This article is from the Australian Property Journal archive
Auckland’s retail vacancy rate has eased more than half a point over the past 12 months, but still remains at a very tight 1.7%, according to the latest research from leading New Zealand commercial agent Bayleys.
Bayleys Research found that Auckland’s vacancy rate recently move 0.6% on last year’s record low level of 1.1% and could be tracking towards the 1.9% at the beginning of January 2004.
Bayley’s Auckland retail survey monitors vacancy levels and shop numbers in several major shopping destinations throughout the Auckland region including Auckland City, North Shore City, Waitakere City and Manukau City.
Bayley’s regional analysis reveals that all four areas recorded increased vacancy rates.
“The biggest increase in vacancy levels was recorded in North Shore City which sits at 2.1% — a 1.1% increase compared to last year,” director of Bayleys Research Gerald Rundle.
“North Shore City currently accounts for 23% of the overall number ofAuckland retail shops surveyed, which suggests that movements in vacancy rates in this area have a significant impact on the overall vacancy results.
“An increase in the number of empty shops without road frontage situated off Lake Road, Takapuna has elevated the strip retail vacancy rate in the area from 2% to 9%. Shopping centres on the North Shore have also experienced a slight increase, moving up 0.3 percentage points to 1.7%,” he added.
Bayley Research found Auckland City, with 48% of the total number of retail outlets surveyed, also experienced an increase in vacancy levels, up from 1.5% recorded last year to 2.2%. This is currently the highest vacancy rate of all regions surveyed in the Auckland retail survey, but is still at a very good level and is the second lowest rate recorded since the inception of the survey in 2002. The main reason for this increase is an increased amount of vacancy in shopping centres and also strip retail located in Parnell, Ponsonby and O’Connell Street.
Waitakere City and Manukau City account for approximately 29% of the Auckland retail outlets surveyed, with Waitakere City experiencing an increase in vacancy of 0.2 percentage points to 1.3%. Manukau City’s occupancy decreased slightly and now sits at 0.2%, up from the full occupancy achieved last survey. Similar to the retail market on the North Shore and in Auckland City, shopping centre vacancies were also the main contributor to the slight increase in vacancy rates in Waitakere and Manukau Cities.
By Adam Parsons
