Auckland CBD Office Report | Second Half 2018
Auckland’s CBD prime office vacancy decreased for the first time in almost three years. Secondary vacancy has increased, but is still well below the long-term average.
Approximately 95,981 sqm of new office space will be developed over the next five years, representing 6.6% of the current total floor space. This is unlikely to satisfy occupier demand over the long-term.
Net face rents will continue to rise until more supply becomes available in 2020. Prime rental rates are forecast to increase by 3% to 5% p.a. over the next few years.
Sales activity remains buoyant in a low interest rate environment, boosted by offshore activity. Total sale value is forecast to be below the 2015-2017 highs.
Precinct Properties sold 50% of ANZ Centre for $181 million to Invesco. Blackstone purchased Goodman’s VXV office portfolio for $635 million at a yield of 6.6%. Both sales are subject to OIO approval.