By Sarah Hirst
This could be a very short article if I were to list and describe the A Grade office space currently available in Whangarei. A-Grade office space means buildings that have excellent location and access that attract high quality tenants, and are usually managed professionally. Building materials are high quality and rents are competitive with other new buildings. There’s some of course and those Landlords providing these spaces are securing quality tenants on good lease terms.
The majority however is not A Grade and more likely B & C Grade space with Landlords not happy to invest in upgrading the buildings without first securing the tenant, a little chicken and egg! Of course the cost involved with upgrades has risen significantly due to the Christchurch earthquake and seismic issues that many Landlords now face and would now have to complete.
A Grade office space is mainly taken up by Government, Health and Corporate tenants whom require the building to meet the minimum national standard of 67% of the NBS (National Building Standard).
Along with these costs of upgrades to existing office buildings there is the spread of the offices moving out of the CBD due to lack of parking for both tenants and their clients. The vacancy rate in Whangarei is close to 20%! What we have seen is that the smaller office spaces are in demand and the large floor areas are exceptionally difficult to fill due to lack of demand. With technology evolving on a daily basis there is less need to be in an office environment for many businesses and if you are in need of office space, quality and cost are always top priorities.
Sara Hirst is a Licenced Salesperson REAA 2008 and Commercial Sales Consultant at First National Real Estate Whangarei.