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News Release

Wellington

Rare opportunity for Wellington Office Market


 

 

East Tamaki gem with new five-year lease/new-zealand/en-gb/news/863/east-tamaki-gem-with-new-five-year-leaseAucklandEast Tamaki gem with new five-year lease
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Leading commercial property experts Jones Lang LaSalle have begun a 'For Lease – By Tender' marketing campaign - for Radio New Zealand House in Wellington, the first time for many years that an office floor has been marketed in such a way.

The office space is located on Level 5 of Radio New Zealand House, which is situated at 155 The Terrace, Wellington CBD. It covers a large, efficient floor plate of 1,223 sqm and looks set to attract huge interest.

Steve Rodgers, National Director of Leasing at Jones Lang LaSalle, says, "Large efficient office floors are becoming increasingly rare in the Wellington office market and so we believe that we will see a high level of demand for this property.  Our client, who is very keen to attract a high quality long term tenant (or tenants) to this floor, was prepared to do something a little different with the marketing campaign so we felt that this would be a the most efficient and productive process in which to find the best tenant for the space."

Over the course of 2013, demand in general for Wellington office space has remained strong, the CBD in particular is showing optimistic signs. There has been positive absorption and a reduction in vacancy despite increases in supply due to refurbishment completions.

Recent research by Jones Lang LaSalle indicates that Prime office vacancy is now at an extremely low level - Prime stock now has less than 5% vacancy and this is only expected to fall towards the end of the year. With such a low level of vacancy combined with an occupier sector that is now looking to grow, research shows that conditions are tighter than they have been for several years.

Equally, the seismic activity the Wellington area has recently experienced has also impacted the market in a number of ways. The most immediate being the increase in leasing activity and the pickup in temporary lease contracts catering for those tenants displaced temporarily from whilst remedial works take place to their premises where they have a long term lease. Those landlords who have addressed required seismic strengthening concerns are receiving enquires whilst those with low seismic ratings that have not, are missing out as Tenants preferences shift to highly rated buildings.

Rodgers continues, "In the current market, good seismic rating is extremely important to potential tenants. This office space provides not only has a good seismic rating, is also has many other strong features to attract the right tenant. The building is located in an excellent position for ease of access both on and off the motorway as well as good proximityto Lambton Quay. The tender price is for the office space's current condition but there is a fixed additional price for a fully refurbished floor.

 "Whilst the total floor area is 1,223sqm, the floors do split into smaller tenancies as well and tenders are called for part floor tenancies (above 300sqm). Alternatively, there is additional floor space if the new tenant requires it."

The tender is for a new six year lease with the tender price representing the rental for the first three years after which a market rental review will be carried out.

Tenders close 3pm on 13 December 2013.

Media Contact: Jane Wellington

Phone: 09 366 1666

Email: jane.wellington@ap.jll.com