Merry Christmas from us! Our commercial property experts; (front row) Stephen Brent, Janine Ballinger, Emma Turner, Ann Maria Buckley, Emily Nind and Lauren Jerard. (back row) Mike Parker, David Fitchett, Elliot Scott, Jeroen Vink and Tim Stevens. A Brief Market Update – Christchurch Commercial Property The Christchurch commercial property market experienced disruption following the Canterbury Earthquakes. Prior to the earthquakes, increasing vacancy rates and shorter lease terms evidenced what was effectively a ‘tenant’s market’. Tenancy inducements were on offer to attract quality tenants whilst rental growth and investment demand remained relatively flat. Post-earthquakes we have seen significant changes in the market. Limited supply resulted in fewer vacancies, longer lease terms, and limited inducement offers by landlords. As the rebuild progresses the central city is starting to take shape with many private sector developments either completed or nearing completion. The BNZ Centre and The Crossing opened earlier this year and The Terrace is due to open before the year ends. In the government sector, the Justice and Emergency Services Precinct opened with a public viewing in September 2017 and other anchor projects including the East Frame and Convention Centre are under construction. Office supply is nearing pre-earthquake volumes and the construction of new offices in the CBD has dropped off sharply. Office vacancy rates in the suburbs are expected to increase as more businesses make the move back into the CBD. New industrial developments throughout Canterbury (including developments in Belfast, Rolleston, and Hornby) have created enough industrial land to keep the Canterbury market supplied for years to come.
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