Our latest commentary

Highly coveted childcare assets have encountered challenges in more recent times as a result of an over-supply in childcare licences, investigations into childcare operators, and government interventions.

The industrial sector faces challenges with high construction costs, leading to a shortage of available properties and persistently low vacancy rates.

The retail market has experienced challenging and uncertain conditions with the impact of COVID-19. Albeit shifting market sentiment, greater clarity on the extent of the COVID-19 impacts on the economy will likely only be seen in the coming months.

Whilst traditional commercial property assets face headwinds from the current economic circumstances the healthcare sector would appear less volatile as tenants’ businesses continue to operate, providing essential services, which reduces the potential for vacancy risk with expected ongoing financial support from the government.

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.