Few vacancies in prime CBD Auckland offices, rents rising: new study

Scott Pritchard of landlord Precinct Properties outside the ANZ Tower. Photo/Natalie Slade

Most Auckland premium CBD office towers are full, according to new research, which cites rising rents as a result of the commercial space shortage.

Paul Winstanley, head of research and consultancy at property specialists JLL New Zealand, has released a vertical vacancy review for this year's first quarter, with data on Auckland, Wellington and Christchurch office markets.

Zero vacancy rates are listed for PwC Tower on Quay St, the ANZ Centre on Albert St, HSBC House at 1 Queen St, the two East Building towers in the city, Westpac Charter in the Britomart, the AMP Centre on Lower Albert St and Zurich House at the foot of Queen St.

The Citigroup Centre at 23 Customs St, home to the American Consulate, is the emptiest. It is listed as having a 17 per cent vacancy rate. The Lumley Centre at the top of Shortland St has a 10 per cent vacancy rate. That street's premium tower, the Vero Centre, has a 3 per cent vacancy.

Winstanley said the Auckland CBD office market was characterised by "low vacancy levels, sustainably rising rents and strong investor demand." Premium Auckland CBD commercial rents are $558/sq m. Average A-grade rents are $435/sqm annually.

The popular and newly-developing Wynyard Quarter on the city's west side had zero vacancy levels. The study listed Auckland Transport, KPMG, NZI Building, ASB North Wharf, the Air New Zealand Building, Microsoft/HP, Fonterra Centre and Datacom House as having no available floor space.

"Demand continues to outstrip supply with both One55 Fanshawe now around 47 per cent pre-committed and Innovation 5B now around 60 per cent pre-committed," the study said.