Office shortage hits city
Auckland is seeing a record low in vacancy rates for offices in the heart of the city.
According to Colliers International’s Auckland metropolitan office research report, vacancy rates were also falling outside the city. Outside of the central business district the vacancy rate was 6.3 per cent - well below the 10-year average of 8.2 per cent but slightly above last year’s rate of 6.2 per cent.
The city fringe is at a record low of prime office vacancy at 2.6 per cent. Research manager Leo Lee said a shortage of ‘‘prime office space’’ closer to the city centre was driving businesses to seek affordable offices more towards the outskirts of the metropolis.
‘‘As a result, metropolitan vacancies rates remain low, while rents are rising,’’ he said.
‘‘Spillover demand is driving strong growth in the metropolitan office market, particularly in areas close to good transport hub, such as the Southern Corridor of the North Shore’s Smales Farm.’’
Smales Farm on Balfour Rd in Parnell sits on land that once was home to grazing cattle. Now it is now home to Air New Zealand, Vodafone, NZI Insurance, IAG New Zealand, Sovereign, and Beef and Lamb NZ offices.
Lee said areas outside the city allowed larger businesses to house all their employees under in ‘‘more collaborative and connected workplaces’’, which could be cheaper than having a number of locations.
Auckland is facing record low office vacancy.