CHRISTCHURCH
2022 Office Space For Lease
Squeezing the CBD tight What the surge in demand for CBD office space means for those seeking new premises
Avoiding the fitout cost headache Overcoming time, quality and cost risks to achieve a new fitout for your office space
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Properties Advertised Inside CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008)
Great natural light
Nine secure car parks
Available now
Great views
Make a Statement Premium Office with River Views 12 OXFORD TERRACE, CHRISTCHURCH CENTRAL
Sitting on the south bank of the Avon River at the edge of the Health Precinct and West End, this +MAP Architects designed office building enjoys a leafy outlook along Oxford Terrace, a vista highly sought after. The Landlord has taken care to ensure the property has a premium feel. Bespoke finishes can be found throughout the common areas and in each lift lobby, while the ground floor entrance way is currently being reprofiled to achieve a premium aesthetic. Each floor of the ground + 5 level building benefits from a high quality base build, natural light on three sides and largely column free floor plates, enabling a wide array of potential fit-outs.
AVAILABLE FOR LEASE LEVEL
AREA
1
346.4sqm
2
346.4sqm
3
346.4sqm
4
283.1sqm
5
283.1sqm
www.cbre.co.nz/CCH100076 Please contact your agent for more information
Mitchell Wallace
Adam Wallis
mitchell.wallace@cbre.co.nz +64 27 664 4773
adam.wallis@cbre.co.nz +64 27 695 9989
Executive Views of the City 62 WORCESTER BOULEVARD, CHRISTCHURCH CENTRAL
A rare opportunity to secure 1,192sqm across consecutive floors in the tightly held West-End Precinct. Anthony Harper Tower features 11 levels of high quality office space plus a two-story entrance lobby, ground floor cafe, and basement car parking. The 5 Green Star rated building has been strengthened to 83% NBS, maximises natural light, and provides excellent views of the city and Southern Alps. Please contact your agent for more information
AVAILABLE FOR LEASE LEVEL
AREA
Mitchell Wallace
4
596sqm
5
596sqm
mitchell.wallace@cbre.co.nz +64 27 664 4773
Adam Wallis www.cbre.co.nz/CCH100025
adam.wallis@cbre.co.nz +64 27 695 9989
Turn Key West-End Offering 47 HEREFORD STREET, CHRISTCHURCH CENTRAL
Wynn Williams House is located in the sought after West-End Precinct on the north-east corner of Hereford and Montreal Streets. The building was built in 2014 to 180% NBS and is base isolated. It enjoys unobstructed views from three sides and great natural light. Level one provides a quality existing fitout including reception and open plan work area, multiple meeting rooms ranging in size, web-conferencing rooms and storage. Please contact your agent for more information
AVAILABLE FOR LEASE LEVEL
AREA
Mitchell Wallace
1
723sqm
mitchell.wallace@cbre.co.nz +64 27 664 4773
Adam Wallis www.cbre.co.nz/CCH100117
adam.wallis@cbre.co.nz +64 27 695 9989
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LOVE YOUR WORKSPACE | AUCKLAND ISSUE 11
Squeezing the CBD tight
While Auckland continues to struggle with increasing office vacancy, Christchurch is finding the opposite. Tenants have flocked to the CBD for high-quality office space, leaving limited options for those now ready to move. The CBRE Christchurch office vacancy survey conducted in December 2021 highlighted a 5.3% vacancy rate for CBD office. The most recently released figures have risen only. 5% due to the introduction of a 1,600sqm building vacancy offering circa 300sqm floorplates which, given the size and location, are likely to be leased quickly. This continually tight vacancy trend is alerting tenants who are considering their next step to the fact that the process of reviewing leases must be undertaken well in advance of lease expiry. Mitchell Wallace, Senior Negotiator, CBRE Christchurch Office Leasing says, “We’re being contacted by more and more tenants who are approaching the end of their lease cycle and are needing to understand what options they have. With a general lack of availability in the CBD, competition is fierce for the limited space that is available for immediate occupancy and often these enquiring tenants are unaware of the state of the market.”
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With a general lack of availability for tenants in the CBD, competition is fierce for the limited space that is available for immediate occupancy.
Mitchell Wallace Office Leasing Broker, CBRE
This surge over the past year has been a continuation of tenants’ natural migration back into the CBD, with the accelerated rate a direct result of a large tranche of lease expiries within a short period of time. Unfortunately for tenants, this has driven demand in a way which has not been seen for some time. Rental growth and diminishing incentives are also prevalent. In short; supply is simply not keeping up with demand.
Allow time to find the right solution. Organisations often underestimate the amount of time required to complete this process and are unaware of their requirements under their current lease. The standard ADLS lease requires tenants to provide notice of their intent to renew to their landlord no later than three months prior to their expiry, however this is often changed to six or nine months, depending on the size of the lease.
Though there is a development pipeline building, Wallace says, “The delay of new developments coming to market is creating a bottleneck of demand. Delivery for new buildings is still a minimum of 18 months away and there is strong pre-commitment already. A small number of office refurbishments are also underway; however, it is now looking unlikely that these will be completed any sooner than the new builds.”
Bespoke leases could have an even longer period. If your required floor area is 500sqm or less, CBRE recommends engaging with the market six months ahead of that date. Larger occupiers should begin assessing their options at least 24 months ahead of their expiry to ensure development opportunities are able to be considered.
The combination of these factors is creating a competitive market where both small and large tenants are missing out, as their leases expire and space becomes scarcer. Wallace says “To make the best of the situation, office tenants looking to make a move in the CBD need to be aware there are challenges when it comes to taking their next step.” As experts in this sector, CBRE has the following recommendations.
Conduct a review of space requirements through a hybridworking lens. While the work from home phenomenon is not as prevalent in Christchurch as other centres, it is still important to ensure it is considered as part of your floor space requirements or preferred office location. Engaging with spatial planners or other workspace consultants at this stage is particularly useful. Wallace recommends bringing in the experts in workspace consulting and office leasing, “In such a tight market you need to partner with the right people who can offer expert advice and help you find the right solution.”
Available now
Fitout in situ
On-site car parking
Turnkey Opportunity Practical Character Building 214 CASHEL STREET, CHRISTCHURCH CENTRAL
The on-going migration back into the CBD has seen opportunities for small-medium occupiers reduce significantly. Couple this with increasing construction costs which make bare-shell tenancies prohibitively expensive and you’ll find that there are only a handful of genuine options. 214 Cashel Street, with it’s convenient access, abundant amenity and high quality fitout, is therefore a highly attractive prospect. The north facing property located opposite Les Mills encourages activity, with Cashel Mall, Lichfield Lanes and Little High all just 5 minutes’ walk.
AVAILABLE FOR LEASE LEVEL
AREA
2
315sqm
www.cbre.co.nz/CCH100104 Please contact your agent for more information
Mitchell Wallace
Adam Wallis
mitchell.wallace@cbre.co.nz +64 27 664 4773
adam.wallis@cbre.co.nz +64 27 695 9989
Rare West-End Character Building 64 GLOUCESTER STREET, CHRISTCHURCH CENTRAL
The north-facing suite comprises a large board room, two office/meeting rooms, reception area, large open plan work space, and spacious kitchen. There are heat pumps throughout with bathrooms including a shower at the rear of the tenancy. The building has a seismic rating of at least 67% and provides good on-site car parking and bike storage. Please contact your agent for more information
AVAILABLE FOR LEASE LEVEL
AREA
Mitchell Wallace
1
290sqm
mitchell.wallace@cbre.co.nz +64 27 664 4773
Adam Wallis www.cbre.co.nz/CCH100114
adam.wallis@cbre.co.nz +64 27 695 9989
Competitively Priced Cashel Office 99 CASHEL STREET, CHRISTCHURCH CENTRAL
The first floor of 99 Cashel Street offers a unique office space with an existing fitout and excellent Cashel Mall branding. A reception area, kitchen, large open plan area, and meeting/conference rooms of varying sizes are included in the fitout. The building is located on the doorstep of the vibrant Riverside Market, Guthrey Centre, Crossing, and The Terrace. Please contact your agent for more information
AVAILABLE FOR LEASE LEVEL
AREA
Mitchell Wallace
1
830sqm
mitchell.wallace@cbre.co.nz +64 27 664 4773
Adam Wallis www.cbre.co.nz/CCH100113
adam.wallis@cbre.co.nz +64 27 695 9989
Excellent profile
Great natural light
Ample on-site parking
Profile and Location Refurbished and Ample Parking 62 RICCARTON ROAD, RICCARTON
Level 1, 62 Riccarton Road offers a recently refurbished offices with ample parking and abundant amenity. Less that 10min walk to Westfield Riccarton and a short drive into the CBD, the property is well placed for staff and clients alike. The property also enjoys prime frontage on one of the busiest arterial roads in the South Island with over 20,000 passing vehicle movements a day on average. Pragmatic landlords completed a refurbishment and strengthening program in 2020. Various sized tenancies are available, with a good level of base build in situ in all available spaces.
AVAILABLE FOR LEASE LEVEL
AREA
Unit 8
134sqm
Unit 9
210sqm
Unit 10
140sqm
www.cbre.co.nz/CCH100112 Please contact your agent for more information
Mitchell Wallace
Adam Wallis
mitchell.wallace@cbre.co.nz +64 27 664 4773
adam.wallis@cbre.co.nz +64 27 695 9989
Avoiding the fitout cost headache
Industry and media hype persists around the topic of rising construction costs, ongoing supply chain issues, delays, skills shortages, and other industry challenges. Although construction activity may be showing signs of slowing, it still remains healthy in many sectors. Demand continues for both new developments and occupiers wanting to undertake fitouts for refurbishment or repurposing. Even with the supply, market, and resource pressures, it’s reassuring that projects are still being delivered on budget, while balancing priorities such as quality, sustainability, and safety, and all to rigid programme deadlines for business needs. With the changing way occupiers are now working, many organisations are reviewing their business models and looking to adjust their current or newly leased space to suit these objectives. Occupiers considering undertaking an office fitout, need to consider how these risks are best mitigated to meet time, quality, and cost expectations.
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CBRE’s Building, Depreciation and Cost Consultancy (BDCC) team manages that process. Being across market trends, the team has established relationships within the construction industry allowing them to deliver clarity, minimise programme times, mitigate risks and help maximise potential returns in the long-term. By partnering with occupiers, they provide confidence by leading them through the project life cycle continually focused on minimising risk, engaging with the right people in the market, and with a sharp eye on delivering to time and budget constraints. It’s critical to acknowledge the value and advantage that early design investment offers, along with careful project planning and management throughout the life of the project. This early engagement enables the BDCC team to achieve a clear understanding of priorities from the outset and provide the right specialist expertise to help ensure delivery of results and long-term value. At the early stages of a project, the team considers concepts and market indicators to create a feasibility budget, advising on realistic costs that can incorporate all areas of risk within the current market. This usually includes an elemental review of the project, feasibility advice and allows for the latest market forecasts providing an annual project cash flow. Through early engagement in the more developed stages of design, the BDCC team is on hand to develop a more detailed budget, tracking changes, updating cash flows, looking at value engineering opportunities, and helping ensure value for money is being achieved. During procurement stage they undertake contract management ensuring up to date, beneficial and industry standard terms of engagement to protect all parties. The team focuses on a well-executed concise contract, with terms agreed clearly and early in procurement. By advising on specific topical terms such as agreed escalation adjustments, appropriate contingency allowances, accepted material alternatives, process for buying materials off-site and milestone completion dates, the team provides clarity and help dissolves the potential for disputes. Utilising the BDCC team’s extensive industry experience ensures the setup of a smooth tendering process, providing clear and consistent platforms for tender analysis, negotiation, and reporting recommendations. Throughout project progress, the team works alongside appointed contractors to establish processes such as regular reporting, variation management, consistently updated project cash flow and regular inspections to track progress, expenditure, risks, and milestones. At final account and after completion, the result is evaluated against initial projections to verify the effectiveness of the decisions and strategies throughout the project.
Even with the supply, market, and resource pressures, it’s reassuring that projects are still being delivered on budget, whilst balancing priorities such as quality, sustainability, and safety, and all to rigid programme deadlines for business needs. BDCC’s specialist expertise also extends to cost management services such as: – Reinstatement Cost Assessments for insurance purposes - should a loss event occur; this assessment provides accuracy in principal and mitigates underinsurance risks. – Purchase & Capital Expenditure Cost Assessments for Depreciation - enhances overall property financial performance, net income returned and yield, all increasingly important in today’s market. Put simply, the CBRE BDCC team is here to help ensure your fitout project is seamless and meets your property cost management needs. By removing the abundant stress, unknown risks and factors that can occur, they allow you to concentrate on your core business. James Green leads CBRE’s Building, Depreciation and Cost Consultancy services in New Zealand along with Qusain Khan. The team delivers services across the full property lifecycle including cost management and contract planning, tax depreciation schedules, technical due diligence, and condition assessments across diverse property portfolios from Chartered and Registered surveyors and specialists.
James Green Director, Building, Depreciation & Cost Consultancy
Qusain Khan Director, Building, Depreciation & Cost Consultancy
High Profile Suburban Opportunity 6 SHOW PLACE, ADDINGTON
A stunning three level building within the established Show Place Business Park. This building offers highquality, modern office space with excellent natural light and stunning views. A quality, existing fitout is in place and can remain if preferred. Several amenities are located both within Show Place and across the road at Tower Junction, including on-site parking. Please contact your agent for more information
AVAILABLE FOR LEASE LEVEL
AREA
Mitchell Wallace
2
680sqm
mitchell.wallace@cbre.co.nz +64 27 664 4773
Adam Wallis www.cbre.co.nz/CCH100115
adam.wallis@cbre.co.nz +64 27 695 9989
Large Flexible Floorplates 10 SHOW PLACE, ADDINGTON
A stunning building built to 100% NBS is currently available for occupancy. Located in Show Place, a campusstyle business park, this building has an attractive modern architectural style. There are excellent amenities in the immediate area of the property and ample parking is available on-site. The floorplates can be split to accommodate smaller tenancies of approximately 400sqm. Please contact your agent for more information
AVAILABLE FOR LEASE LEVEL
AREA
Mitchell Wallace
2
790sqm
4
461sqm
mitchell.wallace@cbre.co.nz +64 27 664 4773
Adam Wallis www.cbre.co.nz/CCH100116
adam.wallis@cbre.co.nz +64 27 695 9989
Refurbished Turn Key Opportunity 14 BIRMINGHAM DRIVE, MIDDLETON
The building is well positioned on a commanding site on the northern side of Birmingham Drive, providing excellent profile and ample on-site car parking, located just 4kms from the CBD. Level 1 offers fully fitted office accommodation that allows for excellent natural light. The existing fitout comprises 10 office/meeting rooms, three large meeting/training rooms, open plan work space, and a spacious kitchen and staff room. Please contact your agent for more information
AVAILABLE FOR LEASE LEVEL
AREA
Mitchell Wallace
1
638sqm
mitchell.wallace@cbre.co.nz +64 27 664 4773
Adam Wallis www.cbre.co.nz/CCH100028
adam.wallis@cbre.co.nz +64 27 695 9989
Modern Office, Great Location 5 SIR WILLIAM PICKERING DRIVE, BURNSIDE
Built immediately post earthquake to a 4 Green Star rating, this three level office building is one of few options for large occupiers with necessity to be out of the CBD. With excellent natural light throughout and a useful existing fitout, this premises is well suited to most businesses.
Please contact your agent for more information
AVAILABLE FOR LEASE LEVEL
AREA
Mitchell Wallace
Ground
711sqm
1
1,192sqm
mitchell.wallace@cbre.co.nz +64 27 664 4773
Adam Wallis www.cbre.co.nz/CCH100111
adam.wallis@cbre.co.nz +64 27 695 9989
To find a workspace you’ll love, contact the office leasing team today. VISIT US ONLINE WWW.CBRE.CO.NZ/WORKSPACE-CHRISTCHURCH
Adam Wallis
Mitchell Wallace
Tim Rookes
Senior Negotiator adam.wallis@cbre.co.nz 027 695 9989
Senior Negotiator mitchell.wallace@cbre.com 027 664 4773
Managing Director tim.rookes@cbre.com 027 562 3700
© 2022 CBRE (Agency) Limited, Licensed Real Estate Agent (REAA 2008) 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.