Office Space in Short Supply?????

This post was written by Tom Burke on January 30, 2016

City photo

 

The Dominion Post in an article today (Jan 30th 2016) discussing retail & office vacancies in Auckland and Wellington has the above headline (without the question marks). The article states that “whilst the Auckland office vacancy rate is down to 5.8%, Wellington’s is still at 11.7%” – hardly a short supply for Wellington. The article further states that “overall vacancy rates in Wellington CBD could be up to 14% by late 2017 or early 2018.” Once again no sign of a short supply of office space in Wellington. The article also states “More than 90 per cent of current office space is low quality, which may limit absorption rates until 2017 as tenants look for high quality space.” The latter statement reflects current reality as many currently vacant tenancies have been available for at least 2 to 3 years and will continue to be vacant until such time as The Landlord refurbishes or remodels the tenancy to attract a suitable tenant. Perhaps the headline in Wellington’s case should read “Office vacancies set to increase”

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