Figures
Auckland Figures Q1 2023
March 6, 2023
Looking for a PDF of this content?
- Net office absorption was robust in the second half of 2022, and total CBD office vacancy decreased from 15.6% in June last year to 14.0% at the end of December. Non-CBD office vacancy also decreased, sitting at 7.5% at the end of 2022.
- The total industrial vacancy rate reduced to 0.1% at the end of 2022. In the entire market of 13.6 million sqm, only 7,623 sqm of Secondary space was vacant although, in the under-construction pipeline of circa 384,000sqm, 78,000 sqm does not have occupier commitment and remains available for lease.
- Rents in major regional centres, LFR, Grade A Non CBD office, and Premium grade CBD office are posting good growth rates. Secondary rents are under general downward pressure except in industrial where both Secondary and Prime rents show exceptional growth.
- Higher interest rates had a material impact on our assessments of indicative yields in the past two quarters, although the lack of transactional activity means that we relied heavily on CBRE’s market interactions and available bidding statistics rather than sales evidence, and aim to find the middle ground between the diverging expectations of vendors and purchasers. The result saw yields increase by 60-120 bps over 2022.