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News Release

Wellington

Character space that ticks all the boxes

JLL marketing 26 The Terrace, Wellington


 

 

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​​20160303_NZMA renderexterior no windows small-min.jpgJLL is marketing a brand-new 100% New Building Standard (NBS) office space for lease or sale.  ​

Following the November 2016 earthquake, which rocked Wellington and saw buildings both old and new decommissioned, office space in the city has been snapped up as the shortfall takes effect.

At the time, the New Zealand Medical Association (NZMA) building at 26 The Terrace was already undergoing a major redevelopment and now meets the market with what is high quality (A Grade), new office space in the heart of Wellington CBD. 

The office space is being marketed by JLL agents Andrew Fullerton-Smith and John McKenzie. Says Fullerton-Smith, “The property has a rich history, having been owned by the NZMA since the 1920s. In 1938, the NZMA built a three-storey building it has owned ever since. The property was already undergoing redevelopment when the November 2016 earthquake hit. The 2017 new building is now first class, while retaining the character façade and charm it has always had. 

“Approximately 90,000sqm of stock was removed due to the earthquake, so this opportunity comes to the market at a perfect time, due to the lack of available stock.”

Current stock levels indicate just 3,500 sqm of vacancy in the A Grade area out of a total of 290,000 sqm.  More pressing is the availability of space in the northern end of town (Thorndon/Terrace) whereby less than 1% of stock is available until Bowen Campus is completed in 2020.  26 The Terrace will relieve some pressure on what is a very tight part of town for the availability of space offering good quality character space.

Three floors are currently available. Levels two and three are both 194sqm, and level four is 184sqm. The NZMA will occupy levels five and six, while the ground floor will be the new flagship for popular French café, La Cloche.

Fullerton-Smith says the Xero building on the corner of Taranaki and Wakefield Streets is undergoing a similar redevelopment. “With recent events, tenants demand on issues such as structural stability has become top of mind. The NZMA property is a great example of what is now a new, six-level building, strengthened to 100% plus NBS. It also retains the art-deco façade of the original, offering modern office facilities with a heritage touch.”

The property is in the highly sought-after professional services precinct on the western side of The Terrace and is only a block away from the Beehive making it an ideal location for businesses that deal with government on a regular basis. 

“New tenants will benefit from a number of high-quality services, including access to fibre optic cabling, air conditioning and security card access to all floors,” says Fullerton-Smith. “The space would be attractive to professional services firms wanting to occupy a whole floor with structural integrity, in a prime CBD location.” ​

JLL’s Associate Director of Research and Consulting, Tom Barclay notes that office vacancy is only 0.3 per cent in the Thorndon area and sits at only 5.3 per cent across the entire CBD post the 2016 earthquake – vacancy at these levels has not been seen since 2009. 

“Vacancy rates at the A grade level have been low, sitting at around 3% from 2014-2016 and tracking down.  At the end of 2015 and throughout 2016, vacancy in A Grade space dropped from 3% to1% highlighting demand for buildings with high NBS ratings and tenants seeking quality stock.  During our last survey in for the first half of 2017, vacancy in the A Grade market was sitting at just 1.2%.  

“The three levels of office space in the NZMA building will add much-needed stock to Wellington’s CBD,” says Barclay. “With tenants prioritising a high NBS rating in the wake of the November 2016 earthquake, this building represents a fantastic opportunity for tenants.”

The office space will be available from September 2017.