Commercial Figures Manawatu

There is a wide divergence of office rental and value expectations in Palmerston North. There is evidence of corporate and institutional tenants seeking new compliant office space, preferably with larger floor plates. Rentals established for modern purpose-built accommodation are largely development cost driven and are at levels exceeding that for older and/or less versatile space.

The Palmerston North market has seen upward movement for industrial premises market rents and values in recent years. We note continued strong demand within this sector which we believe relates to several factors, including a shortage of modern good-quality premises available for occupancy, significant growth of underlying land value, plus current and forecasted industrial development/projects.