Progress being made leasing a third of up to 5000sq m. Photo / Alex Robertson
Progress being made leasing a third of up to 5000sq m. Photo / Alex Robertson
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Negotiations are advanced on a deal to sub-let space in Air New Zealand's global headquarters in Auckland, the Insider understands.
There is also speculation the embattled airline may also be looking at relocating itshead office to the airport, something chief executive Greg Foran doesn't completely rule out.
Asked about the Fanshawe St head office and whether there were any plans to relocate to the airport, Foran said no decisions had been made.
"We continue to look at all costs in the business. That could be property costs, supply chain costs and where it makes sense we will make decisions that we think are right for the long-term position of the business," he said.
"[But] no decisions for example on what we might do with the location here in terms of what we call the hub, but we continue to look at it."
Air New Zealand last year advertised around a quarter of its premises for sub leasing, after it had to lay off a third of its staff.
Rob Bird, of Colliers International, said he had been marketing 845sq m to 5000sq m of the airline's high-quality, fully fitted office space at 185 Fanshawe St.
The airline has occupied the building solely for 15 years.
"We've made some progress with some of the space so we'll be updating the marketing to reflect that. It's a good chunk of that, at least a third," Bird said today of the amount of space he had under negotiation of the 845sq m to 5000sq m.
Air NZ made radical cost-cutting measures across its business, including laying off thousands of staff, after the pandemic hit last year. That meant some space in its upmarket distinctively white HQ in the Wynyard Quarter opposite Victoria Park was surplus to requirements.
Bird said the building was about 15,000sq m so leasing 5000sq m in the campaign was a portion of the total floor space. He could not say which floors were available in the six-level block but said there was "flexibility" in responding to inquiries.
Air NZ was the first and only tenant to move into block in 2006.
"It's an impressive building. The airline has looked at how people manage how they work. The reality is, we've been quite surprised. Some large corporates are making commitments," Bird said.
Air New Zealand headquarters on Fanshawe St. Photo / Alex Robertson
He referred to announcements by Air NZ and staff cuts and said it made sense therefore to seek interest from other tenants searching for prime commercial space.
In 2018, the building was part of a portfolio sold by Goodman Property Trust which owned 51 per cent. The Singaporean sovereign wealth fund GIC owned 49 per cent.
The buyer was part of giant United States investor Blackstone. In 2017, Air NZ renewed its lease for 10 more years.
Last August, the Herald reported more than a third of Air NZ's staff of 12,500 had been laid off, as there was little prospect of international services recovering from the skeleton network until well into this year, and its domestic flights were hit by travel restrictions in this country.
Bird is working with Matt Lamb on the sub-lease.
Advertising says they are the sole agents acting for Air New Zealand on 185 Fanshawe St.
"Air New Zealand has identified an opportunity to optimise its footprint at its head office and can make available from 845sq m to 5000sq m of high quality, fully fitted office space," the ad said.
"Air New Zealand's head office has two fully inter-connected buildings with highly efficient floor plates which can provide a range of configuration options to an incoming tenant subject to their needs," the agents said.
The big block was in one of the most sought-after precincts in Auckland and was a unique opportunity to secure a fully fitted turn-key office on flexible terms, the advertising said.
