Wellington Office Market Report
New Year Outlook.
With Wellington now back in RED , office tenants are staying away from the CBD in their droves. Employers are understandingly encouraging their staff to stay home if they can, rather than risking the whole office getting Omicrom and crippling the business in one foul swoop. Retailers including hospo, are taking a battering and the number of empty shops in key locations is growing.
The office market to date this year has remained steady and the latest reported CBD vacancy rate is between 8% and 9%, so is still relatively low.
Office leasing so far in January has started off at a brisk pace as tenants re- assess their requirements as their office lease comes up for renewal.
Office rents for quality refurbished CBD office suites are on the increase and now in the $500 – $750m2 (gross) range – a level only dreamed about in past years.
The Omicrom outbreak is yet to flourish, but based on overseas experience cannot be far away – It remains a major risk to business in general in 2022 as well as a predicted inflation rate of 5-6%.
Take care everyone and stay safe!
Rental Update – Current average gross rentals per annum (ex gst) are CBD core: $350 – $750m2. TE ARO: $240 – $370m2 THORNDON: $240 – $350m2.
Report written by Tom Burke. Owner. January 27th 2022. (all rental figures in this report refer to gross rentals ex gst)