Love Your Workspace Magazine | Wellington

Page 1

Complimentary Copy

OFFICE & RETAIL SPACE FOR LEASE . 2019

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W E LLI NGTON A Transformed Waterfront Property

Stronger Buildings, Stronger City

Placemaking; It’s A Thing & It’s Here

Creative Workspace Utilisation

Winning At Waterloo, A Refurbishment Project

Evolving Property Strategy & Agility



CONTENTS

Feature articles

06

A Transformed Waterfront Property Offering the Market a Modern, Resilient and Efficient Workspace

16

The Creative Equation Exploring the Science Behind Creative Workspace Utilisation

24

Leading Insight: Stronger Buildings, Stronger City Changes Happening Across Wellington and the Four Main Factors that Underpin Them

34

Winning at Waterloo 7 Waterloo Quay is Coming Back!

42

Placemaking Where Retailing Meets Emotional and Social Well-being

44

Evolving Property Strategy & Agility Alignment Between an Organisation’s Growth Strategy and Their Property Requirements

Left: Catalyst - The Creative Equation


WELCOME from Matt Hince Senior Director, CBRE Wellington Advisory & Transaction Services - Office Leasing

Welcome to CBRE Wellington’s Love Your Workspace magazine 2019. We invite you to contact one of our dedicated leasing agents to discuss how this evolving market can address your property needs and answer any questions you may have in relation to the properties highlighted within this edition of Love Your Workspace.

F

rom a long term perspective

dictates that this form of supply

Already 2019 has seen some major lease

Wellington’s office market

increase is still several years off. Several

transactions announced such as 1 The

has undergone somewhat of

existing buildings (such as 10 Brandon

Terrace (7,906sqm), the re-developed

a sea-change over the last

Street and 7 Waterloo Quay, both

Farmers Building in Cuba Street

several years. The challenges created by

featured in this publication) are at an

(5,600sqm) and Statistics New Zealand’s

the removal of stock due to seismic issues,

advanced stage of regeneration adding

commitment to 11,000sqm in 8 Willis

costs associated with the development

a much needed release valve to a tenant

Street.

and ownership of commercial assets and

market crying out for new space prior

the expansion in the public sector have all

to new development kicking in.

contributed to historically low vacancies in a time of significant tenant demand.

Several other very significant deals are at advanced stages and will be

As organisations evolve, we are

announced over the next several

seeing the desire for increased built-

months. CBRE is proud to be involved

Combining the above with tenants’

in flexibility with long-term lease

in many of these transactions and

increased focus on resilience and

arrangements. This mindset is being

we are delighted to showcase a broad

workspace flexibility, has led to a greatly

seen globally and has led to the

spectrum of office and retail leasing

altered perspective on how buildings

rapid rise of companies providing

opportunities in this publication.

and the physical workspace can support

flexible workplace facilities such as

modern working styles.

curated shared space and co-working

We look forward to helping your

environments. Often these offerings

organisation understand this market

We continue to see rents rise and with

can form all or part of the end user’s

and assist in developing your plans to

this an increased willingness from

occupational strategies.

find the ideal office solution.

owners to either develop new office facilities or alternatively re-develop

The Crown continues to be active in

existing older buildings to cater for

seeking space with ongoing expansion

these “new normal” market dynamics.

in the Government sector resulting in many departments needing to house

In terms of new development, the

staff from fragmented locations.

pipeline of genuine opportunities

4

Matt Hince Senior Director 021 333 005 matt.hince@cbre.co.nz


CBRE Advisory & Transaction Services - Office & Retail Work with Wellington’s best leasing agents. Contact any of us to find out how CBRE can transform your real estate into real advantage. Matt Hince - Office 021 333 005 | matt.hince@cbre.co.nz Matt is a Senior Director in the New Zealand office leasing team and has over 20 years of professional experience in the commercial real estate industry specialising in office leasing agency and advice. During his career he has arranged many of the larger and more complex leasing transactions within the Wellington CBD. In this time Matt has focused on advice regarding the securing and disposal of office space working on behalf of noteworthy office occupiers, developers and owners.

David Fisher - Office 021 840 755 | david.fisher@cbre.co.nz David is a Director of the Wellington office, specialising in the CBD office leasing sector, representing both landlords and tenants. After completing a Bachelor of Commerce (Valuation and Property Management) at Lincoln University and three years in a Government Agency, he joined CBRE’s agency team. With over 30 years of commercial experience, David is a firmly established commercial office leasing specialist who has undertaken a large cross section of transactions in the Wellington market.

Paul Soulis - Office 021 622 690 | paul.soulis@cbre.co.nz Paul joined CBRE in 2011 and has quickly become one of the most respected and prolific office leasing agents in Wellington. His reputation for quality advice and diligence has led to Paul concluding the greatest number of transactions in a calendar year for CBRE on several occasions and has earned him multiple company awards. Paul has concluded over 170 leases with his most recent notable transactions being Co-Operative Bank, Dimension Data, Stantec NZ and Wellington City Council Head Office of 9,300sqm.

Manoj Ediriweera - Office 021 471 066 | manoj.ediriweera@cbre.co.nz Manoj joined CBRE in 2015, originally on the ANZ account and over the past two years in the office leasing team. With his experience as a tenant representative and with two years looking after ANZ corporate offices nationally, Manoj has a unique set of skills that helps both landlords and tenants complete complex leasing transactions. In Manoj’s first full year of leasing he completed 10 deals over a total of 4,200sqm that helped him secure the National Rookie of the Year award at CBRE.

Belinda Forbes - Retail 021 320 880 | belinda.forbes@cbre.co.nz Belinda has joined CBRE, driving the speciality business of retail leasing and sales. With over 20 years of local and international media, marketing and sales experience based in the fashion and retailing sectors - Belinda has most recently had success delivering property sales campaigns in residential real estate in Wellington. Belinda is focused and passionate about providing leading edge, innovative and bespoke solutions to property owners and retailers.

5


A TRANSFORMED WATERFRONT PROPERTY 10 Brandon Street, one of Wellington’s premier office addresses, is being transformed by Primeproperty Group to offer the market a modern, resilient and efficient workspace catering for the evolving workplace environment. 6


Strong and robust in the centre of Wellington Structural integrity, resilience and life safety are of the highest importance to Primeproperty Group. As a result, 10 Brandon Street is undergoing a major strengthening project that will achieve 130% NBS and an A+ seismic rating, providing a seismic resilience level very few other buildings possess. Andrew Monahan of Primeproperty Group, says that a 12-month period of collaborative design and invasive testing by leading specialists has led to a high-quality outcome. “It is the result of collaboration between lead engineer Spectrum Consulting Engineers, ENGEO Geotechnical Engineers and peer reviewer University of Canterbury.”

Delivering a future-ready workspace Once the strengthening works are complete in March 2020, tenant fitout can commence. 12,000sqm of quality space will then become available from mid-2020, offering 16-levels of newly refurbished office accommodation with harbour views and 900sqm of premium ground floor retail. The extensively upgraded floor plates of c.780sqm will provide an efficient footprint for a high density of occupants utilising the potential fitout of a flexible and activity-based working environment. Furthermore, the ground level retail presents a premium space for food, boutique and traditional high-street offerings with the added incentive of flexible options around size, position and timing. David Fisher, Director of CBRE’s Advisory & Transaction Services business in Wellington, confirms a co-working tenant will occupy Level 14 and an international engineering company has leased Levels 15 and 16, the top two floors of the building. There is also strong tenant interest on other levels. “This early take up is a real statement supporting the quality of the work that is being undertaken by Primeproperty Group.” “Wellington’s waterfront office space has long been sought after, so we know that this property will continue to lease well.”

Abundance of amenities and well-being opportunities Fisher says that the building offers bike parking and charging stations, as well as a café integrated into the building’s main entrance. “Tenants can enjoy the complimentary use of the landlord’s private fitness centre, showers and change rooms located at 94 Featherston Street,” he says. “10 Brandon Street is going to offer a superb work environment right in the heart of Wellington’s city waterfront – a hugely desirable place to be.”

Concept Layout

7


David Fisher (Office)

Paul Soulis (Office)

 04 474 9820

 04 474 9824

 021 840 755

 021 622 690

WELLINGTON’S DESIRED OFFICE ADDRESS 10 Brandon Street, Wellington Central 10 Brandon Street is currently being transformed by Primeproperty Group into one of Wellington’s premier office addresses. The building is currently being strengthened to 130% NBS. This work will position the building with a seismic resilience level that very few other buildings possess. 10 Brandon Street will deliver 12,000sqm over 16-levels of newly refurbished office accommodation and 900sqm of premium ground floor retail including an intimate café integrated into the building’s main lobby entrance.

Areas Available Level 1 Levels 2-13

662sqm

July 2020

Circa 780sqm each

July 2020

Level 14

Leased

Level 15 & 16

Leased

Strengthened to 130% NBS

New curtain wall facade to lower levels

Fully refurbished modern work environment

Large efficient floors of 780sqm

Car parking

9,979sqm of office space remains

Showers, bike racks, e-bike charging

Complimentary access to landlord’s private gymnasium (located at 94 Featherston Street)

www.cbre.co.nz/1314599Q2 8


Belinda Forbes (Retail)  04 474 4208  021 320 880

Retail Offering Rare opportunity to pre-commit to central Featherston and Brandon Street premium retail. Commit early and enjoy some flexibility around size and footprint. Options for both food, boutique and traditional high street offerings. Strong passing foot counts, new shop fronts and large office occupiers within the building all lead to prime retail opportunities. •

Flexible options around size, location and timing

Strong and growing passing foot counts

Food, boutique and traditional high street opportunities

New glazed shop fronts

Areas Available Ground/Retail - Tenancy 1

95sqm

July 2020

Ground/Retail - Tenancy 2

132sqm

July 2020

Ground/Retail - Combined T1/T2

227sqm

July 2020

Ground/Retail - Café Site

85sqm

July 2020

Ground/Retail - Tenancy 4

120sqm

July 2020

www.cbre.co.nz/1327459Q3B

PREMIUM RETAIL

New glazed facade on Brandon Street

SITES WITH LOADS OF OPTIONS

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100% NBS RATING

RESOURCE CONSENT IN PLACE

CAR PARKS ON-SITE

MOVE WITH THE TIMES.

10

ON-SITE RETAIL/DINING AMENITY

END-OF-TRIP FACILITIES


BOWEN CAMPUS

40 AND 44 BOWEN STREET, WELLINGTON Precinct Properties has worked with Tennent Brown architects and Dunning Thornton engineers to design a new pair of buildings for Wellington which will give businesses a secure and flexible base from which they can readily respond to change. The proposed site forms part of Bowen Campus located adjacent to Parliament House and the Beehive, and situated between two existing buildings - the ‘Bowen State Building’ – now Defence House and the ‘Charles Fergusson Tower’ which are currently being redeveloped for occupancy by the Crown by October 2019. On completion there will be around 5,000 employees occupying Bowen Campus. A network of laneways between the buildings will offer sheltered, landscaped places for staff to sit or move through on their way to and from work. These laneways will incorporate retail, cafés and other amenities and enhance pedestrian routes for the public. The project is fully designed and has Resource Consent. Content: •

Targeting Q2 2022 completion

Design targeting 5 Star Green rating and 4 Star NABERSNZ rating

Over 22,000sqm NLA

Structure designed for greater resilience and improved business continuity - IL2 100% NBS

Modern side core design creating exceptional efficiency

www.cbre.co.nz/1799479Q3

Proudly owned and managed by

www.precinct.co.nz

Please contact:

Matt Hince David Fisher Paul Soulis Manoj Ediriweera

P 04 474 9811 P 04 474 9820 P 04 474 9824 P 04 474 9810 11

M 021 333 005 E matt.hince@cbre.co.nz M 021 840 755 E david.fisher@cbre.co.nz M 021 622 690 E paul.soulis@cbre.co.nz M 021 471 066 E manoj.ediriweera@cbre.co.nz


LARGE AMOUNT OF SPACE FOR LEASE

100% NBS rating

33 on-site car parks

SOL E AGENTS

A RARE OFFERING

8 GILMER TERRACE, WELLINGTON CENTRAL

AVAI L ABLE F OR LEASE LEVEL

AREA

LEVEL

AREA

Ground

630sqm (May 2021)

Levels 6-8

760sqm each (May 2021)

Level 1

760sqm (May 2021)

Levels 9-12

760sqm each (April 2021 1)

Level 2

760sqm (May 2021)

Level 13

208sqm (April 2021 1)

Levels 3-5

760sqm each (Dec 2023)

TOTAL

Potentially 9,952sqm

8 Gilmer Terrace is a compelling leasing opportunity in Wellington’s CBD. With leases expiring between 2021 and 2023, there is plenty of time to discuss options. There is contiguous space up to 9,952sqm with an average floor size of 760sqm with natural light to all sides. The floors in the building are going to be refurbished and plans are underway to modernise the building exterior (as indicated in the concepts displayed) and lobby, including a large café and meeting area.

David Fisher

Matt Hince

www.cbre.co.nz/1412619Q2

021 840 755 david.fisher@cbre.co.nz

021 333 005 matt.hince@cbre.co.nz

1

12

Subject to renewal not being exercised


WELLINGTON’S MOST ICONIC BUILDING

Café, car parks and on-site gym

High stud premium office space

Fabulous end-of-trip facilities

All round natural light

THE MAJESTIC CENTRE

AVAI L ABLE F OR LEASE

100 WILLIS STREET, WELLINGTON CENTRAL The recent four year long seismic upgrade and refurbishment of the Majestic Centre provides occupants with one of the most resilient and modern office environments in Wellington. The Majestic Centre boasts an on-site facilities team who are available 24/7. The building is a desirable option with the upcoming vacancy on Level 7 being the only available space in the building. Level 7 is available as a full floor or can be split.

www.cbre.co.nz/0111549Q3 13

LEVEL

AREA

AVAILABILITY

Level 7

969sqm

March 2020

David Fisher

Paul Soulis

021 840 755 david.fisher@cbre.co.nz

021 622 690 paul.soulis@cbre.co.nz


A LANDMARK OFFICE TOWER

On-site café

Central CBD location

Fabulous end-of-trip facilities

All round natural light

PLIMMER TOWERS

AVAI L ABLE F OR LEASE

2-6 GILMER TERRACE, WELLINGTON CENTRAL The Plimmer Towers complex is centrally positioned in Wellington’s CBD. It is situated on the corner of Gilmer Terrace and Boulcott Street, with access via Plimmer Steps to Lambton Quay. The broader complex incorporates an office tower, hotel and car park development with retail outlets. Full height windows afford wonderful harbour and city views from the mid and upper levels. Key features include: • • •

Fantastic building and end-of-trip facilities Large and small suites available Level 5 would suit a call centre, IT or industrial style user

There are plans underway to split a floor to provide small, brand new suites with kitchenettes. Also, efficient full floors are becoming available which will be fully refurbished.

www.cbre.co.nz/1327459Q3A 14

LEVEL

AREA

AVAILABILITY

Level 5

1,265sqm

Immediate

Level 13

559sqm

Immediate

Part Level 17

147.9sqm

Immediate

Part Level 17

127.5sqm

Immediate

Part Level 21

170.2sqm

Immediate

Part Level 26

275sqm (circa)

Late 2019

Level 28

570sqm

Late 2019

David Fisher

Paul Soulis

021 840 755 david.fisher@cbre.co.nz

021 622 690 paul.soulis@cbre.co.nz


NEW ZEALAND’S SPECIALIST PROJECT LAWYERS. NATIONAL REAL ESTATE SPECIALISTS. You do the deals. We do the documents. Efficiently and pragmatically. There is a marked difference in the way Greenwood Roche operates. From the outset we have focused on clearly defined specialist areas, retaining highly respected legal experts in each field. We then take that further; ensuring clients have direct and regular access to the most senior partners and lawyers, in a cost efficient manner.

www.greenwoodroche.com 15


THE CREATIVE EQUATION Exploring the science behind creative workspace utilisation

Drew Blair

Ruth Parnell

16


S

uccessful organisations

“It identifies usage patterns such as

“One area requiring particular

invariably acknowledge that

peak periods, which spaces are under

attention is the workplace change

attractive workspaces are

pressure, how and what technology is

management piece as people are often

essential to attract and retain

being utilised, and where productivity

reluctant to change. However, through

talent, build their brand around their

gains might be made. We interview

education around expectations and

working environment, be more efficient -

team members about their use of

benefits, once they see and use the

and ultimately improve their bottom line.

the workspace – their frustrations

space, they are generally excited and

and what they like – and importantly

pleased to embrace the change.”

Love Your Workspace interviewed expert

the perceived weaknesses they have

changemakers Catalyst on the work

encountered.

they are doing in the New Zealand market, and how the first step they take to succeed in this vital arena is applying the science that is essential in

For an organisation looking to

“We pride ourselves on listening, evaluating and implementing improvements.”

informing every design.

implement small changes to make an impact, senior designer Drew Blair suggests that “changing to smaller sit/ stand desks will create more space to transform into a collaboration area.

From this detailed understanding

Secondly, a well-appointed staff hub

“We design spaces knowing that these

Catalyst can then advise on a

or kitchen is incredibly important.

are likely to be re-purposed in the

workspace design, providing more

This can be used in a variety of ways

future to meet the demands of rapidly

efficient use of space and effective

for meetings, social interaction,

changing work environments; it’s

work areas. This could be in the form

client events – it is the ultimate in

all about understanding the unique

of a smaller footprint, changing the

flexible space and provides a sense of

and differing needs of organisations,

location or sizes of meeting rooms,

community.”

how these are likely to evolve and

adding collaboration spaces or

the strategies Catalyst can develop

creating more space through smaller

Colourful conversations

to manage these,” says Ruth Parnell,

desks. In many cases Catalyst creates

When designing space, Catalyst

Senior Designer at Catalyst.

pilot sites, trialling different spaces,

focuses on making them as effective

furniture, meeting room sizes to

and efficient as possible. “Take

gather feedback from users prior to

collaborative space for example,”

implementing the changes across the

says Drew. “We concentrate on using

organisation.

colours to stimulate conversations,

“While organisations want to be able to showcase their culture through their workplace environment, they come to us for guidance on how best to achieve this delicate balance between a functional versus flexible office setting.” Of course, she says, there is a genuine

paired with natural light, ideally with “Any size organisation can benefit from

a view, and then identify a location

a utilisation space study,” says Ruth.

situated away from the general

“We have undertaken a range of them,

workplace to ensure acoustics don’t

from 83 workspaces through to over

disturb the day-to-day activities. People

1,200. It’s not just large organisations

must want to use it; therefore, it needs

that need to use their space more

to be attractive and productive.”

efficiently.”

science underpinning the ultimate

Finally, Ruth adds: “To incorporate the

design and how people use the space,

Affordable evolution

correct technology into the workspace

and that this ‘science’ can be gathered

Catalyst director Colin Depree says

we need to drill down into what the

through a workplace utilisation study.

that the company adds significant

key drivers are for that organisation.

value through applying our experience

Technology needs to fit the workspace.

Why do a utilisation study?

across an entire project lifetime.

This includes providing connectivity

“Often the results may not match the

“From interior design, architecture,

not only in collaboration areas but

perception of what the client thinks

cost estimation, project management,

throughout – the modern worker’s

they need,” says Ruth. “A utilisation

build and more, the key benefit is that

office is now the entire workplace

study is an intensive time study of

we understand the customer’s needs

setting.”

the space that the client currently

and their budget to ensure we are

For more information, please visit:

occupies.

delivering a concept that reflects both.

catalyst-group.co.nz

17


For the human space

BEST AWARDS SPATIAL / OFFICES WORKPLACE ENVIRONMENTS CONSTELLATION BRANDS

CELEBRATING 20 YEARS OF BUSINESS

Architecture . Design . Project Management . Construction

C A T A LY S T - G R O U P . C O . N Z

AUCKLAND

18

I N F O @ C A T A LY S T - G R O U P . C O . N Z

WELLINGTON

CHRISTCHURCH


DELIVERING TOTAL PROPERTY SOLUTIONS & EXCEPTIONAL OUTCOMES Across all property sectors throughout New Zealand, CBRE works with clients to streamline their operations, reduce costs, minimise risk, increase cash flow and strategically position their assets to give them a clear competitive advantage. Our global presence and local knowledge makes us logical partners to share our experience and best practice standards from around the world. Whatever your commercial property requirement, contact one of our real estate experts for award-winning, professional advice and get the best returns from your investment.

www.cbre.co.nz

19


Base-isolated for 100%+ NBS rating

End-of-trip facilities

Excellent transport links

Large contiguous floor plates

Excellent natural light and sense of space

20


Victoria Lane

OFFICE CAMPUS 161 VICTORIA STREET, WELLINGTON CENTRAL Stage 1 of Willis Bond & Co’s Victoria Lane Office Campus development delivers over 3,000sqm of large-format office space on Levels 1 to 3 of the new, base-isolated Victoria Lane Apartments building within the transformational Cuba precinct. When completed, the precinct will comprise a commercial campus of more than 15,000sqm of resilient office space in both brand new and transformed heritage buildings. The precinct will also include the high-tech Whitireia WelTec Te Auaha creative campus, prime retail offerings and Wellington’s first base-isolated residential apartments.

Superior resilience

The building will be base-isolated and incorporates a rigid diagrid frame, which works together to offer a level of seismic resilience only available in a handful of other office buildings in Wellington and will provide business continuity assurance for a one-in-500-year seismic event.

Large floor plates and high ceilings

The three identical 1,000sqm plus floors can accommodate multiple layouts at 1 person per 10sqm. An efficient central core, 3+ metre ceilings with extensive glazing on the western and eastern facades will ensure ample natural light and a sense of space. Floors can be leased together, separately or sub-divided.

Outstanding workplace environment

This smart workspace also offers an attractive bundle of benefits for employees including, excellent transport links, on-site parking and end-of-trip options, diverse food, drink and service amenity in the new Victoria Lane retail precinct and nearby Cuba Quarter and easy connections to the CBD. All in a brand-new, resilient building for additional employee peace-of-mind. Ready for occupation mid-late 2022.

AVAI L ABLE F OR LEASE LEVEL

AREA

AVAILABILITY

500sqm+

Mid-late 2022

Level 1

1,000sqm+

Mid-late 2022

Level 2

1,000sqm+

Mid-late 2022

Levels 3

1,000sqm+

Mid-late 2022

Ground/Retail

Paul Soulis

Manoj Ediriweera

Matt Hince

Belinda Forbes (Retail)

021 622 690 paul.soulis@cbre.co.nz

021 471 066 manoj.ediriweera@cbre.co.nz

021 333 005 matt.hince@cbre.co.nz

021 320 880 belinda.forbes@cbre.co.nz

www.cbre.co.nz/1805919Q3 21


A Premium

WATERFRONT LOCATION SITE 9, 15 CUSTOMHOUSE QUAY, WELLINGTON Located on the last available prime CBD waterfront site in Wellington, Willis Bond & Co’s Site 9 development offers resilient, premium office space with stunning harbour views within the newly landscaped Kumutoto wharf area.

Base-isolated for superior safety

Like the award-winning neighbouring PwC Centre, this new commercial building will be low-rise and base-isolated providing business continuity for a one-in-500-year seismic event.

Large contiguous floor plate options

The final two floors are available from late 2021. These flexible, contiguous 900sqm floor plates can accommodate one person per 10sqm and offer panoramic views across the harbour and back toward the city. Both floors can be leased together, separately or sub-divided. There is also 350sqm of premium retail space available on the ground floor.

Stunning CBD waterfront location

Situated in the attractive and newly landscaped Kumutoto wharf area, the building is within easy walking distance of Lambton Quay and the railway station, providing easy access to business connections and major transport and amenity hubs for employees. To be completed late 2021.

A VA IL A BL E FO R L E ASE LEVEL

AREA

AVAILABILITY

Ground/Retail

350sqm

Late 2021

Level 1

900sqm

Late 2021

Level 2

900sqm

Late 2021

Level 3 - LEASED Level 4 - LEASED

Matt Hince

David Fisher

Paul Soulis

Manoj Ediriweera

021 333 005 matt.hince@cbre.co.nz

021 840 755 david.fisher@cbre.co.nz

021 622 690 paul.soulis@cbre.co.nz

021 471 066 manoj.ediriweera@cbre.co.nz

www.cbre.co.nz/1520199Q3 22


PREMIUM OFFICE SPACE WITH HARBOUR VIEWS

Prime waterfront location

Base-isolated for 100%+ NBS rating

360-degree natural light and views

Large contiguous floor plate options

End-of-trip facilities available 23


LEADING INSIGHT with Scott Miller and Ignatius Black “Stronger Buildings, Stronger City”

I

t’s been a long road, but Wellington is coming forward

Scott Miller says that the city-wide approach being taken

strongly after the November 2016 earthquakes. The

to structural and seismic engineering has taken on

city, its buildings and the people who own and upgrade

board many learnings from Christchurch. These lessons

them are coming out of the upgrade process better,

have been absorbed by building owners, occupiers and

with more proactive building owners and specialists who are

suppliers alike as they work to build value back into

better informed, more knowledgeable, and altogether better

buildings and increase value through strengthening – all

equipped to make Wellington’s buildings stronger and more

underpinned by a number of fundamental factors.

marketable. Factor 1: A far better understanding of how buildings One such specialist company is consulting engineering

respond to earthquakes.

firm Silvester Clark, which has been involved in many

“Right across the industry we’re seeing a steep change

upgrade projects including the Central Fire Station, the

in learning after Christchurch and Kaikoura,” says

Backbencher building, 186 Willis Street, 276 Lambton

Miller. “This has led to a raft of new recommendations

Quay, 268 Oriental Parade, The Basin Reserve Museum

and changes to standards that are ongoing, a continual

Stand – and many more.

learning experience for everyone. There is now much more attention to detail, and uniformity in approach, which is a

Love Your Workspace talked to Silvester Clark Managing

really positive thing.”

Director Scott Miller and Wellington Regional Manager Ignatius Black on the work they are doing, the changes

Developments in software and technology are enabling

happening across Wellington, the four main factors that

a much higher degree of 3D dynamic assessment of

underpin them, and the positive impacts they are seeing in

a building says Ignatius Black, leading to pushover

the market.

assessments and getting much more out of building design. “Pushover analysis technology enables us to model a building in a computer, and then put a known earthquake through the model, with the increased detail maximising the existing building strength. This allows us to hone in on problem areas, find the weakest links, and then rectify them. This leads directly to better design and

Scott Miller

strengthening, and creates many benefits for buildings and clients, including reduced costs and less disruption.”

Ignatius Black 24


Factor 2: New methods of strengthening. New building methods - such as base isolation, buckling restrained braces (BRBs) and viscous dampers - are coming to the fore, says Miller. “We currently have two buildings with BRBs on site, which are becoming more mainstream as an economical solution. There has also been a greater use of low-damage technologies such as base isolation. In places like Japan, base isolation has been common for a number of years. In New Zealand we invented it; it has been considered uneconomical, but that view is changing. There has been a definite flip since Christchurch.” Factor 3: Increasing number of peer reviews. This is a major factor driving time and cost reductions, says Black. “A peer review is a more productive process. The peer reviewer is often involved early and gets a good understanding of the design approach. With a Council review, there is not an opportunity for this, and the overall review process tends to take longer. A peer review really speeds

A visual representation from the software Silvester Clark uses to analyse a building’s response to a seismic event.

up and smooths out the consent process. It is also a good thing for all involved to have another set of educated eyes looking at designs.” Factor 4: Increased focus on seismic restraint of non-structural components. Services, ceilings and partition walls are often costly casualties of an earthquake, says Miller. “After the 2013 earthquake many buildings were structurally okay but their services were not, and it can cost far more overall to repair them if not done well.” Citing the BNZ building at Harbour Quays, Miller says many proactive owners are now saving money by spending on services restraint. “Buildings are designed for one in 500-year events, but if you haven’t designed your services accordingly you could get a lot of damage internally with low levels of shaking and no damage to the building structure.

Wellington Central Fire Station – strengthened as an importance level 4 building with concrete shear walls and ground anchors.

“Restraining services will mitigate damage to services and fitouts in seismic events, which will save on costly repairs and require less down-time for repairs, increase safety and increase potential insurance premium benefits.” So, how is Wellington coming out of this a better place? All of this work and knowledge is already benefiting the city, says Miller. “We appreciate that owners have been going through pain to strengthen their buildings, but when they come out the other end their buildings are setting themselves apart in terms of rental rates. “Ultimately what we’re seeing is a better understanding, leading to safer buildings and less potential damage during events. We’re also seeing new buildings designed to a higher standard, and an overall improvement in the building stock over time. It’s a good feeling knowing you’re making a positive difference to the city landscape.”

25

The Backbencher – strengthened with concrete shear walls, steel cross bracing to floor/roof diaphragms, and out of plane strengthening to brick walls.


FUJITSU TOWER

HIGH PROFILE CONVENIENT LOCATION SPACES AVAILABLE Q2/3 2021

284sqm to 2,980sqm

Q2/3 2023

502sqm to 2,664sqm

David Fisher 021 840 755 david.fisher@cbre.co.nz Manoj Ediriweera 021 471 066 manoj.ediriweera@cbre.co.nz

141 THE TERRACE, WELLINGTON CENTRAL Fujitsu Tower is an 18-level office tower sitting above a twolevel retail podium located midway along Lambton Quay. The building provides dual access to both Lambton Quay and The Terrace. Fujitsu Tower is available for the first time in a number of years and is a great opportunity to secure efficient accommodation in a fantastic location. The building provides the opportunity for cost efficiencies with the floors below Level 8 available at lower rentals. `` Regular shaped efficient floors with spectacular outlook from upper levels `` 81% NBS (based on a DSA completed in July 2014) `` Part and multiple floors available `` Naming rights available from Q2, 2023 `` Floors to be fully refurbished

www.cbre.co.nz/1327659Q3 26


Indicative Floor

EAGLE TECHNOLOGY HOUSE

135 VICTORIA STREET, TE ARO, WELLINGTON

LARGE TE ARO FLOOR

Built in 1989 and extensively upgraded in 1999 and 2018, Eagle Technology House is a statuesque landmark building in the fashionable Cuba precinct. With the seismic upgrade now completed, this 11-storey building has leased well with Crown tenancies.

SPACES AVAILABLE

`` Large 1,000sqm floors

Level 4

1,030sqm

Available

`` 80% NBS under the revised C5 guidelines dated 9 Aug 2019

Level 9

995sqm

1 August 2020

`` Flexible layouts to maximise efficiency

Level 10

965sqm

1 August 2020

`` Generous window coverage on all four sides allowing superb natural light throughout `` Spacious lift lobby, air-conditioning, sprinklers, secure covered car and bike parking and City Link fibre optic cabling

David Fisher 021 840 755 david.fisher@cbre.co.nz Matt Hince 021 333 005 matt.hince@cbre.co.nz

www.cbre.co.nz/1319499Q3 27


ADVANTAGE DELIVERED Do you want to retain tenants, streamline operations, reduce costs and minimise risk? Our Property Management team deliver outstanding asset management outcomes for landlords throughout New Zealand. We maximise the value of your assets whilst minimising the stress associated with property ownership. As the unrivaled leader in commercial real estate services, CBRE is committed to bringing the combined power of our global platform and local expertise to every client we proudly serve. What sets us apart?

THE TEAM KEEPS OPERATIONAL SUPPORT ACTIVITIES TICKING ALONG IN THE BACKGROUND.

Building is safe, compliant and in great working order.

Work environment is comfortable and meets the needs of community.

• Stable, experienced team • Talent retention • Ongoing in-house digital technology development • Seamless integration with Facilities Management • Targeted reporting and analytics of building data • Access to diverse property expertise within CBRE Contact one of us to find out how we help you transform your real estate into real advantage.

Workplace communications happen seamlessly.

For more information contact: Graeme Lundie

Daniel Phillips

National Director

Associate Director

021 586 343

graeme.lundie@cbre.co.nz

Services are tailored.

021 192 2292

daniel.phillips@cbre.co.nz Data analysed, trends identified and workplace is adaptable.


Creating inspiring spaces Department of Internal Affairs St Paul Square (Project Space)

Furniture solutions to boost productivity in your workplace. • Government Departments • Corporate Businesses

BNZ Spark Central Vecos Smart Locker Wall and Collaboration Space

• Educational Facilities • Healthcare Facilities

Contact our team to learn more.

Ministry for Primary Industries HQ Charles Fergusson Building (Working Hub)

Showroom: 303 Willis Street, Wellington sales@vidak.co.nz vidak.co.nz


DIMENSION DATA HOUSE 157 LAMBTON QUAY, WELLINGTON

Dimension Data House at 157 Lambton Quay is a landmark building that ticks all the boxes. Level 21 offers 1,000sqm of large open plan office space with excellent natural light and panoramic views of Wellington Harbour and the inner city. Fully refurbished with new ceiling tiles, lights, carpet and bathroom facilities. Close to Lambton Quay retail and major corporate headquarters, financial institutions, government, and the courts, 157 Lambton Quay’s location is truly first class. LEVEL

AREA

AVAILABILITY

21

1,000sqm

December 2019

www.cbre.co.nz/1324609Q3

FULL SERVICE CONCIERGE

Proudly owned and managed by

www.precinct.co.nz

ON-SITE RETAIL/DINING AMENITY

CAR PARKS ON-SITE

Please contact:

Matt Hince Paul Soulis David Fisher Manoj Ediriweera

P 04 474 9811 P 04 474 9824 P 04 474 9820 P 04 474 9810 30

HARBOUR VIEWS

END-OF-TRIP FACILITIES

M 021 333 005 E matt.hince@cbre.co.nz M 021 622 690 E paul.soulis@cbre.co.nz M 021 840 755 E david.fisher@cbre.co.nz M 021 471 066 E manoj.ediriweera@cbre.co.nz


DESIRABLE OFFICE BUILDING

VIBRANT CBD OFFICE/RETAIL

OF F I C E AVAI L ABLE F OR LEASE

40 MERCER STREET, WELLINGTON CENTRAL 40 Mercer Street is a modern, well-managed building on the corner of Mercer, Willis and Victoria Streets. There is an in-house café, mini gym and fabulous levels of natural light. The building has efficiently shaped floors and significant refurbishment has been undertaken throughout over recent years. Level 4 will be refurbished to be open plan and there is potential for naming rights of the building. Existing tenants in the building include: Plunket, Volpara and Pharmac. We currently have a full floor, part floor and high profile retail tenancies available.

LEVEL

AREA

AVAILABILITY

Level 4

417.3sqm

Early 2020

Part Level 7

228.1sqm

Available now

RETAI L AVAI L ABLE F OR LEASE

www.cbre.co.nz/1307348Q3B 31

LEVEL

AREA

AVAILABILITY

Ground/Retail

178.5sqm

Q4 2019

Ground/Retail

136.3sqm

Q4 2019

David Fisher

Paul Soulis

Belinda Forbes (Retail)

021 840 755 david.fisher@cbre.co.nz

021 622 690 paul.soulis@cbre.co.nz

021 320 880 belinda.forbes@cbre.co.nz


32


Significant ground floor amenity, concierge and licenced café

Don’t judge a book by its cover 7 Waterloo Quay, Wellington Central

Seismic upgrade designed to achieve at least 80% NBS

Highly efficient floors with exceptional views and natural light

Wellington’s largest floor plates

Best in class end-of-journey facilities

High quality office space between 1,200sqm to 15,000sqm available for lease. The landlord, Argosy, is nearing the end of a major upgrade and repositioning project, taking this iconic Wellington asset into the next phase of its existence. Aside from a significant seismic upgrade, the landlord has taken the opportunity to improve the building’s infrastructure and remove any residual asbestos. Argosy is in advanced negotiations with several major Crown tenants reinforcing the fact that 7 Waterloo Quay is ideally placed to address the acute shortage of office space in 2020. It can offer tenants large scale, high quality, efficient and flexible accommodation in a core strategic location. Matt Hince

David Fisher

021 333 005 matt.hince@cbre.co.nz

021 840 755 david.fisher@cbre.co.nz

Paul Soulis

Manoj Ediriweera

021 622 690 paul.soulis@cbre.co.nz

021 471 066 manoj.ediriweera@cbre.co.nz

www.cbre.co.nz/13145719Q3

33


REFURBISHMENT WORKS

WINNING AT WATERLOO 7 Waterloo Quay is coming back!

34


F

or workspaces to be great

systems that utilise vertical risers,

“With recent changes to the

people-oriented spaces,

going with a floor-by-floor method for

assessment of seismic resilience, we

first they have to be safe. 7

now,” says Burns. “This means that

undertook seismic strengthening

Waterloo Quay, the landmark

the whole air distribution system is

of the building and these works are

completely new and stand-alone”

expected to be complete by December

14-storey office building owned by Argosy Property and home to NZ Post, was impacted by the Kaikoura earthquake. However, a substantial programme of works is bringing the building back to market and attracting quality Crown tenants. Grant Burns of Argosy took time to speak to Love Your Workspace to talk us through the extensive work that been undertaken to improve the building’s resilience, and about the positive future

Matt Hince, Senior Director of CBRE’s Advisory & Transaction Services team, says that the timing of the upgrade of 7 Waterloo Quay is on point, as Wellington office stock levels are currently very low, with new supply some time away.

that now lies ahead for the building within Argosy’s substantial portfolio.

2019.” “We are in advanced negotiations with a number of Crown tenants for significant space in the building, and we expect to announce unconditional commitments soon with fitouts likely to commence in the first quarter of 2020. We are excited about the calibre and mix of Crown tenants we are working with and look forward

“With historically low vacancy rates

to strengthening this relationship

and any meaningful increase in office

further.”

From a causal glance from street-level,

supply still several years off, 7 Waterloo

it probably did not seem initially that

Quay is primed to provide a much-

Argosy has been focusing on

the 2016 Kaikoura earthquake had

needed release valve in 2020. This

sustainability and greening its wider

done much damage to the ‘grand old

landmark Wellington property has

portfolio. Burns says that this focus

lady’ at 7 Waterloo Quay. And, from

outstanding harbour views adjacent to

on sustainability is good business for

a structural perspective, this was

the Central Railway Station, Wellington

Argosy. “It’s an attractive strategy and

confirmed; soon after the earthquake,

CBD and Parliament. Moreover, the

a clear way to differentiate ourselves

independent engineers reported that

floors are amongst Wellington’s largest

in the market, so we are undertaking

the building remained structurally

and offer incredibly efficient office

more green developments within our

sound. However, like many other

space due to the regular rectangular

portfolio, such as the $64 million

structures in Wellington, the building

shape which can accommodate any

development at 8-14 Willis Street

had suffered considerable damage

configuration of fitout and facilitate all

for Statistics New Zealand that will

to its fitout and services. A seismic

workspace styles.

target a 6 Green Star Built rating and

upgrade was added to the earthquake damage reinstatement works.

5 Star NABERSNZ energy efficiency “Argosy is taking the opportunity

rating. Construction is expected to be

to market the building’s attractive

completed by April 2021.”

Grant Burns says that the internal

amenities including a huge activated

reinstatement works in the building

ground floor accommodating a

are now largely completed. “All of the

licensed café, a variety of meeting

badly damaged tenancy spaces have

areas, a concierge service and best-in-

been completely stripped back to

class locker and showering facilities.”

the bare structure, and they all have

This is all part of Argosy’s Create – Manage - Own strategy that is all about creating sustainable growth, says Burns.

completely new in-ceiling services, all

Burns says that demand for space at

designed to 100% NBS. We undertook

7 Waterloo Quay from late 2019 has

“We’ve been steadily greening the

a thorough asbestos removal process

dictated the reinstatement timeframe.

portfolio because over time green

which has been independently

“With the exception of level 12,

buildings deliver higher occupancy,

certified.

reinstatement works were substantially

stronger tenant retention, improved

completed by March 2019. Level 12 is

tenant satisfaction and even lower

“We also made the decision to not seek

expected to be completed by March

staff turnover. All of these things are

to immediately reinstate the central

2020.

good for our tenants, and positive for

plant fresh air supply and extract

Argosy.”

35


RADIO NZ HOUSE 155 THE TERRACE, WELLINGTON CENTRAL The landlord has created four quality industrial style tenancies on Level 1 of this building. Only one suite remains for lease. Key features include: • • • • • •

Exposed ceilings Polished floors, cable trays, new LED lighting 290sqm open plan with kitchenette End of trip facilities Balcony Good natural light to two sides

A V A I L A BL E FO R L E A S E LEVEL Part Level 1

AREA

AVAILABILITY

290sqm

Immediately

David Fisher

Manoj Ediriweera

021 840 755 david.fisher@cbre.co.nz

021 471 066 manoj.ediriweera@cbre.co.nz

www.cbre.co.nz/1320849Q3

TERRACE CONFERENCE CENTRE HOUSE 114 THE TERRACE, WELLINGTON CENTRAL This property has recently changed hands and is undergoing significant refurbishment and modernisation. There are a large variety of suites from full floors of 325sqm to small suites of 40sqm available. Key features include: • • • •

Full floors have polished concrete floors LED lights and modern timber ceiling tiles Double glazed windows Good natural light to three sides

AVAI L ABLE F OR LEASE LEVEL

AREA

LEVEL

AREA

Part Level 1

82sqm (Available now)

Levels 9-11

325sqm each (Late 2020)

Part Level 5

160sqm (Available now)

Part Level 12

135.6sqm (Available now)

Part Level 6

39sqm (Available now)

Part Level 13

142.85sqm (Available now)

Part Level 7

190sqm (Available now)

Part Level 14

118sqm (Available now)

David Fisher

Paul Soulis

021 840 755 david.fisher@cbre.co.nz

021 622 690 paul.soulis@cbre.co.nz

www.cbre.co.nz/1620199Q3 36


CO-WORKING OFFICES

Digital Nomad is a boutique, premium quality co-working space

Inspiration for Digital Nomad is drawn from great leaders,

right in the heart of the Wellington CBD. Their work and meeting

innovative thinkers and influential figures throughout history.

spaces are brimming with all the facilities you need to underpin

Their mission is to facilitate the growth of local businesses and to

your professional journey. An inner city oasis at an all inclusive

foster a community of original and determined entrepreneurs.

price of just $165 + GST per person per week!

GREAT LOCATIONS

PREMIUM FACILITIES

JUST $165+ GST

24/7 swipe card access

Electric sit/stand desks

high-speed fibre internet

central city locations

formway B chairs

fully furnished kitchen

open-plan offices

large external monitors

dedicated bathrooms

outdoor areas

standing mat

shower facilities

meeting rooms

storage & filing units

bike storage

conferencing facilities

PAUL SOULIS

| 021 622 690 | paul.soulis@cbre.co.nz

daily cleaning service

DAVID FISHER | 021 840 755 | david.fisher@cbre.co.nz

cbre.co.nz/ 1201926Q3


LARGE REFURBISHED CENTRAL CITY OFFICE FLOOR

New base build refurbishment

Core CBD location

Good natural light

THE WILLESTON CENTRE

22 WILLESTON STREET, WELLINGTON CENTRAL A large refurbished office floor featuring a new base build refurbishment including new carpet, ceiling tiles, LED lighting and painted perimeter. The landlord would consider splitting the floor to accommodate tenants requiring smaller space between 600sqm to 1,252sqm. Good outlook and natural light, great value rent and core CBD location. Also available is a high profile retail site and a lower ground floor which would suit a gymnasium or other alternative use.

www.cbre.co.nz/1319036Q2 38

OF F I C E AVAI L ABLE F OR LEASE LEVEL

AREA

AVAILABILITY

Level 2

1,252sqm

Immediate

RETAI L AVAI L ABLE F OR LEASE LEVEL

AREA

AVAILABILITY

Ground/Retail

139sqm

Immediate

Lower Ground

648.92sqm

Immediate

Matt Hince

Belinda Forbes (Retail)

021 333 005 matt.hince@cbre.co.nz

021 320 880 belinda.forbes@cbre.co.nz


NEWLY REFURBISHED

All round natural light

Excellent transport links

Available now

REDSHIELD HOUSE

AVAI L ABLE F OR LEASE

79 BOULCOTT STREET, WELLINGTON RedShield House was built in the 1980s with 14 levels of office accommodation and two floors of basement car parking. The building has just undergone a significant seismic upgrade and has been newly refurbished throughout including new LED lighting, ceiling grid, carpet tiles, sprinklers, lift motors and refurbished lift cars. The building is well-positioned for good natural light and provides easy access to the motorways and the CBD. The side core provides for very efficient floor plates. Floors are immediately available.

www.cbre.co.nz/1320389Q3 39

LEVEL

AREA

AVAILABILITY

Part Level 2

436sqm

Immediate

Level 3

515sqm

Immediate

Level 4

515sqm

Immediate

Level 5

515sqm

Immediate

Level 6

515sqm

Immediate

Manoj Ediriweera

David Fisher

021 471 066 manoj.ediriweera@cbre.co.nz

021 840 755 david.fisher@cbre.co.nz


SOUGHT AFTER OFFICE SPACE

A-Grade seismic rating

Good levels of natural light

End-of-trip facilities

QUAL IT HOUSE

AVAI L ABLE F OR LEASE

22 THE TERRACE, WELLINGTON CENTRAL Qual IT House is a high quality B-Grade building with an A-Grade seismic rating. Following a tenant relocation, three floors will become available in late 2020. The floors will be fully refurbished and presented open plan. There are good levels of natural light throughout the building. End-of-trip highlights include in-house car parking, showers, and concierge. The Sofitel and Bolton Hotel are adjacent the building making this a popular location with high occupancy.

www.cbre.co.nz/1420199Q3 40

LEVEL

AREA

AVAILABILITY

Ground

41.6sqm

Sept 2020

Level 2

425.2sqm

July 2020

Level 7

517.6sqm

Sept 2020

Level 8

517.6sqm

Sept 2020

David Fisher

Matt Hince

021 840 755 david.fisher@cbre.co.nz

021 333 005 matt.hince@cbre.co.nz


EST. 1961

MARKET LEADERS IN WELLINGTON CBRE supports RJH’s market leading service and product offering and believes they are one of the best organised and responsive landlords in the city. Their tenants benefit from hands on, client focussed management.

N EW Z E A L A N D’ S L A R G E ST PR IVAT E CBD OFFICE BUILDING OWNER WITH 18 WELLINGTON BUILDINGS MARKET LEADERS IN SMALL OFFICE SUITES, FOCUSING ON 50-600SQM PROMPT HANDS-ON MANAGEMENT O F F E R I N G VA R I O U S O PT I O N S TO S U I T LESSEES’ CHANGING REQUIREMENTS REFURBISHED SPLIT FLOORS READY/ CONSTRUCTED TO SUIT OCCUPIERS.

73 The Terrace

342 Lambton Quay

The Bayleys Building

City Chambers

David Jones

Equinox House

Lambton House

Brandon House

Legal House

Midland Chambers

Pencarrow House

Solnet House

Wellington Chambers

Woodward House

Harbour Tower

Civic Assurance

Featherston House

Lambton Centre

WELLINGTON’ S L ARGEST RETAIL PREMISES CBD LESSOR 58 PRIME RETAIL PREMISES , TOTALLING ALMOST 14 ,000SQM 35 SHOPS ARE LOCATED ON THE MAIN RETAIL THOROUGHFARE O F L A M BTO N Q UAY PR IVAT E , WE L L- EQ U I PPE D GYMNASIUMS WITH FULL TIME T R A I N E R S A R E AVA I L A B L E TO ALL LESSEES AND THEIR STAFF.

Small office suites of all sizes catering for small to medium businesses are available across their portfolio. All suites provide a modern kitchenette and are refurbished. For a breakdown of available options, contact on of CBRE’s team. MATT HINCE | 021 333 005 | matt.hince@cbre.co.nz DAVID FISHER | 021 840 755 | david.fisher@cbre.co.nz PAUL SOULIS | 021 622 690 | paul.soulis@cbre.co.nz MANOJ EDIRIWEERA | 021 471 066 | manoj.ediriweera@cbre.co.nz BELINDA FORBES | 021 320 880 | belinda.forbes@cbre.co.nz www.rjholdings.co.nz


COLLABORATION + VISION

PLACEMAKING Where retailing meets emotional and social well-being.

P

lacemaking: strategically curating retail precincts that create happy, fulfilled consumers and buzzing social communities, alongside sustainable urban environments - driving sales, rental growth and increasing investment returns. Belinda Forbes, Retail Specialist at CBRE Wellington says that the futurefacing concept of placemaking sees the regeneration of a previously unappealing, under-performing or undeveloped precinct. “Through understanding consumers’ holistic wants and needs and then curating a compelling mix of retail offerings combined with wonderful social spaces, placemaking is essentially changing the way consumers engage with precincts and retailers. It is all about being relevant and meaningful to the community, making consumers feel something that draws them to, keeps them at, and sees them returning to a place – in turn driving sales, rental growth and encouraging emotional and social well-being in today’s’ fast-paced life.” And this isn’t just a global concept…it’s happening here in our cool little capital city.

“It’s a thing. It’s here. It’s reviving spaces and places, and engaging with consumers, driving a whole new way of shopping, eating, drinking, socialising, and… well… living!” 42


Forbes says that a fine example of placemaking is Lombard Laneway in Te Aro. A purposeful re-development conceptualised in 2011 by Luigi Muollo and Pat Vinaccia from Cook Strait Properties, the focus was on providing a precinct that connected with the physical, emotional and social well-being of urban Wellingtonian’s. Previously a run-down, vehicledominated and unappealing precinct, the lane and surrounding public spaces were under-utilised and neglected.

Luigi Muollo says, “We worked on a principle of ‘what’s better for everyone.” We partnered with the Wellington City Council to create a safe and happy place for the public, where they would want to stop, shop, eat and drink, lounge and enjoy.” The council developed new lighting, fantastic paving and a wonderful green space that can be enjoyed by all. The architectural style of each building is distinctly different, yet they complement each other and their surroundings,” said Muollo. The once desolate precinct now features appealing social spaces with a beautiful green knoll flowing from the bustling Pickle & Pie café. Around the bend, is a hip ‘destination’ laneway where visitors can enjoy a range of retail offerings including boutique NZ and international fashion, fine singleorigin coffee, and distilled gin.

There is a slick corner site at the far end of the laneway, bustling with more boutiques. Additionally, the precinct offers work suites for people to work and play in a well thought-out environment. “The outcome of this transformation into a safe, happy, social and entertaining space has significantly increased not only the public’s enjoyment and use of the area, but the influx of foot traffic. Tenants in the surrounding streets have spoken about the uplift in business, which is testament to the thought and care put into the re-generation of this area,” said Muollo. But Lombard Laneway is not alone delivering the tangible societal benefits of placemaking in Wellington. Other sites connecting with consumers through this approach include The Hannah’s Factory precinct in Te Aro, where The Wellington Company has created an inclusive ‘place’ that includes a large number of industrial style apartments in the heart of this precinct. They, and a number of workspaces, are interlinked by superb laneways that lead into a large courtyard filled with eateries and bars. Jessie Street and College Street in Te Aro also offer a compelling mix of live, work and play through its stylish eateries, boutique fashion retailers, homeware stores and chic apartments. Most recently, boutique low-rise living has been added, complete with interlinking laneways and green spaces. 43

Ghuznee Street has also transformed over the last 10 years, becoming a relevant and genuine placemaking destination. The street offers consumers a wonderful mix of boutique fashion, homewares, hip eateries, independent theatre, cute coffee spots, a super stylish gin bar and the Glover Park green space. “In short, Wellington is winning”, says Forbes. “Online retail will always have its place, but the success of placemaking projects is revitalising the relevance of bricks and mortar by creating unique and relevant spaces for consumers to live, work, socialise and shop!

“This opportunity to connect with consumers and enhance their life experience, is benefiting retailers and property investors all over the world. With a thoughtfully curated retail offering, combined with a place that meets social and emotional well-being – once desolate or underused spaces can thrive.” Photos Left Page Top left: Lombard Laneway undeveloped Row 2: Eva Street/Hannah’s Factory (left) and Jessie Street (right) Row 3: Lombard Laneway development Bottom: Eva Street/Hannah’s Factory (left) and Ghuznee Street (right) Photo Right Page Lombard Laneway and Glover Park


E

nsuring alignment between an

MARKET RESEARCH

organisation’s growth strategy and their property requirements is vital

EVOLVING PROPERTY STRATEGY & AGILITY

for an optimal outcome. Property

enables businesses by facilitating activity and providing environments in which people are empowered to support the growth of their business. When businesses are looking to develop and change, their workspace must evolve with them. Currently, the Wellington office market has a historically low vacancy rate of 0.4% for Prime office buildings, being 1,755sqm over a 400,444sqm area. With limited market options for occupiers; looking further ahead allows for a wider range of options including development, refurbishment and lease expiries. Consistent with the lack of options in the market, rental levels have seen significant increases in the past three years. In tandem, the absolute operating costs, particularly insurances, have also been placing pressure on landlords to increase rents to keep up with these costs. Depending on the structure of an occupier’s lease, these OPEX increases may have fallen on some tenants as well, however traditionally in Wellington this has been placed on the landlord due to the gross lease structure. New development of office space in Wellington is expected to occur; however, only once a reasonable proportion of precommitment is reached. The timeliness of development continues to present difficulties due to a disconnect between lease expiries and the completion of new developments. The constrained options in the market requires occupiers to be more astute in assessing their current and future property requirements and formulate a strategy to find a space which can deliver an optimal solution. Successfully predicting space requirements is particularly difficult, which is compounded when managing existing lease commitments.

44


Vacancy Rate

Market Stock (sqm)

Wellington Office Market

Past

With an ever-changing regulatory environment in Wellington,

Landlords are recognising this rising demand for agility, and this is being

Headquarters

particularly around seismic resilience,

reflected in the suite of services being

occupiers are not only assessing the

provided to occupiers. It is becoming

physical space, but also the landlord.

more common that an anchor

Occupiers are drawn towards

location for an occupier is secured

Present

professionally managed space which have robust resilience, capital and

and access to additional landlord facilities such as co-working lounges

Headquarters

occupancy long term plans.

and wellness centres.

The creation of long-term

A comprehensive property strategy

relationships with landlords can

for occupiers can increase their

provide occupiers with more visibility

operating resilience and flexibility

and flexibility when negotiating, such as with extensions, rent reviews

Satellite Office

and area variations. These long-term relationships create value for both

Project Office

Flexible Space

efficiency. CBRE Research ensures that our clients are equipped with

Future Satellite Office

while potentially increasing space use

Project Office

the most relevant and up-to-date

parties as increased WALT (lease

information, allowing for informed

length) in buildings provides more

decision making.

certainty for landlords. Property

Headquarters

strategy continues to mature and is now crafted more holistically, with corporate occupiers looking to increase their portfolio agility. This

CafĂŠ/Gym Membership

Meeting On-demand

maturity is supporting increased resilience to shocks, and flexibility for growth and contraction.

Richard Carr Senior Research Analyst CBRE Wellington

Flexible Space

45

022 475 2277 richard.carr@cbre.co.nz


CBRE WELLINGTON MARKET LEADERS IN OFFICE LEASING EXCEPTIONAL

55,000SQM

Transacted

Strong rapport with

track record and experience in office leasing

81

deals in Wellington in the past 18 months

of office space leased by our Wellington team in the past 18 months

GOVERNMENT, CORPORATES, LOCAL AUTHORITY tenants

CBRE Wellington is proud to have assisted a large number of organisations with their office accommodation, with tenancies ranging from 60sqm to 11,000sqm throughout the city. The following page showcases a selection of our recent transactions. If you’re looking to lease commercial property in 2019, partner with CBRE to help transform your real estate into real advantage. Matt Hince Senior Director 021 333 005

FIND OUT MORE www.cbre.co.nz

David Fisher Director 021 840 755

Paul Soulis Associate Director 021 622 690

Manoj Ediriweera Associate Director 021 471 066

Build on Advantage


A selection of recent leasing success:

700SQM

Meridian Building

3,100SQM

1 Grey Street

2,145SQM

1,100SQM

Plimmer Towers

100 Willis Street

981SQM

222 Lambton Quay

2,080SQM

79 Boulcott Street

1,466SQM

Ranchhod Tower

750SQM

100 Tory Street

2,068SQM

135 Victoria Street

1,200SQM

93 The Terrace

1,200SQM

20-36 Ballance Street

585SQM

15 Willeston Street

2,957SQM

Harbour Tower

9,163SQM

113 The Terrace

668SQM

Pencarrow House

1,602SQM

10 Brandon Street

700SQM

20 Customhouse Quay

563SQM

17 Whitmore Street

760SQM

8 Gilmer Terrace

1,110SQM

50 Customhouse Quay


TO FIND A WORKSPACE YOU’LL LOVE, CONTACT THE OFFICE LEASING TEAM TODAY

Matt Hince

Senior Director (Office) 021 333 005 matt.hince@cbre.co.nz

David Fisher

Director (Office) 021 840 755 david.fisher@cbre.co.nz

Paul Soulis

Associate Director (Office) 021 622 690 paul.soulis@cbre.co.nz

Manoj Ediriweera

Associate Director (Office) 021 471 066 manoj.ediriweera@cbre.co.nz

Belinda Forbes

Negotiator (Retail) 021 320 880 belinda.forbes@cbre.co.nz

CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)

Visit us online www.cbre.co.nz/workspace-wellington

The information in this document is general in nature and is a guide only. It does not take into account your individual circumstances. Before acting you should check the accuracy of the information and seek your own independent financial and legal advice. The information must not be relied upon to make any investment decisions. The principal and its agent will not be liable for your failure to verify the information or seek appropriate advice.