Vertical Vacancy Review Q3 2020 (special edition)
Normally a bi-annual publication, this special edition of the Vertical Vacancy Review provides a clearer and timelier picture of the unprecedented circumstances in New Zealand’s office leasing market.
Only two months since we published our findings on office property availability, there is more evidence for the emergence of a two-tier vacancy market – actual vacant accommodation versus the market for sub-lease space which can also be referred to as ‘shadow vacancy’.
For landlords, actual vacancy (defined as vacant space which isn’t producing rent) continues to be recorded at low levels in Auckland, Wellington, and Christchurch.
The anticipated ‘flight to quality’ has reduced vacancy for the most premium/high ‘A’ grade buildings, especially in Auckland. This is undoubtedly bolstering short-term income returns for investors and simultaneously demonstrates the occupier market for our best space is still active.
For savvy occupiers, the growing amount of sub-lease space available across the three cities we monitor is providing much greater options.
Read more about the Auckland, Wellington and Christchurch office markets in our Q3 2020 report.
