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The week in corporate real estate - 9 September 2021

The week in corporate real estate  9 September 2021

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

New Zealand corporate real estate news

  • Latest national land transport investment programme released: The central government plans to spend $24.3B over the next 3 years on land transport services and infrastructure. The plans involve 44% increase in spending relative to the previous three years with boosts for public transport, walking and cycling as well as road maintenance, safety and rail improvements.
  • Scentre Group announces sustainability commitments: Scentre Group has announced sustainability commitments for its New Zealand portfolio. The commitments include cutting at least half of scope 1 and 2 emissions by 2025 with the remaining half by 2030, and to power the portfolio by 100% renewable energy from January 2022.
  • Countdown waives rent for tenants in level 4: Countdown is waiving rent in alert level 4 for more than 60 tenants including cafes, takeaway outlets, hairdressers, restaurants, and real estate agencies who have shops in its supermarket. The supermarket will also provide 100% rent abatement and provide rent relief to non-essential tenants in level 3.
  • Hardship fund announced for businesses impacted by City Rail Link: Michael Wood and Phil Goff have announced a $12M fund for businesses that are facing hardship due to the $4.4B City Rail Link development works. The fund will be allocated over the next two years.
  • 2 Degrees reveals new headquarters: 2 Degrees has provided a glimpse into its new Auckland central headquarters. The new headquarters accommodates 800 staff from two Auckland offices and focuses on flexible working spaces.
  • Countdown opens new distribution centre: Countdown has opened its new distribution centre in Palmerston North. The opening is three weeks ahead of schedule due to lockdown demand. The $100M, 38,000 sqm distribution centre is three times larger than the prior centre.
  • New World opens supermarket in lockdown: New World has opened a new supermarket in Waimakariri during lockdown. The supermarket was built within 12 months and is expected to cater to growing demand in the area as residential developments increase.

Global corporate real estate news

  • Tesla leases new tech hub: Tesla has leased a 6,967 sqm office and research building in San Jose, USA to be used as a new tech hub. Tesla has begun construction on the interior fitout.
  • FBI announces headquarter move: The FBI announced its moving its Kansas City headquarters to Northland after signing a 20-year lease agreement for 12,719 sqm for $102M. The FBI will relocate to the new premises in 2023.
  • Uber delays office return: Uber has delayed the reopening of its offices in USA to January 2022 due to a rise in COVID-19 cases. Uber had planned to return this month before being pushed back to October. The announcement impacts more than 10,000 employees. Once employees return to the office, they can work from home at least two days a week operating under a hybrid work model.
  • Yahoo Japan plans to vacate office space: Yahoo Japan has announced plans to vacate 40% of its Tokyo office space by November due to working from home as a result of the pandemic. 10% of Yahoo’s staff have been working in the office since COVID-19 began. Yahoo has been incentivising remote work through a work from home allowance. 
  • Google extends voluntary return to office: Google has extended its voluntary return-to-office policy to January 2022 due to COVID-19. From January each office will decide when to end the voluntary return-to-office policy based on where they are located.
  • Alpha Group announces Kiwiso store opening: Alpha Group has announced the opening of the first Kiwiso store in Xiamen, China. The store opening will provide space for New Zealand businesses to introduce wellness products to the Chinese market. Alpha Group plans to open 40 Kiwiso stores in China over the next three years.
  • Apple opens new store: Apple has opened a new store in Changsha, China. The store features a double layer glass curtain wall with gradient effects integrated to the exterior wall. The new store will have 100 team members.

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


Related Experts

Chris Farhi

Director | Strategic Advisory

Auckland CBD

Chris is a Director within the Strategic Advisory team. The team helps you with your big property decisions and complex transactions.

Chris' advisory work focuses on:

  • Decision making processes (eg property strategy, business cases, feasibilities, etc)
  • Tenant representation for large lease transactions (office,  industrial and specialist-use)
  • Multi-site networks (eg consolidation strategies, optimisation, etc)

Chris’ background in brief:

  • Property strategy advisor for some of New Zealand’s most successful private sector, public sector and non-for-profit organisations.
  • Tenant representative (tenant-paid lease negotiator) for organisations ranging from small-to-medium enterprises through to major listed companies and government agencies.
  • Specialist skills in commercial leasing, financial analysis and market research.
  • Part-time lecturer at the University of Auckland Business School and commercial leasing trainer for the Royal Institution of Chartered Surveyors.

Chris’ qualifications include Honours degrees in both Civil Engineering and Property from the University of Auckland, and a Master of Philosophy from the University of Cambridge, UK. He is a Chartered Member of the Royal Institution of Chartered Surveyors.

Outside of work, Chris is a combat engineer in the NZ Army Reserve and a keen baker.

View expert

Renee Lintott

Analyst

Auckland CBD

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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