New Zealand’s office occupancy costs are among the lowest in the world, recent international survey has revealed.
Annual occupancy costs for the plushest offices in the world’s most expensive office location of Hong Kong are mind boggling $4235 per square metre. This is nearly seven times the annual $630 per square metre cost of rent plus operating expenses for New Zealand’s most expensive office space, which comes with stunning harbour views, in Auckland’s CBD. This ranked New Zealand 46th out of 57 countries measured in the Cushman & Wakefield Research’s Office Space Across the World 2009 survey.
London has lost its status as the world’s most expensive office location for the first time in nine years. Rents for posh West End space plummeted 23 percent in 2008 as the full impact of the credit and banking crisis scythed through the financial services sector. Hong Kong and Tokyo are now the world’s most expensive locations, although rents in Hong Kong also fell in 2008, but by more subdued four percent.
Cushman & Wakefield, Bayleys Real Estate’s international affiliate, says office rents globally rose on average by three percent in 2008, significantly below the 14 percent achieved in 2007 and the lowest growth rate since 2004. Malaysia’s Kuala Lumpur recorded the highest level of rental growth, up more than 50 percent in 2008. China was also strong performer, delivering rental growth of 12 percent.
Cushman & Wakefield says it is evident that occupational demand is slowing in most regions, with tenants more cautious, decisions delayed and deals taking longer to negotiate. “Office vacancy is now most likely to peak in 2010 rather than 2009. On the plus side, many markets remain undersupplied with modern, efficient office accommodation and large number of proposed developments having been delayed over the past 12 months, which should prevent oversupply in many markets.”
See also “Tide turns in tenants’ favour” – New Zealand commercial property review on p48
