Despite the ongoing challenges for office sector occupation posed by the Covid-19 pandemic, leasing activity remains solid in New Zealand’s biggest city with confidence still robust in the sector as people return to work for the year.
Sam Gallaugher, director of office leasing at Colliers, says even during last year’s lockdown, Auckland’s office leasing market was active as businesses looked to secure workspaces that enabled them to attract and retain staff, improve culture, wellness, and productivity as well as securing space that provided environmental benefits.
Notable leasing agreements in Auckland during the second half of 2021 concluded by Colliers included Chorus leasing 3,100sq m of sublease space at 5 Graham Street, Vector leasing some 5,000sq m of space at 110 Carlton Gore Road in Newmarket alongside Metlifecare who leased 2,400sq m, and the Special Group leasing 1,468sq m of office space at 202 Ponsonby Road.
Kakariki Hospital Limited leased 4,000sq m of space in Tower 1 at 9-15 Marewa Road in Greenlane.
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In August last year, in one of the biggest leasing deals in a decade, BNZ announced they would expand their presence at 80 Queen Street, leasing 21,000sq m of floor space, while also securing the building’s naming rights from 2024.
The move was made to bring more of their staff under one roof, meaning employees at the BNZ Quay Park site at 30 Mahuhu Crescent will also move to 80 Queen Street.
Meanwhile, Colliers also helped lease more than 3,000sq m of floor space in Britomart at the Sofrana and Barrington buildings, which are undergoing refurbishment and are due for completion in the third quarter of this year.
“Demand for quality workspaces remains high among firms as they look to create working environments that are desirable for staff and will suit their varying needs,” Gallaugher says.
“While the pandemic continues to present a unique set of hurdles to overcome, confidence in the sector remains strong and 2021 was a positive year for office leasing.
"The key theme for this year is that premier assets will remain highly attractive as people transition away from second-tier spaces.”
While many companies have embraced aspects of remote, or flexible, working arrangements, Gallaugher says the office remains a hub for productivity.
“New Zealand’s high vaccination rates have given another dose of confidence to people as they return to work following last year’s lengthy lockdown.
"The traffic light system provides businesses with the opportunity to bring their staff back to the workplace in a safe and controlled environment.
“The ongoing drive for sustainability among firms is also pushing them to look for leasing opportunities in buildings that are environmentally friendly and will ensure they can have a positive impact on the planet as firms ramp up their environment, social and governance policies.
“While we expect vacancy rates to start to come off the highs of 2021 as we move into 2022, major new opportunities are arising over the next couple of years for occupiers to consider.”
Looking further into the future, the major developments in Auckland at 50 Albert Street and 35 Graham Street loom as exciting options for businesses looking to utilise environmentally friendly buildings. Both buildings are on track to be completed in early 2024.
Construction is also about to begin on Stage 3 of Precinct’s Wynyard Quarter development that is set to provide innovative office solutions. It has an expected completion date of late 2024.
Fifty Albert will comprise 12 levels of offices plus ground floor retail, a rooftop terrace and four levels of parking on the corner of Mills Lane and Albert Street in the heart of Auckland’s CBD.
The building will have a 6 Green Star rating from the New Zealand Green Building Council.
It will also be carbon positive and aims to be one of the first of its kind in New Zealand to meet the WELL building standard. WELL is a performance-based system for measuring, certifying, and monitoring features of the built environment that impact human health and well-being, through air, water, nourishment, light, fitness, comfort, and mind.
Meanwhile, 35 Graham Street, is also set for a state-of-the-art refurbishment and the building is located near a number of notable amenities, including Victoria Park, Les Mills gym, Wynyard Quarter, and the Viaduct.
- Article supplied by Colliers
