Colliers | Colliers Essentials Auckland CBD Office Report

Occupier demand for CBD office space continues to grow with vacancy the lowest rate recorded since surveys began two decades ago. Both prime and secondary rates are low.

There is 63,000 sqm of office space in the Auckland CBD currently under construction and an additional 8,000 sqm under refurbishment. These projects are expected to be completed by 2021. Approximately 72% is pre-committed.

Strong tenant demand and limited space has pushed rents higher for Premium grade assets. Prime rental rates are forecast to increase by 3% to 4% p.a. over the next few years until additional supply enters the market over the next two years.

Low interest rates and investment activity fuelled by local and offshore activity will see pressure on prime yields to edge down further over 2019.

Increased rents and a firm yield outlook bode well for investors and total return profiles. MSCI’s Property Index for September 2018 shows a total return of 12.6% for CBD office, the highest annual return since pre-GFC.

Auckland CBD Office Report | First Half 2019

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Related Experts

Rob Bird

National Director | Office Leasing

+64 9 356 8803

+64 21 358 188

Rob has over 28 years commercial property experience specialising in Office Leasing, Commercial Property, Financial Analysis and Valuation. He is the National Director of Commercial Leasing. In a prior role he was responsible for the National Property Management business. His current focus covers Office Leasing and Tenant Representation nationwide, particualrly in the Auckland CBD. Prior to working for Colliers, Rob held positions in Wellington and Auckland with a major international fund manager. His roles included work in property valuation, leasing, purchase and sales.

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Sam Gallaugher

Director

+64 9 356 8960

+64 21 885 474

As Director of Office Leasing, Sam leads the Auckland CBD team of 12 brokers and support staff to connect tenants with the very best spaces for lease across the CBD and city fringe. Sam has over 20 years of commercial property experience with ten years at Colliers International and five years leading the Auckland CBD leasing team. Sam has a thorough understanding of the Auckland office market and has developed strong relationships with some of the city’s largest office owners and occupiers.

Prior to joining Colliers in 2010, Sam worked in the South Auckland leasing and sales market before taking up an international transfer to work in London in the West End Office market. Sam spent six years in London specialising in office leasing, acting for both tenants and landlords.

Sam now specialises in Auckland CBD leasing and has been instrumental in some of the largest deals in the city. Most recently the leasing of the brand-new, PWC Tower at Commercial Bay, acting for Fidelity Life with their relocation to 136 Fanshawe Street and stay put negotiations for The Australian Consulate, Morgan Coakle and Haigh Lyon.

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