Wellington CBD Office Report | Second Half 2020

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  • The Wellington CBD vacancy rate increased slightly from 5.9% in Jun-19 to 6.5% in Jun-20. There is just over 90,000 sq m of vacant space. Leasing options within the prime sector remain limited with a vacancy rate of just 0.6%, representing just below 1,900 sq m of space. Secondary vacancy increased to 8.1% the highest since Jun-2018 but well below the 20-year historical average of 10.4%

  • New supply under construction will add 48,249 sq m of space to the Wellington Office market, representing approximately 3.5% of the current office stock. However, not all space coming online will be available as over 75% of the space has already been pre-committed. 

  • Quality developments continue to receive strong tenant interest. Precinct Properties have started construction works on 40 Bowen Street, Stage 2 of the Bowen Campus transformation after receiving 74% tenant pre-commitment from EY and Fujitsu for the 10,500 sq m building. 

  • Prime gross face rents remained steady over the year for like for like properties. New benchmark rents up to $900 per sq m are expected upon completion of new developments. Current average prime gross face rents sit at $615 per sq m and average secondary rents at $338 per sqm.

  • Investor interest in Wellington’s office market remains  solid supported by the low interest rate environment and a greater level of overall occupier market stability due to approximately 35% of the CBD’s total office stock occupied by government services. A recent  Wellington CBD purchase was Oyster Property Group’s purchase of the government anchored Pastoral House for $77 million from Precinct Properties. 
     

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Wellington CBD Office Report | Second Half 2020

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Having worked in commercial real estate since 1989, Jim has 30 years experience in the industry and has been involved in the majority of Wellington’s largest office leasing deals throughout the past decade. As an owner of Colliers International Wellington, his specialisation is providing leasing solutions to corporate and Government tenants.

Before moving to New Zealand from the UK in 1994, Jim specialised in investment sales with the Bristol property firm Hartnell Taylor Cook.

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