There is an improved market sentiment
post the winter blues with several sizeable
businesses recently changing hands. The
number of new listings in the hospitality sector
and the level of enquiries are both positive.
By Peter Peeters
NAI Harcourts Whangarei
City development continues apace on
numerous fronts with the recently completed
Hihiaua Cultural Centre now open. This
asset brings today’s youth into contact with
traditional Maori craftsman, ensuring the
restoration of mana for the tangata whenua
of our land.
The outlook for the Far North is one of a healthy
commercial market being fuelled by the drop
in the OCR, low interest rates and growth in
the horticulture sectors. The arrival of warmer
temperatures after a wet, miserable winter is
boosting confidence. A recent trend towards
The new Hundertwasser Arts Centre
construction is now very visible and well out of
the ground with completion due in 2021. This is
an exciting project that will bring much needed
life to the Northland region.
The new Ministry of Education office
construction is also progressing well with the
building now taking shape.
A new hotel complex on Riverside Drive and the
new District Council Civic Centre in Rust Avenue
are under development.
Major roading projects include the Porowini
Avenue upgrade in the city, Tarewa Road
State Highway 1 intersection upgrade and the
Loop Road State Highway 1 upgrade.
We are seeing some movement with regards
to larger tenant requirements. Landlords who
have had their buildings seismically upgraded
are now reaping the benefits of their foresight
with tenants preferring these options. Rental
rates are still static, but well presented
premises are attracting the higher rentals.
increasing lease rates is putting a squeeze on
some retailers in the main shopping areas and
relocations are inevitable.
There’s never been a better time to list and sell
your commercial property in the Far North.
The sun continues to rise brightly over this
sector with vacancies being virtually nonexistent
and no significant new builds on the
horizon. Rental rates for warehouse space have
crept up as high as $130 per square metre on
quality buildings when they become available
The bigger box centres like the Okara complex,
Paramount Parade and the Tarewa Centre
have waiting lists of tenants seeking space.
Whangarei District Council policy has targeted
the commercial sector with 650% loading on
the rates they pay, which has had a flow on
effect with retail vacancy in the CBD now in the
region of 15%.
Demand for good businesses remains strong.
Hospitality continues to feature in our stock
however the automotive sector is also well
represented, along with several other service
By Tony Kidd
NAI Harcourts Regional Office
Investor confidence in the Auckland
commercial market remains high, driven by a
variety of factors including low interest rates,
local demand and international interest from
off-shore institutional funds.
The latest numbers from Statistics New Zealand
indicate a robust economic outlook for
• Auckland’s gross domestic product (GDP)
in 2017 was $101.4 billion (37.5% of
New Zealand’s GDP)
• 3.4% average annual GDP growth
• $12 billion in exports in 2016
• Construction is booming with 98 cranes in
use – 66% of all cranes in New Zealand
• 2.72 million visitor arrivals in for
March 2018 year
• Technology, food and beverage, and
commercial services industries are
Auckland’s most competitive sectors
• As at February 2017, Auckland is home to
192,400 registered businesses (up 3.8%
from the previous year)
• Over 100 multinationals have their
Asia-Pacific headquarters in Auckland
Population growth is also stimulating demand.
The latest Statistics New Zealand census
data (2018) shows that the population in the
Auckland region has risen by over 150,000 since
2013 to 1,571,718, an increase of almost 10%.
The Auckland office market remains steady,
with good activity and tenant demand over the
last few months, and investment fundamentals
The Auckland CBD has seen a tightening in the
supply of quality office space, although tenants
have had options with several developments
under construction and earmarked for
completion in 2020. Demand has been aided by
business expansion and buoyant employment
numbers. There are several different precincts
that can be identified in the CBD, each having
their own characteristics, advantages and
disadvantages which are reflected in the rental
rates. Net rental rates for prime properties in
the Viaduct Harbour range from $300 to $500
per square metre, Downtown from $475 to $800
per square metre, Britomart from $450 to $650
per square metre and the Symonds Street ridge
(educational precinct) ranges from $220 to $300
per square metre.
Fringe office location such as Parnell,
Newmarket, Grafton, Ponsonby, College Hill
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