New Zealand office market snapshot Q2 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.
2022 has seen the continuation of workspace strategies evolving, with an increase in requirement from occupiers towards employee health and wellbeing and fulfilling green initiatives. Quality office spaces will remain a key strategy for occupiers as part of their retention and attracting of staff.
While overall vacancy has increased in the Auckland CBD, there is an uneven spread of occupancy across the city on a building-by-building basis. Meanwhile vacancy among offices on the Auckland city fringe has decreased. However, with the borders due to open there is an expectation for investment enquiry to increase along with the ‘great return to work’ which will see occupancy levels rise once more.
Vacancy rates in the Wellington office property market illustrate a unique story with prime increasing minimally to a mere 1.1%, while secondary vacancy decreased to just 4.3%. Occupation is being driven by government tenants and lack of office supply, however there are a number of office developments in the pipeline with many offering mixed use. While these are predominantly already fully pre-leased, this is expected to create a quantum of backfill space in A-grade buildings.
While there were no office completions in Christchurch for the first quarter of 2022, there are many developments in the pipeline including 28 in the central business district alone. As a consequence of the historically low vacancy levels among prime office offering, demand for secondary properties has been bolstered.
Average net rents across the spectrum remain stable, as do yields.
- When can we expect occupancy levels to increase?
- Does the power now sit with occupiers of landlords?
- What office projects are in the pipeline for Auckland, Wellington, and Christchurch?
Find out more below