Auckland office market in flux, experts suggest
Diversification of the Auckland office market is accelerating, as commercial precincts emerge and grow beyond the traditional city centre, say Colliers International leasing specialists.
The latest annual Colliers Lease publication showcases a wide range of office locations, from Auckland’s established CBD through to rapidly emerging markets such as South Auckland and the North Shore.
Colliers Auckland leasing director Matt Lamb, says high-calibre tenants are looking beyond the CBD for their office leasing needs.
“An excellent example is Auckland Airport’s innovative office precinct, The Quad, which has attracted bluechip companies such as Meridian Energy, Qantas and Harrison Grierson.”
Lamb says the newest addition, Quad 7, is a collaborative working environment with state-of-the-art shared facilities and some of the lowest operating expenses in Auckland.
Colliers is leasing the top two levels and naming rights. Up to
3,600sq m of premium office space is available, including smaller tenancies of between 150sq m to 250sq m.
Closer to the city is the Southern Corridor office precinct, which is on the up as CBD office rents continue to rise.
Lamb says two of the largest commercial centres are on Great South Rd, between the Greenlane and Ellerslie motorway interchanges. Both offer excellent bus, train and motorway access, along with extensive on-site amenities including generous car parking ratios, cafes, childcare and gym facilities.
The Millennium Centre, managed by Oyster Property Group, is a hub of seven office buildings, with more than 40 businesses employing some
2500 staff. Office spaces of between
238sq m to 4500sq m are available to lease.
Goodman Property’s nearby Central Park Corporate Centre is a thriving community of 11 multi-level office buildings, housing more than
60 businesses and 2,100 employees. Office spaces of between 200sq m to 4,900sq m are available to lease.
Lamb says the North Shore has also earned a reputation as one of Auckland’s leading office locations.
“Smales Farm in Takapuna continues to redefine the standard for premium office space north of the Harbour Bridge,” he says. “Worldclass amenities include expansive landscaped grounds, a dining precinct, on-site fitness facilities, and access to the Northern Busway.”
Office space is available to lease in the Air New Zealand Building and the
11,000sq m B:Hive serviced office. Flexible leasing options are available, making the B:Hive suitable for one to
250 workers.
Leasing director Sam Gallaugher says Auckland CBD properties are well represented in the latest Colliers Lease. “From the landmark Commercial Bay tower through to Vocus House in the Victoria Quarter, the quality of CBD office developments in the pipeline has never been higher.” He says tenants are demanding new, efficient and flexible working spaces — and appetite for large floor plates shows no signs of diminishing.
“Office leasing activity remains very strong, with the last three years ranking as the strongest on record at Colliers. Last year, we brokered some of Auckland’s most significant leasing transactions, including the leasing of premises in Commercial Bay and finding new office spaces for Vocus Communications, Xero, Gentrack and Tegel.”
Heart of the City Chief Executive Viv Beck says the CBD is at the centre of the economy, generating some 17 per cent of Auckland’s GDP and 7 per cent of New Zealand’s. “With low commercial vacancy rates and more people working here, it’s apparent this is where businesses — and their staff and clients — want to be.
So how does being located here benefit business?
Critically, it is about proximity or agglomeration — businesses can literally bump into their clients and collaborators here. Sometimes referred to as “a knowledge spillover”, these face-to-face connections are enabled by a dense and compact city centre — and they help drive business productivity.”
Beck says businesses are also choosing the CBD because it’s an increasingly attractive and vibrant place to be.