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The week in corporate real estate - 7 October 2021

NZ_AucklandCBD_StrategicAdvisory_The week in corporate real estate  7 October 2021

A weekly update of the biggest corporate real estate news from New Zealand and around the globe.

New Zealand corporate real estate news  

  • Government announces tenancy measures to support businesses and tenants: The government has announced an amendment to the Property Law Act to insert a clause into commercial leases requiring a fair proportion of rent to be paid where a tenant has been unable to fully conduct their business due to COVID-19 restrictions. Arbitration and mediation will be used for tenants and landlords who are unable to reach an agreement. The changes aim are ensuring that landlords and tenants share the financial burden. 
  • Restaurant Euro to closeEuro in central Auckland has announced it will be closing after 22 years. The decision was largely due to the ongoing challenges of COVID-19.  
  • Hamilton City Council announces rent relief for council tenants: Hamilton City Council has announced its plan to dedicate $122,000 to provide 100% rent relief for council tenants impacted by COVID-19 alert level 3 and 4 restrictions. $61,000 will be available to fund a 50% rent relief for tenants impacted by COVID-19 alert level 2 restrictions. Tenants must occupy a council-owned premises, operate in retail, hospitality or the community sector, and show evidence of financial hardship. 
  • Willis Bond granted lease for development: Wellington City Council has approved a 175-year lease to Willis Bond for a mixed-use development in central Wellington. The development will comprise 15,000 sqm of retail, hospitality, office, apartments, and a hotel. The development was originally proposed in 2016.
  • KiwiRail signs lease at new business hub: KiwiRail has signed a 20-year lease at the $100M Blue Mountain Campus business hub in Upper Hutt. KiwiRail will occupy 2,700 sqm in the refurbished Buddle Building and 1,300 sqm for a new train control room. 
  • Ngāi Tahu Property and ACC break ground on development: Ngāi Tahu Property and ACC will begin construction of a new office building in Dunedin at the end of this year. The development involves transforming a car park into an 8,000 sqm office building and is expected to be completed in 2024. ACC will lease the building on a 20-year term.  

Global corporate real estate news  

  • Singaporean fund manager purchases Woolworths Sydney headquarters: Singaporean fund manager AIMS APAC REIT has purchased the Woolworths Sydney headquarters for $463.25M. The A-grade office campus is fully leased to Woolworths with a remaining 10-year term and rent escalation of 2.75% per annum.  
  • PwC announces changes to work from home policy: PwC has announced that 40,000 USA based staff will have the opportunity to work from home anywhere in the USA. The announcement applies to staff with clients including auditors, consultants, and tax professionals whilst IT professionals are required to stay in the office. The policy is aimed at helping to retain and attract talent.  
  • Designer shops open at New Jersey mall American Dream: The American Dream Mall in New Jersey has opened a new 10,219 sqm designer section called The Avenue. The new shops within The Avenue include Dolce and Gabbana, Hermès, Saint Laurent, Mulberry, Gucci, and Louis Vuitton.  
  • NHL store opens in New York: The new NHL store in New York has opened. The 836 sqm store spans across two floors and is double the size of its previous store. A feature of the store will be a 60-by-80 ice rink in the centre of Manhattan West’s public plaza where NHL will host special experiences. 
  • Renault considering downsizing office space: French carmaker Renault is considering downsizing its Paris office space by 50% by 2025 to save costs. By reducing office space Renault could save at least £60M. Approximately 20% of Renault’s offices were unoccupied before COVID-19. 
  • IKEA launches first Close to You concept store: IKEA has launched its first Close to You concept store in Hong Kong. The 278 sqm store focuses on the digital experience by offering self-pick-up lockers, a 2-metre-high interactive screen for furnishing inspiration, and a Swedish cooking interactive screen featuring recipes. The store will have 110 home furnishing products and 120 Swedish food products including meatballs, salmon, and condiments.

Contact property consultant Chris Farhi at Colliers Strategic Advisory to request an email notification for this weekly update.


Related Experts

Renee Lintott

Strategic Analyst

Auckland

Renee was the recipient of the Blair Hargrave/Colliers  Scholarship in 2019 before joining the  Strategic Advisory team as an analyst in the same year. Renee worked part time in the team for 2 years whilst completing  her tertiary qualifications and joined full time in mid 2021. 

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