Business tenants on the move in the race to high- quality space
Increased business activity and confidence i s encouraging more companies to move to better premises.
A significant tenant shift to new, high quality buildings has been a feature of Auckland office market over the past says, Bayleys’ director commercial, retail and operations Lloyd Budd in Bayleys’ inaugural Workplace magazine.
The publication is a new initiative to provide office tenants with the latest information, trends and opportunities in the leasing market. Budd lists factors prompting some of New Zealand’s companies to relocate: Many movers are consolidating from multiple locations. Examples include media companies NZME and Fairfax, Fonterra, Datacom, Vodafone and Auckland Transport. Budd says there are numerous benefits to consolidating to new premises.
“These include more productive workplaces resulting from larger floor plates and less time wasted travelling between different locations; increased collaboration providing innovation and growth opportunities; and cost savings from an overall reduction in space required.”
NZME’s consolidation to 8300sq m in the BDO office centre on Victoria St West in Auckland almost halved its CBD footprint. It moved from t wo locations at 46- 58 Albert St and 54 Cook St into the first three levels of this new complex which offered up to 3200sq mof highly efficient space per floor.
Fonterra’s move to new premises in Fanshawe St also reduced its average occupancy rate down to oneperson- to- 8sq m, well below the norm in a traditional desk- based system of one to 12sq m.
“While these new buildings have higher face rentals, the absolute occupancy costs for many relocating tenants are lower than where they were because less space is required to accommodate the same number of staff,” says Budd.
All new buildings have a NZ Green Building Council Green Star rating or incorporate key elements of these ratings. The environmental benefits of using less energy and water and recycled and sustainable building materials have been widely publicised.
There i s growing evidence that occupants of these buildings are healthier, says Budd. “Green buildings provide more fresh air and natural light, and things like natural building materials and having showers and bike racks for staff who cycle to work, which provide health as well as environmental benefits. Healthier staff are happier and take less sick days, are more productive and stay longer.” “The modern worker has a busy life, therefore easy access to a wide variety of amenities has become an import- ant consideration when deciding on the right workplace location,” says Budd. “
The amenities checklist also includes access to a range of food and beverage facilities, good shops, childcare, fitness centres, dry cleaning, hair salons, pharmacies, medical centres and banks. “Time is precious so the efficiencies these types of amenities bring to workers’ day- to- day lives is priceless.” Access to the latest technology, and the increased flexibility and pro- ductivity a wireless working environment provides, is also a major attraction of new premises, says Budd. “Increasing numbers of new buildings have apps to help occupants to do things like order coffee or food and book meeting spaces either from within or outside the property.”
These buildings are not just for big businesses, says Budd. “Benefits are equally accessible to SMEs. An example of this is a flagship Grid Akl building under construction in Wynyard Quarter which will provide a co- working environment for smaller, entrepreneurial companies.