Takapuna went into Auckland's first lockdown with an office vacancy rate that was lower than in the city's CBD, and occupancy was still high before the new lockdown came into effect.
In March, Colliers International reported that Takapuna’s office vacancy rate had fallen to 4.5 percent - down from 5.1 percent in September 2019. In contrast, Auckland CBD’s overall office vacancy rate increased from 4.7 percent in December 2019 to 6.3 percent in June.
While pleased with the high occupancy rates, the Takapuna Beach Business Association is encouraging local office employees to return to their workplaces once the new lockdown lifts and Auckland’s current Covid crisis is over.
Office-based businesses should think about the impact their workers’ absence has on our town centres, says the association's chief executive, Terence Harpur.
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A Colliers survey has revealed 37 percent of workers would like to work remotely for 1-2 days per week, and many now are.
Colliers national director of partnerships, research and communications Chris Dibble says Takapuna is not alone in maintaining strong occupancy rates, despite the economic uncertainty. The non-CBD metropolitan office market, he says, typically fairs better than the CBD office market in periods of downturns given the lower levels of new supply under construction.
What’s more, the fact that office leases and operating expenses also tend to be lower in centres like Takapuna enables more businesses under financial pressure to stay put, while attracting additional SMEs, in particular, out of the central city.
“A lot of people who have been working in the CBD for years, but are then forced to work from home, are now contemplating the likes of a smaller office space with lower overheads, which might also be closer or easier to access for many employees,” says Mr Harpur.
“As was seen in Christchurch after the earthquakes, but significantly less dramatically, we’re anticipating a bit of a CBD exodus and places like Takapuna will benefit."
Work on the Hurstmere Road’s $12 million upgrade has started with Takapuna’s revamped main street expected to be finished by mid-next year, while Panuku’s well-debated $7 million town square has just been out for consultation on the proposed design. Panuku is also about to finish the multi-level Gasometer carpark building on Huron Street for 420 cars - expected to be open later this spring.
While from next year the town square will take up some of the existing Anzac Street carpark, many carparks will be retained in that precinct which backs onto Monterey Cinema and Shore City Shopping Centre, as well as retaining the popular Takapuna Beach Sunday Market.
The Panuku-led "Unlock Takapuna" project includes upgrades to Huron and Northcroft Streets, and later, a new bus interchange on Lake Road. Opportunities for commercial and residential development will also be made available around the town square.
Mr Harpur says while central Auckland is experiencing office vacancy increases and the loss of many Airbnb guests and international students in its residential stock, the prospect of living, working, or investing in a beachside community like Takapuna is increasingly attractive.
“Takapuna is in a very fortunate position. We’re going into this period of global uncertainty investing more than $50 million-plus to modernise our town centre. When the city, country and world rise again, Takapuna will be in great shape to take off. In the meantime, we really value the support of local shoppers, businesses, and every employee."
