The latest insights from the Colliers APAC team have identified five top trends that will influence corporate real estate in the second half of 2024 and many of them are emerging in New Zealand.
The five trends include sustainability-focused upgrades, diversification in property partnerships, artificial intelligence and data integration, workplace transformation for talent management, and enhanced enterprise resilience.
These key value creation opportunities have become clear based on extensive research completed across the region by Colliers.
Rob Bird, National Director of Office Leasing at Colliers, says while the New Zealand market is a unique space, some of these APAC trends are relevant to the local market.
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“Workplace transformation is a significant driver of recent market activity and focuses on key things such as post-Covid workplace design and the location of the premises. These two factors can draw more people to the office and are crucial for retaining staff,” Bird says.
“The recent change we have noticed is firms are prioritising a shift back towards more time in the office as they strike the balance between hybrid work and being connected with their colleagues in the workplace.”
Diversification in property partnerships is prevalent in New Zealand through coworking opportunities that exist and can be seen in the Bowen Campus in Wellington, which has Generator as a tenant who offers coworking flexibility for businesses.
In Auckland, the IWG Group have leased space in the under-construction office building that will be known as Fifty Albert that is due to open later this year with Spark as the anchor tenant.
“These coworking spaces continue to provide companies with the ability to be agile in a rapidly changing business environment,” Bird says.
In the sustainability space, Colliers manages the office building at 136 Fanshawe Street in central Auckland that recently became Net Zero Buildings certified by the New Zealand Green Building Council, which is the carbon neutral standard for New Zealand building operations.
This follows on from another Colliers-managed asset at 155 Fanshawe Street, which became the country’s first Net Zero Buildings certified property last year.
Research published earlier this year by Colliers noted the increasing demand for Green Star-rated premises, as companies strive to reach their sustainability goals.
In Auckland, Green Star-rated buildings have a vacancy rate of 3.8 per cent, while non-Green Star-rated buildings have a vacancy rate of 15 per cent. In Wellington CBD, it is 2.2 per cent versus 8 per cent, respectively.
Enhanced enterprise resilience has been evident in New Zealand as organisations across the public and private sectors continue to optimise their footprint to best suit their requirements.
“These strategic moves have opened up opportunities for other firms looking to rightsize their space and futureproof their operations,” Bird says.
Looking more broadly across the APAC region, Mike Davis, Managing Director of Occupier Services at Colliers Asia Pacific, says corporate real estate activity continues to pick up with improving market sentiment.
“There is a growing emphasis on flexible, high-quality workspaces that cater to evolving corporate needs. Organisations prioritising flexibility, innovation, diversification, and sustainability in their real estate portfolios and workplace strategies will be a step ahead moving into 2025.”
- Supplied by Colliers
