COMMERCIAL PROPERTY with Andrew Hiskens
Andrew Hiskens, Colliers International’s North Shore Director, reviews the qualities of commercial property in recessionary times, and how it has led the way as an asset class over the medium term:
GOOD SIGNS AS DEMAND STARTS TO GROW
At a time when the entire nation has rightly focused on the terrible times being endured by so many people in Christchurch, it is easy to ignore activity closer to home.
And, although the commercial property world has been hit as hard as anything in Christchurch, particularly in the CBD, life on the North Shore has carried on and, in many cases, showing signs of increased demand says Andrew Hiskens, Managing Director of Colliers International’s North Shore agency.
There are a number of indicators starting to point in the right direction on the Shore and that local property owners and tenants should take notice.
“Office vacancy levels have actually started to reduce in Takapuna after several successive months of growth. After the high of 12.35% recorded in Takapuna in March, vacancy has dropped by over one per cent, and current enquiry levels point to a further reduction ahead.”
There is also a broader awareness about workers environments “If you work in Auckland in an office which was leased in the last two years, our 2010 Workplace Report may be surprising news, as it shows that Auckland workers have the third most amount of office work space across the five biggest office centres in the country.”
With vacancy trending downwards and confidence rising across the commercial property market, opportunities exist for companies to improve their returns from their spacious offices. “It’s not all bad out there right now. So, if you feel you are rattling around in your office, I’d say that now is the time to utilise your space more effectively and sublet extra space to extract value.”
In addition, the industrial vacancy on the North Shore also dropped from 7.26% in February to 6.76% in August. “Both Mairangi Bay and Wairau Valley have dropped, and North Harbour has only increased slightly with a couple of large warehouse complexes coming on the market.”
From a retail perspective, Hiskens adds that Colliers’ most recent retail report at the end of July says that demand for prime well located shops throughout the country is rising, with rents generally holding firm and well-capitalised national and international chains taking an opportunity to secure new branches in previously unaffordable locations.
“Auckland retail investor confidence is the highest it has been for three years,” he says. “This is reflected in rising retail property returns. In the year to March 2010 total annual return for Auckland retail property was 5.3%; the first positive result after four quarters of annualised negative returns.”
Dedicated dentists
