Skip Ribbon Commands
Skip to main content

Vertical Vacancy Review

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

Vertical Vacancy Review

Vacancy survey on a building by building floor by floor basis in Prime office buildings

Compare Quarters:

From To
To 2016 Q1

Please choose your 2nd Category!

Compare
Compare quarters here
2015 Q1 2015 Q3
  • Occupied
  • Under Refurbishment
  • Car Parking
  • Retail
  • Vacant
  • Available Sublease
  • Under Construction
  • Other

Compare Quarters:

From To
To 2016 Q1

Please choose your 2nd Category!

Compare
Compare quarters here
2014 Q3 2015 Q1
  • Occupied
  • Under Refurbishment
  • Car Parking
  • Retail
  • Vacant
  • Available Sublease
  • Under Construction
  • Other

Compare Quarters:

From To
To 2016 Q1

Please choose your 2nd Category!

Compare
Compare quarters here
2015 Q1 2015 Q3
  • Occupied
  • Under Refurbishment
  • Car Parking
  • Retail
  • Vacant
  • Available Sublease
  • Under Construction
  • Other

Compare Quarters:

From
From 2015 Q3
To
To 2016 Q1
Compare
Compare quarters here
2015 Q3 2016 Q1
  • Occupied
  • Under Refurbishment
  • Car Parking
  • Retail
  • Vacant
  • Available Sublease
  • Under Construction
  • Other
40%
Financial & Insurance Services
22%
Professional Scientific, Technical Administrative & Support services
20%
Transport Postal & Warehousing
18%
Information Media & Telecommunications

What's happening in the market?

  • Prime vacancy sits at 2.4% at structural levels

  • ex-Fonterra Centre recently vacated *building is consented to be altered to residential units and is now withdrawn from the vacancy review

  • Prime tenants looking to accommodate growth = tenants are facing very limited available premises space in the Premium +Grade A office markets driving rentals higher

  • Demand continues to remain strong in 2016 as tenants continueto seek out quality space.

What’s happening in the market?

  • Prime office vacancy tight at 2.8%

  • Demand from the private sector for prime office space remains high with tenants seeking out greener, safer and more modern premises.

  • Strong competition for quality office space has continued to push rents higher in 2016. Limited availability of prime premises has resulted in fewer options for tenants, with many being forced to consider lower quality alternatives.

  • Average prime yields have seen compression, driving the average to 7.9% and are forecast to firm to 7.0% in late 2016.

  • Strong demand for high quality office space has fuelled a healthy development pipeline including the new 10,000sqm office development located on Site 10 on the waterfront. This is largely 44% preleased to PwC. Construction is set to commence in 2016 with completion by mid-2018.

What’s happening in the market?

  • Overall core CBD vacancy at 17.6% and is forecast to increase as new supply continues to hit the market

  • In excess of 80,000 square metres of office space will be delivered over 2016

  • Landlords are becoming more willing to split larger floor plates to accommodate smaller tenants

  • Over 70% of total office stock is classed as A Grade with limited B and C grade space available.

  • The government occupied Justice Precinct will be delivered in 2016 – 40,000sqm building that will alone will bring 2,000 people to the CBD daily.

  • Over 3,000 car parking spaces currently under construction to cater to office and retail demand

What’s happening in the market?

  • A waterfront driven shift has been sustained and continues in 2016

  • Demand for office space in areas close to Wynyard, Britomart and the Viaduct

  • Prime office vacancy rate 5.7%

  • An additional 30,000sqm prime office space expected by mid-2018 =relief to increased levels of market demand as development pipeline begins to enter the market.

Download the Vertical Vacancy Review Q1 2016

|

Contact Us

Mark Grant

mark.grant@ap.jll.com

+64 21 0270 2404

Justin Kean

justin.kean@ap.jll.com

+64 21 302 257

James Thorburn

James.Thorburn@ap.jll.com

+64 21 716 026

Contact Us

Mark Grant

mark.grant@ap.jll.com

+64 21 0270 2404

Justin Kean

justin.kean@ap.jll.com

+64 21 302 257

Andrew Fullerton-Smith

Andrew.Fullerton-Smith@ap.jll.com

+64 21 896 060

Contact Us

Mark Grant

mark.grant@ap.jll.com

+64 21 0270 2404

Justin Kean

justin.kean@ap.jll.com

+64 21 302 257

Nick Cape

nick.cape@ap.jll.com

+64 22 458 0876

Tom Barclay

tom.barclay@ap.jll.com

+64 27 350 4356

Contact Us

Mark Grant

mark.grant@ap.jll.com

+64 21 0270 2404

Justin Kean

justin.kean@ap.jll.com

+64 21 302 257

James Thorburn

James.Thorburn@ap.jll.com

+64 9 3630 250

Other links