Christchurch, 16 March 2016 - The calibre of buildings coming onto the Canterbury market has never been seen before in the region. The recent quake on 14 February demonstrated the quality of the new buildings, with all of them surveyed faring exceptionally well in the tremors.
Faced with a built landscape of such a high calibre - particularly for office and retail buildings - there are a number of opportunities ahead for both building owners and occupiers.
Building owners have become very adept at moving with the market and at recognising their properties as high quality premises with good fitouts, and representing good value for money to prospective occupiers. The opportunity for new entrant owners to the market is to diversify: consider the prospect of creating ground floor retail in an office block, for example. Prior to 2011, we didn’t see a great deal of diversified buildings but in 2016 there is real demand for mixed-use properties that attract new foot-traffic and offer added amenity for building occupiers.
There is a good amount of building supply on offer for tenants, who can pick and choose the most attractive location and premise for their business operations. There is also significant room for tenants to negotiate good rental deals with their landlords, who may be seeing lower monthly rental income but due to longer lease terms being agreed upon, owners now have much-needed revenue certainty for the future.
Despite these windows of opportunity, property strategy is a key challenge for both occupier and owner. People have been stuck in their ways for a few years, which is understandable given the change the region has seen. However, now that there are a number of viable options in the commercial property market, I’d encourage tenants and landlords to think more strategically about decisions being made when it comes to property requirements.
For property owners, this means thinking about building location and tenant attraction. Have parking, access and amenity been allowed for? Tenants should consider whether their own customers will be happy to come to a new location, or if their existing premise allows the business to function as required.
Both tenants and owners should ask themselves: are we putting up barriers through our property decisions? That question and the answers that flow on from it should give people a useful starting point to start thinking more strategically about their choices and how they can make the most of the high calibre opportunities in Christchurch’s commercial property market.
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 2015 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 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.