Auckland Metropolitan Office | Second Half 2018
Overall metropolitan office vacancy increased to 6.7% in September 2018, compared to 5.1% a year ago. The main driver of the increase was the pockets of vacancies in recently completed office buildings.
Since the beginning of the year, there has been over 38,660 sqm of office space completed across the metropolitan market, including 22 Pollen Street, St George Corporate Centre, Kiwi Property’s No.1 Sylvia Park and Goodman Property’s The Crossing, Building 6.
Average prime metropolitan office net face rents have risen by 3.1% in the last year and average prime capital values rose by 8.7%.
Many metropolitan office landlords, especially in the City Fringe, are upgrading their buildings. These newly refurbished buildings are receiving rental premiums and longer lease terms.In July, 109 Carlton Gore Road in Newmarket sold for $28 million and Oyster Property Group and its joint venture partner, KKR settled the $209 million purchase of Central Park Corporate Centre.