Wellington CBD Office Report | Second Half 2019

Wellington CBD Office Report | Second Half 2019

Strong tenant demand and limited availability of prime office stock has resulted in a further reduction in vacancy rates. The 5.9% overall vacancy rate is the lowest recorded since December 2008.

The supply pipeline is forecast to increase over the next few years through ongoing refurbishment and seismic strengthening, as well as the construction of new buildings. There is 50,000 sqm of space undergoing project works that is forecast to be reintroduced to total stock over the next 12 months.

Not all space to be introduced will be available for lease. Examples include approximately 11,800 sqm of space at 8-14 Willis which is 100% leased to Crown Entity, Statistics New Zealand. Refubished Harbour City Centre (29 Brandon Street) will add over 3,500 sqm to the city’s office stock. The building is leased to financial technology firm FNZ.

Average prime gross face rents increased to $534 per sqm up from $502 per sqm last year. Yields firmed 20 basis points to 6.4% compared to 6.6% a year ago. Average gross face CBD Core rents range between $335 per sqm to $660 per sqm. New-build activity is commanding above current benchmark rental rates.

MSCI’s Property Index for Wellington CBD Office properties showed a total return of 11.1% in the year to March 2019, the highest annual return since 2008.


Wellington 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

Richard Findlay

Managing Director

Wellington (Agency)

As an owner of Colliers International Wellington Richard has been involved in all aspects of the business and specialises in high value transactions and development opportunities.

He has over 25 years experience in commercial property and been involved in a large number of Wellington’s biggest sales.

Richard offers his clients a strong understanding of the wider commercial market whilst still delivering specialist advice across different property sectors. With a global breadth of local knowledge at hand, he takes a personal interest in ensuring his clients are kept well informed of the Wellington property market.

Richard began his career with commercial leasing and later sales and spent three years with central London property firm Gooch & Wagstaff. Between his expertise, knowledge base and the networks he maintains, he prides himself on being one of Wellington’s best informed brokers.

Richard was formerly on the Wellington committee for the NZ Property Council and is a past chairman for the Wellington branch of the NZPI.

View expert
expert photo

Jim Pinson

Executive Director

Wellington (Agency)

Having worked in commercial real estate since 1989, Jim has 30 years experience in the industry and has been involved in the majority of Wellington’s largest office leasing deals throughout the past decade. As an owner of Colliers International Wellington, his specialisation is providing leasing solutions to corporate and Government tenants.

Before moving to New Zealand from the UK in 1994, Jim specialised in investment sales with the Bristol property firm Hartnell Taylor Cook.

Since 1999 Jim has managed Wellington’s most experienced office leasing team, with a current combined experience of over 70 years to their name. He handles opportunities across the whole office leasing market but his major strengths lie in advising on long-term relocations and lease restructuring projects.

Jim has been a director and shareholder at Colliers since 2004. He prides himself on his professionalism and skill in ensuring that projects are run to the client’s total satisfaction. His focus remains on taking those clients through a process that is cost-effective, enjoyable and as simple as possible.

In addition to his two decades’ experience, Jim’s strengths also lie with the established networks he maintains across the corporate and government sectors, encompassing a variety of complementary professions and skillsets. Jim has the connections and the resources to get the job done.

View expert