Of­fice short­age hits city

Central Leader - - HEALTH & BEAUTY - JULIE ILES

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.

NIGEL MOFFIET/FAIRFAX NZ

Auck­land is fac­ing record low of­fice va­cancy.

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