Christchurch offices depleted but plans afoot

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

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.


Got a question about this story? Leave it in Comments & Questions below.

This article is tagged with the following keywords. Find out more about MyNBR Tags

NZ Market Snapshot

Forex

Sym Price Change
USD 0.6438 -0.0015 -0.23%
AUD 0.9020 -0.0001 -0.01%
EUR 0.5760 -0.0011 -0.19%
GBP 0.4177 -0.0018 -0.43%
HKD 4.9899 -0.0188 -0.38%
JPY 78.1830 -0.4270 -0.54%

Commods

Commodity Price Change Time
Gold Index 1133.3 8.610 2015-08-28T00:
Oil Brent 50.0 7.240 2015-08-28T00:
Oil Nymex 45.2 2.730 2015-08-28T00:
Silver Index 14.5 0.120 2015-08-28T00:

Indices

Symbol Open High Last %
NZX 50 5634.9 5688.3 5634.9 0.63%
NASDAQ 4792.1 4836.8 4812.7 0.32%
DAX 10335.9 10336.9 10315.6 -0.17%
DJI 16649.4 16670.0 16654.8 -0.07%
FTSE 6192.0 6247.9 6192.0 0.90%
HKSE 22424.4 22424.4 21838.5 -1.04%
NI225 18908.7 19192.8 18574.4 3.03%