The recent completion of the Britomart East building for Westpac and Ernst & Young have left multiple floors vacant at Axa Plaza and PricewaterhouseCoopers Centre, increasing the vacancy rate of prime grade buildings in Auckland to 10.9%. This rate may pick up further when ASB Bank moves to a new $130m office tower in 2013 (see J114456). Vacancies have also increased across B-grade buildings, but according to Alan McMahon of Colliers research, conversions of office buildings to residential use is an effective way of keeping a lid on rising vacancy levels. Auckland Council has identified the long term need to accommodate another 600,000 people over the next 30 years, a large chunk of which will be in central city apartments, says Mr McMahon.

National Business Review: NZ Property Investor, July 12 2011 (BL)


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