Prime vacancy dips north of Harbour Bridge

Prime vacancy dips north of the Harbour Bridge 1536x1040

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


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Chris Dibble

Director | Research & Communications

Auckland CBD

Chris Dibble oversees the delivery of award-winning research reports, PR and Communications for Colliers International New Zealand. With over 13 years of experience and university qualifications in economics, geography, marketing and property, Chris has a  multi-disciplinary approach that assists a broad range of clients in their strategic decision making. Chris is a regular presenter and market commentator with an extensive network of media contacts to discuss the latest insights on current and future property trends. Chris also works with in-house and external writers to curate an audience-focused content delivery strategy for Colliers.

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Janet Marshall

Director | Manager Commercial

Auckland North

Janet is a Director and Manager Commercial Colliers North Shore located in Takapuna.  She was awarded Rookie of the Year in 2005, awarded 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 an Executive on the Takapuna Beach Business Association (TBBA) and previously on the Board of the Business North Harbour business association.  Janet is a member of the North Harbour Club and and previously President of the Pinnacle Ski Club.   Her connections are extensive, and with over 17 years at Colliers International Janet is well respected within the industry.  Janet is passionate about commercial property and is one of the leading brokers on Auckland's North Shore.

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

Janet's previous  transactions include:

Leasing includes:
Inland Revenue Department  |  Property Partners  |  Vision Accounting
Ministry of Education  |  Advanced Management Systems (AMS) |  McLaughlin Law 
Automobile Association | Straker Translations  |  Accordo Limited
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:

2019 (Q1 and Q2):

  • 120 Wairau Road, Wairau Valley
  • Unit 6/39 Apollo Drive, Mairangi Bay
  • Unit B1, 34 Triton Drive, Mairangi Bay
  • 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, Mairangi Bay

Previous Notable Sales:

2-4 Fred Thomas Drive (60M) | Todd Park ($33M)  |  38B William Pickering, North Harbour  |  B2, 34 Triton Drive, Mairangi Bay                                                                          
The Hub, Whakatane ($24M)  |  1A Nile Road, Milford  |  14, 100 Don McKinnon Drive, Albany
Walton Plaza, Whangarei ($13M)  |   B3 and B4, 17 Corinthian Drive, Albany  |  Unit 9, 100 Don McKinnon Drive, Albany
Bunnings, Whakatane  |  A1, 75 Corinthian Drive, Albany  |  B3, 210 Dairy Flat Highway, Albany 
104 Rosedale Road, Mairangi Bay  |  B4, 210 Dairy Flat Highway, Albany  |  D3 and D4, 14-22 Triton Drive, Mairangi Bay
11 Apollo Drive, Mairangi Bay|  K, 39 Apollo Drive, Mairangi Bay  |  40C Triton Drive, Mairangi Bay
51 Hurstmere Road, Takapuna  |  3A Tarndale Grove, North Harbour  |  G, 4 Antares Place, Mairangi Bay
2A and 2B, 331 Rosedale Road  |  B8, 210 Dairy Flat Highway, Albany  |  27-31 Park Road, Grafton
46A-D Constellation Drive. Mairangi Bay  |  B3 and B4, 72 Apollo Drive, Mairangi Bay  |  4B Argus Place, Wairau                     
B3, 63 Apollo Drive  |  D2, 63 Apollo Drive, Mairangi Bay  |  450 Glenfield Road, Glenfield

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