie of the Year in 2005, 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 a Board executive on the Takapuna Beach Business Association (TBBA) and previously on the Board of the Business North Harbour business association.  Janet was also the first female President of the Pinnacle Ski Club in Ruapehu.  Her connections are extensive, and with over 15 years at Colliers International Janet is well respected within the industry.  Janet is passionate about commercial property and is one of the leading commercial brokers in Auckland.


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

Janet's previous  transactions include:

Leasing includes:

  • Accident Compensation Corporation (ACC) 
  • Primepac Ltd 
  • The Warehouse Group 
  • New Zealand Defence Force 
  • The Skin Institute
  • Transaction Services Group
  • Kalmar Construction Ltd
  • Medical Assurance Society
  • The Crate
  • New Zealand Drug Detection Agency
  • Inland Revenue Department  
  • Property Partners  
  • Vision Accounting
  • Ministry of Education  
  • Advanced Management Systems (AMS)
  • McLaughlin Law
  • Automobile Association
  • Straker Translations 
  • 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:

  • 12, 25 Corban Avenue, Albany
  • B4, 34 Triton Drive
  • B1, 59 Apollo Drive
  • 1/3 and 2/3 Cowley Place, Rosedale
  • 18 Cowley Place, Rosedale
  • 120 Wairau Road, Wairau Valley
  • Unit 6/39 Apollo Drive, Rosedale
  • Unit B1, 34 Triton Drive, Rosedale
  • 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, Rosedale
  • 38B William Pickering, North Harbour
  • B2, 34 Triton Drive, Rosedale
  • 1A Nile Road, Milford
  • 14, 100 Don McKinnon Drive, Albany
  • B3 and B4, 17 Corinthian Drive, Albany
  • Unit 9, 100 Don McKinnon Drive, Albany
  • A1, 75 Corinthian Drive, Albany
  • B3, 210 Dairy Flat Highway, Albany
  • 104 Rosedale Road, Rosedale
  • B4, 210 Dairy Flat Highway, Albany
  • D3 and D4, 14-22 Triton Drive, Rosedale
  • 11 Apollo Drive, Rosedale
  • K, 39 Apollo Drive, Rosedale
  • 40C Triton Drive, Rosedale
  • 3A Tarndale Grove, North Harbour
  • G, 4 Antares Place, Rosedale
  • 2A and 2B, 331 Rosedale Road, Rosedale
  • B8, 210 Dairy Flat Highway, Albany
  • 46A-D Constellation Drive. Rosedale
  • B3 and B4, 72 Apollo Drive, Rosedale
  • 4B Argus Place, Wairau
  • B3, 63 Apollo Drive, Rosedale
  • D2, 63 Apollo Drive, Rosedale
  • 450 Glenfield Road, Glenfield

Notable Sales:

  • 2-4 Fred Thomas Drive ($60M)
  • ​Todd Park ($33M)
  • The Hub, Whakatane ($24M)
  • Walton Plaza, Whangarei ($13M)
  • 102 Rosedale Road, Rosedale
  • Bunnings, Whakatane
  • 51 Hurstmere Road, Takapuna
  • 27-31 Park Road, Grafton 
View expert