Zero vacancy in Wynyard Quarter
JLL release Vertical Vacancy Review for Q3 2018
AUCKLAND, 2 October 2018 – JLL has released their Vertical Vacancy Review for Q3 this week. The report monitors the vacancy across prime buildings in Auckland, Wellington and Christchurch. In the report it shows for the first time that Auckland's Wynyard Quarter is now fully occupied. The area is home to numerous new buildings, many with large floorplates, and will be the place to be for the America's Cup in 2021.
JLL Research Consultant Chris McCashin says, "Some big companies reside in Wynyard Quarter with the likes of Datacom and Fonterra based there. The location is popular because of its accessibility to bars and restaurants, public transport and the CBD. Many of the buildings are high spec with agile workspace environments."
Vacancy in the Wynyard Quarter, Viaduct area at the time of the Q2 VVR report was at 3.9 percent, this was due to 5,000sqm of remaining space in the Spark building and 1,700sqm in the brand new AA Insurance House. Both of these opportunities are now leased, closing off the last available prime space in the precinct.
Wynyard Quarter isn't the only area where vacancy levels are dropping. Reduced vacancy was also a factor for buildings monitored in Auckland CBD with the level now at 4.4 percent, down from 6.2 percent in Q2.
"The continued tight vacancy will see Auckland CBD rents increase in the short term. However, as new stock comes online in the second half of 2019, this may lead to more incentives being provided especially for secondary stock," says McCashin.
"There are three properties expected to be completed in 2019-2020, namely Commercial Bay which will be 37,000sqm, 10 Madden Street (Innovation 5B) in the Viaduct Harbour area of 8,180sqm and One55 Fanshawe of 17,170sqm."
Unlike Auckland, the Wellington sky-line has experienced a slight rise in vacancy with levels moving from 0.3 percent in Q2 2018 to 0.8 percent in Q3.
"Wellington's prime vacancy is also at very low levels. The reason for this slight increase is due to one and a half floors becoming available in the Aon Centre. Although we expect these will quickly be taken up given pent-up demand. Even with the two new developments at PwC Centre and 20 Customhouse Quay with approximately 25,000sqm of space entering the market, levels remain extremely low as these two new buildings are fully occupied. Due to the shortage of space we envisage more development to take place. Precinct Properties recently announced a further 20,000sqm is to be developed at Bowen Campus to assist with the supply demand imbalance," says McCashin.
Further south, Christchurch vacancy has also decreased from 6.8 percent to 5.7 percent.
"A new development for Spark, which adjoins Cathedral Square, is in the process of being completed. This aside, there are no other major developments forecast in the short term, which could lead to a further reduction in vacancy for the city," explains McCashin.