Auckland CBD Office Report | Second Half 2019

Auckland CBD’s overall vacancy rate tightened once more to an all-time low of 5.0%, the lowest since we commenced the survey over 20 years ago. The prime vacancy rate fell to 2.8% and the secondary vacancy rate fell to 6.6% compared to 3.5% and 8.1% recorded respectively last year.

Some of the immediate supply constraints for selected high-end office premises of scale are expected to ease with the addition of approximately 63,000 sqm of new premium office stock when Commercial Bay, One 55 Fanshawe and 10 Madden Street complete next year However, spaces to lease will not suit every tenant meaning supply constraints in certain sectors and precincts are likely to remain.

Average net face rent for both prime and secondary buildings are increasing with the gap between the two decreasing. Secondary rents have increased by 7.1% over the past year, reducing the gap to just around $200 per sqm.

Average prime leasing incentives are rising marginally to counter vacancies occurring in some prime premises. Also influencing the average rate of incentives will be the completion of some new CBD premises that have high face rents, but net effective rents at market rates.

Investment activity remains buoyant for 2019 driven by strong market fundamentals and low interest rates. Notable transaction include the sale of Chorus House at 66 Wyndham Street which is likely to settle later this year. The property was sold to a US based investor for $144.5 million representing a yield in the low 5.0% range. 


Auckland CBD Office Report | Second Half 2019

Related Experts
expert photo

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.

View expert
expert photo

Gareth Fraser

Auckland Director - Investment Sales

Auckland CBD

Gareth leads Colliers International's Investment Sales team. The team operates across the entire Auckland market from four strategic locations; CBD (including city fringe), South Auckland (based in Highbrook), West Auckland (based in North West Shopping Centre) and North Shore (based in Takapuna).

This is a large team of brokers and support staff focussed on providing solutions to owners, investors, developers, owner-occupiers and tenants. It features a specialised site sales team focussed on residential land and development opportunites. Investment Sales also includes the syndication division, offerring proportionate ownership opportunities to investors on behalf of clients.

Gareth is also on the Executive Team for Colliers in New Zealand.

View expert
expert photo

Rob Bird

National Director | Office Leasing

Auckland CBD

Rob has over 25 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 International, Rob held positions in Wellington and Auckland with a major international fund manager. His roles included work in property valuation, leasing, purchase and sales.

View expert