Christchurch’s central city office stock has reduced by more than half since the 2011 earthquakes.
Colliers valuer Gary Sellars gave his state of the nation speech at a recent Property Council forum and noted a handful of recent sales.
HSBC House at 62 Worcester Boulevard was sold in May by Latitude Group to a company owned by Richard Sissons and Jacqui Lowe for $26 million on a yield of 10.99%.
Press House in Cathedral Square was sold by Ganellen Group in June to Cristo, a company owned by Richard and Stephen Bell, for just over $19 million on a yield of 8.74%.
The 2010 central city office stock of 446,002sq m, has fallen to 188,978sq m, of which just 56,525sq m is tenanted.
There is still uncertainty about the fate of the Forsyth Barr and IRD buildings.
A handful of buildings account for those that are tenanted, including the Civic building and HSBC House in Worcester Boulevard, Press House and some low-rise buildings in Victoria St, the northern gateway to the central city business district.
Most new office buildings (12,237sq m) have gone up in the suburbs of Burnside, Addington and Riccarton while another 41,234sq m has been confirmed and 7600sq m proposed for these areas.
In the central business district there has been 5683sq m built since 2011, 34676sq m confirmed and 159,850sq m proposed.
Asking rents of proposed buildings are $400/m2 to $450/m2 (Auckland prime rents are $530/m2 and Wellington $425/m2).
This compares with the demolished PricewaterhouseCoopers Centre in Madras St, where rents were $270/m2 and the recently-completed HSBC House at $350/m2.
This article is tagged with the following keywords. Find out more about MyNBR Tags
- MARKET CLOSE: NZ shares fall; Chorus, A2, Genesis drop, Auckland Airport gains
- Lion countersues over A2 milk marketing
- Analysts revise down Air NZ share price and earnings targets
- Judge failed to go into case with open mind – Megaupload lawyer
- Veritas slumps into loss on Mad Butcher write-offs and Nosh disappointment
Most listened to
- Chorus CEO Mark Ratcliffe on why he's leaving and the regulatory regime
- “The issues are so enormous that it all seems completely overwhelming,” says Rod Oram. “But there is movement.”
- Xero's CFO Sankar Narayan on competitors MYOB and Intuit's results
- Craigs' Mark Lister on the Federal Reserve giving the Reserve Bank a breather
- Parliamentary silly buggers is starting to dominate the activity and effort of John Key’s government, says Rob Hosking