Crazy rent: best office building for only $290/sqm

[fudosan]

Vero Centre, considered the best office building in the country, has lots of empty space now. A rough calculation based on known figures alone point to over 10% vacancy.

So, why go to other grade buildings when you can get the best for only $290/sqm?

As marketed by Vero Centre management:

Available Areas
Level 09
Level 10
Level 23
Part Level 31
Part Level 34

Source: http://www.verocentre.co.nz/space-for-lease


How about subleases?

For Lease
The Vero Building
48 Shortland Street
Areas available from 293m2 to 633m2.
- Sublease $290/sqm
- Half floor: 633sqm (340sqm+ 293sqm)
- Good quality fitout with panoramic views
- Premium executive offices
- NZ's premium office tower

Source: http://www.realcommercial.co.nz/real...r+sale/5545877

[Mr_bond]

The issue with subleases, and the real commercial link doesn't mention it, but what sort of lease length have you got. $290 psm is great value in that building, but if you can only be there for 12 - 18 months before the headlease runs out, then its not much good to many businesses.

I recall one of the top floors leasing (might have been a renewal) at $600 psm at the start of last year. With opex is was a occupancy cost of $750 psm as KIPT structure their opex to be more expensive at the top of the building.

[fudosan]

Good point, Mr. Bond. Now if the sublease term is too short, who will bother signing up anyway? BTW, I understand this sublease is a result of Hanover Finance gone from this building.

I recall one of the top floors leasing (might have been a renewal) at $600 psm at the start of last year. building.

A recent normal lease ad I saw was asking $278,269 on 612sqm or $455/sqm.

[fudosan]

This is even crazier!

$80/sqm for an office in Centre Court building at 131 Queen Street.

I saw this big sign on the building while I was doing my usual round of touring the Auckland CBD yesterday.

[fudosan]

Or how about $177/sqm in Bob Jones's Forsyth Barr Towe at 55 Shortland Street.

Location: City Centre
Property use: Office
Floor area: 1,000m2
Price: Asking price $177,888 per annum excl. GST
Property ID#: AWC272
For Lease on the 5th floor in one of Auckland's most prestigious locations in downtown Auckland.

Source: http://www.trademe.co.nz/Browse/List...x?id=257900111