Market Information and Analysis

TrueCommerical brings you the latest Market Information and Analysis from the commercial property market.

  • Commercial property leaders upbeat about 2016

    Commercial property leaders upbeat about 2016

    Without exception the leaders of major commercial property agencies and business brokerages are upbeat about the year ahead.

    Date Jan 2016

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  • Sale of corporate properties benefits companies and investors

    Sale of corporate properties benefits companies and investors

    Since the global financial crisis, senior leadership teams across all businesses have been analysing their balance sheets to reduce unnecessary wastage and leverage under-utilised capital. Now with balance sheets in better shape due to economic expansion and increasing revenue, opportunities for growth are back on the agenda. One of the biggest opportunities for businesses to unlock and utilise capital more efficiently is through the sale of their office headquarters or distribution centres with a long lease in place – or via the disposal of property and land holdings that have become surplus to requirements.

    Date Oct 2015

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  • Hamilton’s CBD hurts as north booms

    Hamilton’s CBD hurts as north booms

    Retail services in Hamilton’s CBD are suffering due to the phenomenal residential growth on the city’s northern urban boundaries along with accompanying commercial growth there, according to new research. “Both primary and secondary shopping strips within Hamilton’s central business district are coming under significant pressure, with high levels of vacancies and softer pedestrian traffic,” says Ian Little, national manager of Bayleys Research.

    Date Jul 2015

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  • Office rent rises and less space for workers

    Office rent rises and less space for workers

    JLL researchers are forecasting a further 9 per cent increase in average net office rents for Grade A space in Auckland CBD by this end of this year with reduced vacancy also driving workplace changes throughout New Zealand. Mark Grant, the agency’s national director of markets, says research recently undertaken by JLL on the office supply pipeline found that there is very little space likely to be completed until 2018.

    Date May 2015

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  • Shortage of office space sparks development

    Shortage of office space sparks development

    The amount of vacant office space in the Auckland CBD has been shrinking for the past three years as the economy grows, business confidence reaches record highs and supply stays still. The limited amount of available office space in Auckland's CBD reached all-time lows at the beginning of the year. There was around 4000sq m of prime vacant space and 100,000sq m of secondary space.

    Date Apr 2015

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  • New Zealand ‘red hot’ for overseas equity investors

    New Zealand ‘red hot’ for overseas equity investors

    Interest among overseas investors in New Zealand property is “red hot”, says Andrew Reed, international director of capital markets at Colliers International. Commenting on the agency’s Capital Markets Report, based on a survey of the world’s top commercial and industrial markets, Reed also predicts more Chinese investment in New Zealand commercial property.

    Date Apr 2015

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  • Report indicates continuing positive industrial market

    Report indicates continuing positive industrial market

    Positive signs ahead point to another golden run for the industrial sector, with little signs of a slowdown. Demand is the best it has been in decades and this is an attractive feature for an investment market hungry for good quality investment opportunities. The positive attention the industrial sector is receiving stacks up against a backdrop of strong economic activity. The only foreseeable headwind for further expansion will be access to the type of vacant industrial land that allows development of the premises desired by tenants. In some areas of New Zealand, particularly in pockets of Auckland where the highest proportion of industrial activity is recorded, this resource is becoming scarce.

    Date Mar 2015

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  • JLL Research’s city and suburban office report

    JLL Research’s city and suburban office report

    The following is the content of JLL’s Pulse research report for the Auckland CBD and suburban office market for the first quarter of 2015. Strong occupier demand has resulted in vacancy experiencing a sharp fall and has put upward pressure on rentals. Investor confidence remains strong and has resulted in further compressing in yields.

    Date Mar 2015

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  • Infrastructure projects help fuel capital’s boom

    Infrastructure projects help fuel capital’s boom

    The value of building and construction activity in Wellington is expected to grow by 38 per cent from 2012 to 2019, according to a National Construction Pipeline report compiled by the Building Research Association (BRANZ) and Pacifecon (NZ) Ltd. Of particular encouragement to the commercial property sector is the report’s forecast that non-residential Wellington construction activity is expected to surge ahead by 49 per cent in the 2012 – 2019 period, says Mark Hourigan, Wellington commercial and industrial director for Bayleys.

    Date Feb 2015

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  • Industrial market faces positive perfect storm

    Industrial market faces positive perfect storm

    New Zealand’s industrial property market is experiencing a “perfect storm” that will boost competition in 2015 and especially for the prime industrial sector, says Chris Dibble, national research manager at Colliers International in his latest New Zealand Research Report. Dibble says trends coming together that make the market friendly “storm” comprise a robust economy, low interest rates, lower fuel prices and a development pipeline that is yet to stem demand.

    Date Jan 2015

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  • Big drop in city fringe office vacancies

    Big drop in city fringe office vacancies

    The combination of a strengthening leasing market and some significant projects converting office buildings into residential complexes have resulted in a sharp fall in office vacancies across the Auckland City fringe business precincts, says Bayleys Research. A new city fringe vacancy survey shows that overall office vacancy has fallen to 13.7 per cent down from 16.8 per cent in early 2014 and a peak of 16.9 per cent recorded in 2011 when the impact of the Global Financial Crisis and New Zealand’s recession was at its greatest.

    Date Jan 2015

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  • Strong demand for office space in CBD

    Strong demand for office space in CBD

    The amount of empty office accommodation within Auckland's CBD has fallen for the fifth consecutive year, reflecting the city's strong economic performance. The latest Bayleys Research CBD office survey has found the overall vacancy reduced to 10.6 per cent - down from 11.4 per cent in January last year.

    Date Jan 2015

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  • High returns on commercial property

    High returns on commercial property

    The return on New Zealand commercial property is now at its highest level since the March 2008 quarter, reports the Property Council of New Zealand (PCNZ). The council’s report says commercial property continues to perform strongly as evidenced by the PCNZ/Investment Property Databank (IPD) New Zealand Property Index results for the quarter ending September 2014.

    Date Nov 2014

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  • Record year for commercial property sales

    Record year for commercial property sales

    The volume of commercial property sales in New Zealand has reached its highest level on record for this time of year driven by greater levels of foreign investment according to commercial real estate agency JLL. “In the year to date, investors have acquired more than $2.8 billion worth of New Zealand’s industrial, retail, and office properties compared with $2.1 billion in the previous year,’ says Nick Hargreaves, managing director for JLL.

    Date Oct 2014

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  • Industrial property favoured as ‘low risk asset’

    Industrial property favoured as ‘low risk asset’

    Industrial property has been identified as the steadiest performer in the commercial real estate market in a report compiled by Bayleys Research. “Industrial property is a sector that is characterised by generally low volatility in key indicators such as vacancy levels, rentals, yields and returns. As such, it has strong appeal for the lower risk, passive investor,” the report says.

    Date Oct 2014

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  • Auckland retail market positive overall

    Auckland retail market positive overall

    JLL Research says improving retail fundamentals along with rising confidence for both retailers and consumers are starting to translate into overall positive movements within the Auckland retail market although rents and vacancy are yet to fully reflect this trend. The agency’s latest Pulse market report says investment yields for retail assets in Auckland continued to move downward during the first six months of 2014 as investor demand remained strong.

    Date Sep 2014

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  • Growing demand in Auckland’s Southern Corridor

    Growing demand in Auckland’s Southern Corridor

    Improving office occupier demand in Auckland’s Southern Corridor running from Newmarket to Ellerslie has driven vacancy levels lower and investors continue to show interest with yields moving lower, says JLL Research. The agency’s latest Pulse report on the Southern Corridor office market says strong interest for new build space in the area has driven further development.

    Date Sep 2014

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  • Auckland CBD office market moves in favour of landlords

    Auckland CBD office market moves in favour of landlords

    Auckland’s office market continues to shine as confidence remains high, says JLL’s latest Pulse market research report on the city’s CBD core and “frame” (surrounding) city areas. The report says robust economic fundamentals and strong trading conditions are filtering into the commercial property market with strong economic data and strengthening business confidence driving office leasing activity.

    Date Sep 2014

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  • Low CBD vacancy pushing occupiers further out

    Low CBD vacancy pushing occupiers further out

    Increased levels of activity and demand for quality in city fringe and suburban locations is putting upward pressure on both rents and yields, says JLL’s latest Pulse research report. “Occupiers have started to look further out of the Auckland CBD for accommodation as vacant space becomes insufficient for larger occupiers and rents rise,” the report says. “Several corporates have expressed interest for new office blocks within the city fringe precinct and stronger demand is expected in the future as office space becomes even more limited in the CBD market.”

    Date Sep 2014

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  • Wellington tenants hesitant about the future

    Wellington tenants hesitant about the future

    Occupier demand in the Wellington office market has resulted in vacancy levels falling but uncertainty surrounding seismic issues and government changes continue to hamper the market, says JLL Research in its latest Pulse report. “Despite this, there is investor interest in anticipation of market improvements,” the report says.

    Date Sep 2014

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