Commercial Figures Otago

Demand has started to ease throughout the Dunedin office market. Dunedin is classified as a low seismic risk area and although there has always been a preference for strengthened buildings, there has not been the same level of urgency for tenants to relocate from buildings that have NBS ratings <67%. This trend is now changing, the Dunedin market is made up of a large portion of Government organisations, who are now showing a clear preference for strengthened, modern buildings with larger floor plates and in many case are relocating from older buildings.

The Dunedin industrial market continues to perform strongly. The geography of Dunedin contributes to a constrained industrial land supply. In the past, this has been of a sufficient size to provide for the local industrial market. This has changed over the past three years, with increased demand coupled with low interest rates resulting in rising land values and developments popping up in historically fringe areas.