logo redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading collection external-link2 internal-link share-link icon-close2
New Zealand
  • Global
  • United States
  • Albania
  • Argentina
  • Australia
  • Austria
  • Bahrain
  • Baltics
  • Belgium
  • Bosnia & Herzegovina
  • Brazil
  • Bulgaria
  • Cambodia
  • Canada
  • Chile
  • Colombia
  • Croatia
  • Czech Republic
  • Denmark
  • Egypt
  • Finland
  • France
  • Germany
  • Greece
  • Hong Kong
  • Hungary
  • India
  • Indonesia
  • Ireland
  • Israel
  • Italy
  • Japan
  • Jordan
  • Kazakhstan
  • Kenya
  • Korea
  • Kuwait
  • Latin America
  • Luxembourg
  • Mainland China
  • Malaysia
  • Mexico
  • Montenegro
  • Morocco
  • Netherlands
  • New Zealand
  • North Macedonia
  • Norway
  • Oman
  • Pakistan
  • Panama
  • Philippines
  • Poland
  • Portugal
  • Romania
  • Saudi Arabia
  • Serbia
  • Singapore
  • Slovakia
  • Slovenia
  • South Eastern Europe
  • Spain
  • Sweden
  • Switzerland
  • Taiwan
  • Thailand
  • Turkey
  • Ukraine
  • United Arab Emirates
  • United Kingdom
  • Venezuela
  • Vietnam
Log In
  • Global Intranet
  • myCBRE
  • Services
    • Business Lines
      • Advisory & Transaction Services
      • Capital Markets
      • Global Workplace Solutions
      • Property Management
      • Valuation & Advisory Services
    • Industries & Specialties
      • Build-to-Rent
      • Building, Depreciation & Cost Consultancy
      • Hotels
      • Industrial & Logistics
      • Office Leasing
      • Retail
      • Self Storage
      • Sustainability
      • Flexible Workspace
    • Services for Investors
      • Debt & Structured Finance
      • Host
      • Institutional Investments
      • International Investments
      • Investment Advisory
      • Property Sales
      • Structured Transactions and Advisory
      • Leasing & Advisory
      • Metropolitan Investments
      • Property Management
      • Valuation & Advisory
    • Services for Occupiers
      • Enterprise Facilities Management
      • Host
      • Leasing & Advisory
      • Portfolio Services
      • Project Management
      • Transaction Management
      • Valuation & Advisory
      • Workplace
  • Properties
    • Office
      Industrial
      Retail
      Land
  • Research & Insight
    • New Zealand Research
      Asia Pacific Research
      Global Research
      COVID-19 INSIGHTS
      Insights & Expertise
      Talking Property Podcast
  • People & Offices
    • New Zealand Executive Committee
      Pacific Executive Committee
  • About CBRE
    • Careers
      Case Studies
      Client Tools
      Corporate Information
      Corporate Responsibility
      Investor Relations
      Media Centre

Previous

Press Release
Volume of sales pulls back in the capital but total dollar value still strong thanks to a prominent sale

Next

Press Release
Strategic corner-front property on point at 363-365 Remuera Road
  • Home
  • About CBRE
  • Media Centre
  • Lack of big dollar transactions underpins quieter second half of 2018

Lack of big dollar transactions underpins quieter second half of 2018

Auckland | 19 March 2019
  • Email
  • Share
  • Tweet
  • Share

Auckland Commercial Property CBRE

Office sales lead the market followed closely by industrial

All regions experienced a dip in commercial property transactions during the second half of 2018, but market activity was still strong for the year, according to research by CBRE New Zealand.

CBRE New Zealand’s Investment Transaction Monitor report confirmed 90 commercial properties of over $5 million with a total value of $1.6 billion changed ownership in the second half of 2018.

Office was the largest transactional sector during the period with $606 million or 38% of total sales volume followed closely behind by industrial sales which contributed 33% or $535 million to the market total. In retail there were 12 sales in the $5 million + bracket.

In Auckland, there were 69 sales in second half of 2018 totalling $1.1 billion and accounting for 69% of total volume.  The industrial market was very strong in the city, with 31 industrial buildings selling for a total of $439 million while 14 office buildings were sold for a total of $303 million.

The report confirming four transactions above $50 million over the period with the largest being the sale of Foodstuffs Distribution Centre in Mount Roskill to Goodman for $93 million. While eight development sites sold for a total of $124 million and the sales of retail properties in Auckland contributed $110 million across nine transactions.

In the capital seven transactions above $5 million totalling $279 million. Transactions for the period were dominated by one in particular – the sale of Spark Central at 40 Willis Street by CBRE for $198 million from a local private investor to a local syndicator. This sale also represented the largest ever single transaction in the capital. Other notable transactions included the sale of two hotels which sold for a total of $47 million.

In Christchurch, a stronger second half of the year was underpinned by 14 sales totalling $241 million predominantly in the office and industrial sectors. The largest of these was a $54 million transaction of Castle Rock Business Park at Innovation Road.

In terms of vendors, the report confirms that mainly private owners were selling during the second half of 2018, making up 64% of transaction volume. While Privates are also the main purchaser group, accounting for 43% of transactions nationally, their current market share of purchases is below their long-term average of 55%. By contrast, institutions sold $259 million and acquired $480 million across the period which reverses the previous ten years’ norm of being a net seller for this investor group.

Foreign funds were also net buyers, accounting for $208 million of purchases during the second half of 2018 while selling $173 million worth of property. Overseas purchasers were dominated by Asia-Pacific investors mainly from Malaysia, Australia, Hong Kong and China.

Senior Research Analyst at CBRE New Zealand, Moshe Szweizer says looking back over the past decade we saw a decline in the market share of lower end transactions in the second half of the year.

“In the last six months, lower end of deals ($5-$10 million) accounted for nearly half of all transactions while upper end of deals was around a quarter of total volume. However, this is not a dramatic shift in the market and can be balanced with the fact that total sales volume for the year was at $4.8 billion, a result only surpassed during 2014”.

Brent McGregor, Executive Chairman at CBRE New Zealand, says, “The first quarter of 2019 has seen the 2018 momentum continue with a handful of large transactions that were mooted in late 2018 being completed.

“We have also seen some new opportunities come to market, particularly in the office sector, and at this stage there appears to be as much demand as ever for good quality New Zealand assets.”

For New Zealand/international news or global stories, follow us on Twitter.

ABOUT CBRE GROUP, INC.

CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2018 revenue). The company has more than 90,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 480 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

Media Contacts

Adeline O'Connor
Adeline O'Connor
Associate Director - Marketing
New Zealand
Marketing & Communications
+64 9 359 5418
  • Corporate Information
  • Corporate Responsibility
  • Media Center
  • About CBRE
  • Careers
  • People & Offices
  • Executive Committee
  • Investor Relations
  • Contact Us
  • Global Web Privacy and Cookie Notice
  • Complaints and Dispute Resolution Procedures
  • Sitemap
  • Terms of Use
  • LinkedIn
  • Twitter
  • Youtube
  • Facebook
  • Instagram
CBRE Limited and CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)