New Zealand office market snapshot Q1 2022
JLL’s New Zealand Office Market Snapshots provide property insights into how the office market is faring within Auckland, Wellington, and Christchurch.
Our real estate market research is based on data from several reputable sources including on-the-ground insights from our own departments. Reading our office property insights from the previous quarter will help to guide your property decisions in the quarters ahead.
Despite Auckland facing lockdown restrictions for the duration of the second half of 2021, the general sentiment in the Auckland office property market is that the office has a more important role than ever for staff wellbeing, collaboration, and as a means of recruitment and retention. As such, the flight to quality trend is strong with occupiers seizing the opportunity to move up the grade spectrum.
Vacancy rates in the Wellington office property market continue to decrease to extremely low levels, with occupation driven my government tenants and lack of office supply coming into the market. There are a number of office developments on the horizon though, and while these are predominantly already fully pre-leased, this is expected to create a quantum of backfill space in A-grade buildings.
Demand for offices is exceeding supply in Christchurch with high leasing enquiry and vacancy levels for both prime and secondary stock at record lows. In the short term, tenants looking in the CBD may need to consider secondary locations. Given the demand and supply disparity, office investment interest from investors outside of the region remains strong and is expected to continue through 2022.
Some of the questions answered in the latest report include:
- How have the recent COVID restrictions affected office vacancies?
- Does the power now sit with occupiers of landlords?
- What office projects are in the pipeline for Auckland, Wellington, and Christchurch?