The commercial landlord that owns Auckland’s $1 billion Commercial Bay precinct and PwC Tower, is charging companies 17 per cent more in rent for new leases across its premium office buildings, the chief executive has revealed.
Scott Pritchard told Markets with Madison it increased commercial rents by that much last year upon renewal, but no company was struggling to pay - in fact, there was so much demand for office space, Precinct could push through more rent increases this year.
“We’ve actually seen levels of people in offices that we haven’t seen before Covid. Our portfolio is actually full.”
Precinct’s net rental income grew 9 per cent in the six months to December, although it suffered a 98.5 per cent drop in net profit as the valuation of its property portfolio fell by $53.6 million. While that was an unrealised paper loss, Pritchard said it was still of concern.
![Precinct Properties, owner of the $1b Commercial Bay precinct and PwC Tower, saw its valuation drop by about $53m in the six months to December. Photo / Supplied](https://www.nzherald.co.nz/resizer/v2/6HCG2PNZEWTHU3BSS74EUPMQMY.jpg?auth=35dbe7c6d45e5564f2b032d2ae55ba97ee06fb994d98e1898f0bd4469dcec11b&width=16&height=11&quality=70&smart=true)