Auckland, 30 October 2014 – Auckland business confidence is high, with office occupiers focusing on growth and investing in high quality space to lift productivity, morale and efficiency, according to CBRE’s 2014 Auckland Office Occupier Survey, which was launched today at a symposium of over 100 office occupiers.
159 companies responded to the survey, covering 600,000 square metres of space, equating to 20% of the total Auckland office market.
The survey has shown that Auckland business confidence is substantially higher than the NZ trend shown by other recent surveys, with 68% of CBRE survey respondents expecting conditions to improve for their business over the next 12 months.
Key themes revealed by the survey include:
- Economic conditions are enabling occupiers to focus on growth - which the survey shows is the factor with the largest influence on real estate strategy
- Occupiers show clear preference towards high quality new space – with 79% of respondents saying that they would prefer Prime grade space if price was not a factor (64% with price)
- Workplace transformation techniques have been implemented but lack a strategic approach – with low levels of unassigned seating implemented in all size categories
- Productivity and efficiency increase through quality upgrade and thoughtful workplace change offset higher occupational costs – with staff morale rated as having ‘greatly’ or ‘somewhat’ improved by 83% of respondents as a result of relocation, and 61% of respondents saying that office layout has a significant impact on improved morale and productivity, resulting in an 8% average increase in productivity.
Zoltan Moricz, CBRE’s Senior Director of New Zealand Research, says: “Occupiers are investing in high quality space to lift morale, efficiency and productivity, and they are clearly saying that the benefits of doing so are outweighing the costs.
“What companies are saying is that having the right space and changing the way they work leads to increased efficiency and more productivity.”
Tony Armstrong, Associate Director, Global Corporate Services in CBRE’s Sydney office, also presented to the audience around Workplace Strategies and the opportunities from WELL certified offices, as well as discussing the emerging workplace practices and innovations. CBRE offices worldwide have embraced the Activity Based Working format in the Sydney, Melbourne, Hong Kong, LA, Hawaii and Tokyo offices and are instrumental in integrating this strategy with clients throughout the world.
The panel discussion had representatives from ANZ, Vodafone, Fletcher Building, DLA Phillips Fox, who discussed how leading corporates use their office space to enhance their company’s culture and performance. Newcrest Properties looked from the other side as a developer of some of Auckland city’s most distinctive recent office buildings and presented their views on providing the office premises demanded by occupiers.
About CBRE
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
