CBD office demand is subdued with increasing supply driven in part by the current challenges facing local business as well as increased competition through the development of modern office space within Five Mile and Queenstown Central commercial precinct. The ongoing development of modern office space is likely to continue the current trend for the foreseeable future. View infographic here
Industrial rents have recovered any softening experienced in the early stages of the Pandemic. Recent leasing is at or above pre-pandemic levels though stock remains low. Strong rents and stability of industrial tenants has positioned industrial property favorably with investors with a number of sales in the latter half of 2021 setting record low yields for industrial property in the Frankton area. Increasing debt costs are expected to put upwards pressure on yields to a certain degree.
View infographic here
Queenstown CBD vacancy is increasing with the majority of vacant retail space located there. Prime retail rents are static though ongoing vacancy may create some downward pressure. The year ahead will be critical with the re-opening of the borders expected to result in an increase in business confidence and demand. View infographic here