A record low of below 4.7 per cent has been set for vacancy levels in Auckland’s Southern Corridor centred on Greenlane, Ellerslie and Penrose, reflecting an explosive demand for office space in the area.
Sunday, March 20th 2005, 5:28AM
by The Landlord
This is the lowest vacancy level for any office precinct in Auckland including the CBD, the city fringe and the North Shore, says a survey by Bayleys Research.
The record vacancy level is down from nearly 7 per cent last year and well below 18 per cent in January 2003.
"There is virtually no existing grade-A office space available for lease" in the Southern Corridor, says Bayleys’ Cameron Melhuish. "Grade-A office vacancy is sitting at 2.4 per cent and, with the exception of the January 2003 survey, has fallen every year since 2000."
Melhuish says the demand for Southern Corridor office space also needs to be put into the perspective of major office construction in the area.
"The record vacancy rate is even more impressive because it has been achieved in the face of new developments which have yet to show any signs of slowing.
"New office construction in the Southern Corridor has totalled over 30,000sq m since January 2000, including the Meridian Centre, which was completed largely vacant in January 2003. But all this space has been quickly taken up."
