Office Sector Market Update
August 15, 2019
Office rents in the Auckland CBD office market have been steadily increasing with prime rents a by-product of high replacement costs and limited new supply. Various market sources report rental growth rates of 2% to 5% per annum with an expectation of continued growth rates between 3% to 4% per annum for the next few years until new supply comes to market. Yields in the Auckland CBD office sector have been contracting over the previous years at a consistent rate, particularly in the $3-10 million bracket as a large amount of market competition exists.