Auckland businesses are squeezed for office space, and the central city is experiencing its most critical shortages of commercial real estate on record.
So rents could be about to shoot up fast.
Chris Dibble, Colliers International's national research manager, said latest analysis of vacancy rates surprised him because it showed that an area less than the size of a soccer field was available to lease.
"We knew it was going to be low, but not this low. The prime sector for premium and A-grade vacancy rates in Auckland CBD is just 1.4 per cent, beating our expectations of 2 per cent. It was 4.7 per cent six months ago and the 20-year average is 8.2 per cent," he found.
"The vacant space aggregates to just 6116sq m, less than a soccer field and unprecedented in our records which began 20 years ago," Dibble said.
"Auckland CBD property houses some of the most productive businesses in New Zealand and with little space available for expansion, we are stalling the potential growth of the country at a critical time in the cycle.
"In a market that needs to attract quality staff through quality environments, the lack of available space and developments nearing completion means we will stumble just as we were making headwinds in what has been a tough slog for many. There are only 11 prime buildings with vacant space available. Only eight buildings can accommodate more than 20 staff (currently 11 per cent of the overall CBD market).
"Only seven are able to accommodate less than 20 staff. Tenants who haven't found suitable accommodation will have to forgo quality or wait until early 2016 for a slight reprieve from spec builds such as Mansons TCLM's development or Goodman Group.
"Then it's 2019 for precinct properties redevelopment of downtown. Of course, this is good news for landlords, who in the face of demand and little alternative options for tenants will start to hike rents more aggressively over the next 24 months and incentives will dry up," Dibble said.