Figures

Wellington Figures Q1 2023

March 6, 2023

During H2 2022, CBD office vacancy was largely stable at 7.5%. Premium grade remained very tight with less than 1,000 sqm vacant, but Grade A vacancy has increased due to relocations into new supply creating backfill as well as some occupiers rationalising their space requirements.
The market witnessed the removal of several office buildings due to strengthening and refurbishment works. These were partly offset by the completion of new built and refurbished buildings.
Office rent growth is positive. Prime office rents increased more than Secondary, driven mainly by the robust increase in the Premium submarket.
Industrial vacancy remained stable at 2.4% although with material variation between precincts and grades. There is no Prime vacancy. Good rates of rental growth continued into Q4, resulting in a 10.3% annual increase for Prime grade.
Low levels of transactional activity continue to hamper calls on pricing but CBRE’s assessment of market trends resulted in yield increases of 45-70 basis points in the past year across the various sectors.