Wellington, Auckland among highest office rents in world

Auckland and Wellington are among the most expensive cities in the world to rent offices.
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Auckland and Wellington are among the most expensive cities in the world to rent offices.

Wellington has become the 84th most expensive place in the world to rent prime office space.

The price of renting a little nook in the capital city has increased 3.2 per cent in the past 12 months to $355 per square metre per year.

However, Wellington wasn't the only one to make the cut -  Auckland has ranked 60th most expensive place to rent an office, up 5.2 per cent to $407 per square metre per year.

The increases came after space availability declined as the economy started expanding.

Both cities have continued on an upward trend since 2011, when CBD office rents in Wellington and Auckland decreased.

And while it's bad news for people looking to rent, it's great news for investors.

According to the latest Colliers International global office survey, which tracks office rents in 151 cities across the globe, investors reaped the benefits, with those in Wellington receiving an 8 per cent increase in their return on investment, while those in Auckland received a 7.3 per cent increase.

These figures alone were enough to attract more overseas investors to snap up CBD office spaces, the survey said.

In 2013, just 10 per cent of Auckland and Wellington prime CBD office space were fully or partially-owned by offshore investors - this year it is 28 per cent.

"Although comparing the investment benefits of CBD office ownership in London with Auckland may be challenging, investors looking at relative returns are aware of the opportunity on offer in New Zealand."

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The falling NZD would likely "stimulate further conversations" with off-shore buyers sparking further investment in New Zealand, it said.

The survey found the while New Zealand's pace of rental growth rank was strong, it was still cheaper when compared to other major cities around the world.

Hong Kong is the most expensive place to rent office space, followed by West End London, London City, Tokyo and Paris.

Just 27 per cent of all cities in the survey experienced declines in rent over the past year.

 - Stuff

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