Auckland Figures Q4 2024

Key Points:

• The improving occupier confidence that leasing brokers reported in Q3 is starting to flow through to increased activity with agents generally experiencing a busy start to the year.
• Expected higher leasing volumes this year will bring welcome relief to generally increasing vacancies during H2 2024.
• The lift in confidence has helped stem the trend of increasing incentives that drove the decline in net effective rents in Q3.   Our Q4 assessments indicate that incentives have remained largely stable. Combined with some face rent increases, this resulted in slight net effective rent growth for Prime grades in industrial, CBD office, and shopping centres.
• Lower interest rates have refocused buyers to a more transactional mindset.  While this shift was already evident in Q3 via improving sentiment, in Q4 it has further manifested itself in increased levels of bidding and transaction activity. These indicate firmer pricing at the smaller asset size/value end of the market, especially for good quality industrial buildings.  Liquidity and pricing remain more challenging for larger assets in the realm of institutional investors.